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South Africa Judgment

Labour Court

City Express Stores (Pty) Ltd v Mokhothu (J884/00) [2001] ZALC 115 (2 August 2001)

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01

Holding and result

The court found that the CCMA commissioner committed a gross misdirection by accepting hearsay evidence regarding the alleged theft and failing to properly investigate whether the money was actually placed in the safe. The evidence presented did not prove, on a balance of probabilities, that Mr Mokhothu stole the money. Furthermore, the commissioner erred in finding inconsistency in sanction without sufficient factual basis, as the manageress was not called to testify and her role in the incident was not clarified. In light of these deficiencies, the award was reviewed and set aside, and the matter was remitted to the CCMA for rehearing.

Court disposition

CCMA award set aside and matter remitted for rehearing. Costs awarded against first and second respondents.

Orders

  • The CCMA award dated 21 January 2000 is reviewed and set aside.
  • The matter is remitted to the CCMA for rehearing.
  • The first and second respondents are ordered to pay the costs.

02

Material facts

Parties

City Express Stores (Pty) Ltd

Applicant

Ernest Johannes Mokhothu

Respondent

Amounts and remedies

  • Compensation Awarded by CCMA: ZAR 10,228
  • Alleged Stolen Amount: ZAR 18,577

03

Procedural history

  1. Posture

    Review Application / Labour Court Review of CCMA Arbitration Award

04

Questions and positions

Legal issues

Party arguments

Applicant
City Express Stores argued that Mr Mokhothu was dismissed for theft of R18,577.00 from the safe, to which he and Sylvia had keys. The applicant contended that the CCMA commissioner erred in finding the dismissal unfair and ordering compensation, as the evidence supported the finding of theft and justified dismissal.
Respondent
FEDCOR, acting for Mr Mokhothu, opposed the review and argued that the evidence did not prove theft on a balance of probabilities. The union highlighted that the manageress, who was responsible for placing money in the safe, was not called to testify, and that the evidence relied upon was hearsay. They further argued that the sanction was inconsistent, as the manageress was only demoted while Mr Mokhothu was dismissed.

05

Court’s reasoning

  1. 01

    Labour Relations Act, 66 of 1995

    In review proceedings, the court must determine whether the commissioner committed a gross misdirection or failed to properly investigate material facts.

  2. 02

    Sidumo v Rustenburg Platinum Mines Ltd [2007] ZACC 22

    The burden of proof in unfair dismissal cases rests on the employer to prove the reason for dismissal on a balance of probabilities.

  3. 03

    National Union of Metalworkers of SA v Henred Fruehauf Trailers (Pty) Ltd (1995) 16 ILJ 683 (A)

    Consistency in disciplinary sanctions is required unless there is a justifiable basis for differentiation.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the CCMA commissioner committed a gross misdirection by accepting hearsay evidence regarding the alleged theft and failing to properly investigate whether the money was actually placed in the safe. The evidence presented did not prove, on a balance of probabilities, that Mr Mokhothu stole the money. Furthermore, the commissioner erred in finding inconsistency in sanction without sufficient factual basis, as the manageress was not called to testify and her role in the incident was not clarified. In light of these deficiencies, the award was reviewed and set aside, and the matter was remitted to the CCMA for rehearing.

Obiter and limits

  • The court noted that reliance on hearsay evidence without calling the key witness undermines the reliability of the factual findings.
  • The computer record of daily takings cannot substitute for direct evidence of money being placed in the safe.
  • Justice requires that all relevant witnesses be called to clarify disputed facts in arbitration proceedings.

Court disposition

CCMA award set aside and matter remitted for rehearing. Costs awarded against first and second respondents.

  • The CCMA award dated 21 January 2000 is reviewed and set aside.
  • The matter is remitted to the CCMA for rehearing.
  • The first and second respondents are ordered to pay the costs.

Source and reliance status

Labour Court

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Judgment reading view

Judgment text

The complete available source text.

Source document

Labour Court

Judgment

[2001] ZALC 115

Sneller Verbatim/ssl

IN THE

LABOUR COURT OF SOUTH AFRICA

BRAAMFONTEIN CASE NO: J884/00

2001-08-02

In the matter between

CITY EXPRESS STORES (PTY) LTD Applicant

and

ERNESTJOHANNES MOKHOTHU Respondent

_______________

J U D G M E

N T

LANDMAN J: City Express Stores (Pty) Ltd dismissed two of its employees for theft. These two employees were Ernest Johannes Mokhothu and a lady referred to as Sylvia.

Mr Mokhothu was dissatisfied with his dismissal and he referred a dispute to the CCMA. The dispute came before Commissioner Molotsi who heard evidence and then made an award in terms of which he found that the dismissal of Mr Mokhothu was unfair. He ordered City Express to pay compensation to Mr Mokhothu in the sum of R10 228,00.

