Mda v CCMA and Another (J1500/99) [2000] ZALC 114 (10 October 2000)

Mda v CCMA and Another (J1500/99) [2000] ZALC 114 (10 October 2000)

The Labour Court found that the arbitrator committed a reviewable irregularity by referring to confidential conciliation proceedings and limiting compensation based on a without prejudice offer. The arbitrator also erred in calculating compensation on nett rather than gross remuneration, contrary to Section 194(1) of the Labour Relations Act. The court held that compensation for procedural unfairness must be calculated on gross remuneration for the relevant period, and the applicant is entitled to full compensation less any amounts already paid, subject to tax directives. The arbitration award was reviewed and set aside, and the court substituted its own determination of compensation.

Citation
[2000] ZALC 114
Parties
Applicant: A Mda; Respondent: CCMA; Respondent: L-MAP
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
10 October 2000
Case Number
J1500/99
Procedural Posture
Review Application / Judgment
Outcome
Arbitration award reviewed and set aside; compensation recalculated on gross remuneration basis; costs awarded to applicant.
Judges
Ngcamu
Legal Topics
Arbitration Review, Confidentiality of Conciliation, Compensation for Unfair Dismissal, Procedural Unfairness

Case Brief

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Parties

A Mda

Applicant

CCMA

Respondent

L-MAP

Respondent

Procedural Posture

Review Application / Judgment

  1. 1 Whether the arbitration award is reviewable by the Labour Court.
  2. 2 Whether the arbitrator was entitled to refer to confidential conciliation proceedings when making the award.
  3. 3 Whether the proviso in Section 194(1) of the Labour Relations Act is applicable to the compensation awarded.

Ratio Decidendi

The Labour Court found that the arbitrator committed a reviewable irregularity by referring to confidential conciliation proceedings and limiting compensation based on a without prejudice offer. The arbitrator also erred in calculating compensation on nett rather than gross remuneration, contrary to Section 194(1) of the Labour Relations Act. The court held that compensation for procedural unfairness must be calculated on gross remuneration for the relevant period, and the applicant is entitled to full compensation less any amounts already paid, subject to tax directives. The arbitration award was reviewed and set aside, and the court substituted its own determination of compensation.

Court Disposition

Arbitration award reviewed and set aside; compensation recalculated on gross remuneration basis; costs awarded to applicant.

Orders

  • The arbitration award is reviewed and set aside.
  • The third respondent is directed to pay the applicant gross remuneration for the period 26 June 1998 to 16 February 1999, subject to tax directives and less any amount already paid.