Fidelity Security (Pty) Ltd v Skhosana and Others (JR 1425/2020) [2023] ZALCJHB 268 (2 March 2023)

Fidelity Security (Pty) Ltd v Skhosana and Others (JR 1425/2020) [2023] ZALCJHB 268 (2 March 2023)

The Court found that the termination of the first respondent's employment was effected by the applicant and constituted a dismissal as defined in section 186(1)(a) of the Labour Relations Act. The applicant's reliance on the automatic termination clause did not lawfully exclude the statutory right not to be unfairly dismissed. The applicant failed to provide a valid reason for the client's loss of trust and did not follow fair procedures, including proper consultation and compliance with notice requirements. The arbitration award declaring the dismissal procedurally and substantively unfair was correct, and the review application was dismissed.

Citation
[2023] ZALCJHB 268
Parties
Applicant: Fidelity Security (Pty) Ltd; Respondent: Agnes Skhosana; Respondent: Commissioner Mukovhe Ravhura; Respondent: Commission for Conciliation, Mediation and Arbitration
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
2 March 2023
Case Number
JR 1425/2020
Procedural Posture
Review Application / Judgment on Review of Arbitration Award
Outcome
Application dismissed; arbitration award upheld.
Judges
M Baloyi
Legal Topics
Automatic Termination Clause, Unfair Dismissal, Jurisdiction of Ccma, Procedural Fairness, Substantive Fairness
Labour Law Automatic Termination Clause Unfair Dismissal Jurisdiction of Ccma Procedural Fairness Substantive Fairness

Case Brief

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Parties

Fidelity Security (Pty) Ltd

Applicant

Agnes Skhosana

Respondent

Commissioner Mukovhe Ravhura

Respondent

Commission for Conciliation, Mediation and Arbitration

Respondent

Procedural Posture

Review Application / Judgment on Review of Arbitration Award

Legal Issues

  1. 1 Whether the termination of the first respondent's employment constituted a dismissal under section 186(1)(a) of the Labour Relations Act.
  2. 2 Whether the arbitration award declaring the dismissal procedurally and substantively unfair should be reviewed and set aside.
  3. 3 Whether the automatic termination clause in the employment contract lawfully excluded the right not to be unfairly dismissed.

Ratio Decidendi

The Court found that the termination of the first respondent's employment was effected by the applicant and constituted a dismissal as defined in section 186(1)(a) of the Labour Relations Act. The applicant's reliance on the automatic termination clause did not lawfully exclude the statutory right not to be unfairly dismissed. The applicant failed to provide a valid reason for the client's loss of trust and did not follow fair procedures, including proper consultation and compliance with notice requirements. The arbitration award declaring the dismissal procedurally and substantively unfair was correct, and the review application was dismissed.

Court Disposition

Application dismissed; arbitration award upheld.

Orders

  • The application is dismissed.
  • There is no order as to costs.