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
Renting out your home? The Consumer Protection Act does not apply to you says Supreme Court of Appeal
by Armand Swart, Director In the judgment of Els v Venter and Another (449/2024) [2025] ZASCA 163 (27 October 2025), [...]
Bullies beware: When workplace toxicity becomes a dismissible offence
by Bradley Workman-Davies, Director For many years, workplace bullying occupied an uncomfortable space in South African labour law. Employers recognised [...]
The rule of law remains paramount: Lessons from City of Tshwane Metropolitan Municipality v Summer Season Trading 63 (Pty) Ltd
by Bulelwa Mabasa, Director and Head of Land Reform and Samkelo Ntuli, Candidate Attorney The dispute in Summer Season Trading [...]
Mind the Conduct: A Guide to COFI – Part 4: Principles and Conduct Requirements
by Hilah Laskov, Director Introduction In this article series, we take a deep dive into the South African Conduct of [...]
The Concept of “Need” in South Africa’s Healthcare Framework: From Certificates of Need to National Health Insurance Accreditation
by Neil Kirby, Director and Head of Healthcare & Life Sciences and Vhutshilo Muambadzi, Candidate Attorney On 18 May 2026, the [...]
The Chief Restructuring Officer in South Africa in 2026: A real option for the turnaround of distressed entities
by Eric Levenstein, Head of Insolvency and Business Rescue As South African companies continue to suffer from an ailing economy, [...]
