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
Mind the Conduct: A Guide to COFI – Part 5: Governance and Accountability
by Hilah Laskov, Director Introduction In this article series, we take a deep dive into the South African Conduct of [...]
Misuse of the business rescue process – failure before it begins
by Dr. Eric Levenstein, Director and Head of Insolvency & Business Rescue and Amy Mackechnie, Senior Associate Business rescue was introduced [...]
Constitutional Court clarifies rights of innocent contractors under invalid state contracts
by Sarah Moerane, Director and Kuhle Joja, Associate In Minister of Defence and Military Veterans v Zeal Health Innovations (Pty) [...]
Untangling the mischief of section 43 of the Electronic Communications Act: A missed opportunity in the Amendment Bill
by Corlett Manaka, Director and Head of Disputes, Akhona Bilatyi, Director and Koketso Rapoo, Senior Associate On 12 March 2026, [...]
A charge by any other name would smell as sweet
by Bradley Workman-Davies, Director The Labour Appeal Court's judgment in Machi v Chep SA (Pty) Ltd and Others serves as [...]
When a misdirected email becomes a data breach: The Information Regulator issues an enforcement notice on internal and accidental security compromises
by Armand Swart, Director, Hlonelwa Lutuli, Associate and Isabella Keeves, Candidate Attorney On 22 May 2026, South Africa’s Information Regulator [...]
