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
Paint-by-numbers: Competition law litigation against Google and Meta
Online Intermediation Platforms Market Inquiry Is it with bated breath that one should await the outcome of the Online Intermediation [...]
Is South Africa in a state of procurement limbo? Where to from here, for now?
Public procurement in South Africa by Sarah Moerane, Director, and Koketso Rapoo, Candidate Attorney Public procurement in South Africa is [...]
Putting Directors on Notice! – Section 129(7) of the Companies Act
Section 129(7) of the Companies Act The often "overlooked" Section and its meaning for directors of financially distressed companies by [...]
Explanatory Note
"No right, including the right to strike, is absolute." (AMCU and Others vs Anglo Gold Ashanti and Others) The right [...]
National minimum wage increases for 2022
Adjusted national minimum wage Following a mandatory annual review process, the Minister of Employment and Labour announced increases to the [...]
Market Inquiry: South African Fresh Produce Market
by Ahmore Burger-Smidt, Director and Head of Data Privacy and Cybercrime Practice and member of the Competition Law Practice and [...]