Subsequently an application for review has been filed on behalf of City Express Stores. This application has been opposed by FEDCOR, a union acting on behalf of Mr Mokhothu. I have examined the award carefully and it appears that the Commissioner found that Mr Mokhothu had the keys to the safe as did Sylvia, that money was missing from the safe in the amount of R18 577,00. The commissioner appears to have accepted that, that money was stolen by Mr Mokhothu. However, he finds that the manageress of the store, one Bernadette Seturumane, was demoted because it was considered to be negligence on her part to hand the two keys, one to Mr Mokhothu and one to Sylvia. He viewed the fact that the manageress was merely demoted whereas Mr Mokhothu was dismissed as being an inconsistency in imposing a sanction. This led him to conclude that Mr Mokhothu was entitled to compensation. During the course of argument I raised the question with counsel and with the union representative whether it had been proved that Mr Mokhothu had stolen the money. I raised this question because on the evidence which was presented at the arbitration it is not clear and it does not appear to have been proven that money in the sum of R18 577,00 was placed in the safe. It is not clear whether any money was placed in the safe. The most that one can find is what the area manager said, on page 68 of my papers. She was asked: "On the 24th before the store was closed the money that was put in the safe, are you are that it was not counted?" Mrs Rantimo replies:

Subsequently an application for review has been filed on behalf of City Express Stores. This application has been opposed by FEDCOR, a union acting on behalf of Mr Mokhothu.

I have examined the award carefully and it appears that the Commissioner found that Mr Mokhothu had the keys to the safe as did Sylvia, that money was missing from the safe in the amount of R18 577,00. The commissioner appears to have accepted that, that money was stolen by Mr Mokhothu. However, he finds that the manageress of the store, one Bernadette Seturumane, was demoted because it was considered to be negligence on her part to hand the two keys, one to Mr Mokhothu and one to Sylvia. He viewed the fact that the manageress was merely demoted whereas Mr Mokhothu was dismissed as being an inconsistency in imposing a sanction. This led him to conclude that Mr Mokhothu was entitled to compensation.

During the course of argument I raised the question with counsel and with the union representative whether it had been proved that Mr Mokhothu had stolen the money. I raised this question because on the evidence which was presented at the arbitration it is not clear and it does not appear to have been proven that money in the sum of R18 577,00 was placed in the safe. It is not clear whether any money was placed in the safe. The most that one can find is what the area manager said, on page 68 of my papers. She was asked:

"On the 24th before the store was closed the money that was put in the safe, are you are that it was not counted?"

Mrs Rantimo replies:

"I am not aware that it was not counted but what I know is that daily takings from the computer stated clearly what was the amount of money put in the safe. Apart from that Bernadette, the manager, can only verify that, not myself." Quite clearly the evidence of Ms Rantimo is hearsay evidence. She was not present. Furthermore to say that the computer indicates what amount of money was put in the safe is palpably incorrect. The computer can only indicate what money was received that day but it cannot indicate what happened to that money. It certainly cannot indicate that the money was put in the safe. The only person who can verify that is the person who counted the money, put it in the safe and closed it. That, according to Ms Rantimo, was the manageress, Bernadette. For reasons which are not clear and which the union very carefully pointed out it its papers, the manageress was not called to give evidence at the arbitration inquiry. The difficulty with which I am faced is that the union has not taken this point. However, the heads of argument make it clear that the question of the theft is placed in issue. In the circumstances I am not convinced that the theft has been proven on a balance of probabilities. This is a gross misdirection on behalf of the Commissioner who should have investigated that question. And secondly, if there was indeed theft, then it appears to me that the Commissioner misdirected himself in saying that the fact that the manageress was demoted indicates inconsistency in sentencing. In the circumstances it appears to me that justice will only be done by reviewing and setting aside the award dated 21 January 2000 and remitting the matter to the CCMA for a rehearing. The first and second respondents are ordered to pay the costs.

"I am not aware that it was not counted but what I know is that daily takings from the computer stated clearly what was the amount of money put in the safe. Apart from that Bernadette, the manager, can only verify that, not myself."

Quite clearly the evidence of Ms Rantimo is hearsay evidence. She was not present. Furthermore to say that the computer indicates what amount of money was put in the safe is palpably incorrect. The computer can only indicate what money was received that day but it cannot indicate what happened to that money. It certainly cannot indicate that the money was put in the safe. The only person who can verify that is the person who counted the money, put it in the safe and closed it. That, according to Ms Rantimo, was the manageress, Bernadette.

For reasons which are not clear and which the union very carefully pointed out it its papers, the manageress was not called to give evidence at the arbitration inquiry.

The difficulty with which I am faced is that the union has not taken this point. However, the heads of argument make it clear that the question of the theft is placed in issue.

In the circumstances I am not convinced that the theft has been proven on a balance of probabilities. This is a gross misdirection on behalf of the Commissioner who should have investigated that question. And secondly, if there was indeed theft, then it appears to me that the Commissioner misdirected himself in saying that the fact that the manageress was demoted indicates inconsistency in sentencing.

In the circumstances it appears to me that justice will only be done by reviewing and setting aside the award dated 21 January 2000 and remitting the matter to the CCMA for a rehearing.

The first and second respondents are ordered to pay the costs.

_____ Judge A A Landman Judge of the Labour Court of South Africa ---o0o---

_____

Judge A A Landman

Judge of the Labour Court of South Africa

---o0o---

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Authorities

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Sidumo v Rustenburg Platinum Mines Ltd [2007] ZACC 22

Case cited

National Union of Metalworkers of SA v Henred Fruehauf Trailers (Pty) Ltd (1995) 16 ILJ 683 (A)

Case cited

Labour Relations Act, 66 of 1995

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