Legal updates and opinions
News / News
DISMISSED FOR NOT ACCEPTING AN EMPLOYER’S DEMAND – WHEN IS THIS AUTOMATICALLY UNFAIR?
By Bradley Workman-Davies, Director
The Labour Relations Act, 66 of 1995 (“LRA“), which generally protects employees in South Africa against (amongst other things) unfair dismissal, as well as being subjected to unfair labour practices, was amended in January 2015 to clarify an issue around a specifically harmful category of dismissal, namely when an employee may be considered to have been dismissed because of “a refusal by employees to accept a demand in respect of any matter of mutual interest between them and their employer.”
Clarity on this issue is crucial, as any dismissal which takes place for this reason is considered to be automatically unfair in terms of section 187(1)(c) of the LRA, and could entitle the dismissed employees to up to 24 months compensation (double the maximum amount to which an employee who is simply dismissed unfairly may be entitled).
Recent case law from the last quarter of 2019 has tested this scenario, and has started to give further details as to when an employee can avail themselves of the right not to be dismissed for this reason.
In the Labour Appeal Court, the case of National Union of Metalworkers of SA & others v Aveng Trident Steel (A Division of Aveng Africa (Pty) Ltd) & another (2019) 40 ILJ 2024 (LAC), (“Aveng Trident”) considered whether an employer could propose retrenchments and, as an alternative to dismissal offer employees continued employment on amended terms and conditions of employment. Under a previously adopted approach, employees could then claim that the proposal to change terms and conditions of employment was a “demand” in respect of “a matter of mutual interest“, and that if the employees refused to agree to the change and were dismissed, they had been automatically unfairly dismissed. However, the LAC in Aveng Trident found that, in this case, the employer had dismissed the employees for its operational requirements, and not because they refused a demand by the employer.
Also, in the case of Jacobson v Vitalab (2019) 40 ILJ 2363 (LC), the Labour Court found that the “matter of mutual interest” has to relate to collective bargaining in relation to the employment relationship, and can only be a ground for automatically unfair dismissal when a group of employees is affected. As such, an individual cannot claim to have been automatically unfairly dismissed if he/she refused to accept a mutual interest demand by the employer, and the employee must resort to the ordinary procedure for claiming unfair dismissal.
After the courts’ guidance, it is now much clearer that not every failed negotiation, which leads to an employee being dismissed can result in an automatically unfair dismissal claim, and the scope for such remedy has been narrowed and explained.
Latest News
Defamation in Labour Law – Manqele V Baloyi Masango Inc Attorneys and Others (896/2023) [2025] Zampmbhc 75 (12 August 2025)
by Bankey Sono, Director and Neo Sewela, Senior Associate It is not unusual for employers to appoint a law firm [...]
Voluntary liquidations: A cost effective and efficient method of conducting a corporate clean-up, and for ending the existence of dormant companies
by Brendan Olivier Quite understandably, the word 'liquidation' can send shivers down the spine, and cause a company director to [...]
Substance dependence in the workplace- misconduct or incapacity?
by Bradley Workman-Davies - Director, Nasheetah Smith - Senior Associate & Isabella Keeves - Candidate Attorney One of the challenges [...]
Cutting the baby in half – when equality meets reality: Paid maternity leave after Van Wyk v Minister of Employment and Labour
by Bradley Workman-Davies, Director and Kerry Fredericks, Director The Constitutional Court's recent judgment in Van Wyk and Others v Minister [...]
SME cashflow threats: when liquidation strikes a supplier or customer
by Brendan Olivier An SME that permits its customers and suppliers to trade with it on credit terms, does so [...]
Global developments in gambling, betting and e-sports regulation: Lessons for South Africa
by Tebogo Sibidla, Director Like many other sectors of the economy that rely on technology, online gambling, gaming and betting [...]
