Legal updates and opinions
News / News
Banking on a resignation with immediate effect? Don’t count on it!
by Sandile July, Director and Lisa Appelgryn, Senior Associate: Labour & Employment Practice
- The Labour Appeal Court (“LAC“) in the matter of Standard Bank of South Africa Ltd v Nombulelo Chiloane (case no. JA85/18) has clarified the issue of the effect of a resignation with immediate effect in the midst of a pending disciplinary hearing.
- The Constitutional Court, in the matter of Steenkamp & Others v Edcon Ltd (National Union of Metalworkers of SA intervening) made the following statement obiter:
“Except where summary dismissal is warranted, the unilateral act of the employer in terminating the contract, whether by notice or other conduct, does not without more bring an end to the contract of employment. The same applies to an employee who gives short notice in violation of the contract: he or she may be obliged to serve out the notice period. In neither case does the unlawful repudiation of the contract have to be accepted by the other party“. - The LAC relies on this obiter dictum and concludes that if the contract provides for a notice period, the party that seeks to withdraw from the contract must give or serve the requisite notice. The provisions of the Basic Conditions of Employment Act No. 75 of 1997 (“BCEA“) will apply in circumstances where the contract of employment does not make provision for a notice period.
- In light of the above, an employee will not be able to escape the disciplinary process by tendering a resignation with immediate effect. The essence of the judgement is that there exists no such thing as resigning with immediate effect in the employment context, unless the employer waives the notice period. Notice must be served or given either in terms of the contract of employment or in terms of section 37 of BCEA.
Latest News
Mindset shift needed in arbitration
Speed, cost-efficiency and the ability to tailor the process to fit the parameters of the dispute are among the most [...]
Can directors of state-owned companies be held to account by the SA public?
South African President Ramaphosa admitted in his state of the nation address that state-owned enterprises “are experiencing severe financial operation [...]
Trade marks: sports and the creation of superstars
As the largest single sporting event, the FIFA World Cup is watched across the globe which has led to [...]
Commentary on the State Liability Amendment Bill
With reference to the recent publication of the proposed State Liability Amendment Bill [B16-2018] ("the Bill"), in my view: the [...]
GDPR and domain names
By Janine Hollesen and Donvay Wegierski, Directors On 25 May 2018 the EU's General Data Protection Regulation (GDPR) came into [...]
MESSI is a trade mark
By Janine Hollesen and Donvay Wegierski, Directors In April, the EU court ruled that the degree of similarity between the [...]
