Mtati v KPMG Services (Pty) Ltd (J2277/16) [2016] ZALCJHB 403; [2017] 3 BLLR 315 (LC); (2017) 38 ILJ 1362 (LC) (18 October 2016)

Mtati v KPMG Services (Pty) Ltd (J2277/16) [2016] ZALCJHB 403; [2017] 3 BLLR 315 (LC); (2017) 38 ILJ 1362 (LC) (18 October 2016)

The court held that the applicant's second resignation with immediate effect terminated the employment contract, thereby depriving the respondent of any jurisdiction to discipline her. The employer's authority to discipline only persists during the notice period if the employee is still serving notice. However, once the employee resigns with immediate effect, the employment relationship ends and the employer loses all disciplinary powers. The disciplinary hearing and the subsequent dismissal were declared null and void, as they occurred after the employment contract had ended. The court further found that the matter was not moot, as the disciplinary findings continued to affect the...

Citation
[2016] ZALCJHB 403
Parties
Applicant: Kalipa Mtati; Respondent: KPMG Services (Pty) Ltd
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
18 October 2016
Case Number
J2277/16
Procedural Posture
Urgent Application / Application for Urgent Interdict Before Disciplinary Hearing Outcome
Outcome
Application granted. The disciplinary hearing and dismissal are declared null and void.
Judges
Molahlehi E
Legal Topics
Resignation, Disciplinary Proceedings, Jurisdiction of Employer, Urgent Interdict, Employment Contract Termination
Labour Law Civil Procedure Resignation Disciplinary Proceedings Jurisdiction of Employer Urgent Interdict Employment Contract Termination

Case Brief

Summary, issues, holding and outcome

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Parties

Kalipa Mtati

Applicant

KPMG Services (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Application for Urgent Interdict Before Disciplinary Hearing Outcome

Legal Issues

  1. 1 Whether an employer retains the power to discipline an employee after the employee has resigned with immediate effect.
  2. 2 Whether the disciplinary hearing and subsequent dismissal after the second resignation are valid.
  3. 3 Whether the matter is moot or academic given the disciplinary hearing has already occurred.

Ratio Decidendi

The court held that the applicant's second resignation with immediate effect terminated the employment contract, thereby depriving the respondent of any jurisdiction to discipline her. The employer's authority to discipline only persists during the notice period if the employee is still serving notice. However, once the employee resigns with immediate effect, the employment relationship ends and the employer loses all disciplinary powers. The disciplinary hearing and the subsequent dismissal were declared null and void, as they occurred after the employment contract had ended. The court further found that the matter was not moot, as the disciplinary findings continued to affect the...

Court Disposition

Application granted. The disciplinary hearing and dismissal are declared null and void.

Orders

  • The failure to comply with the time frames as provided for in the rules of the court by the applicant is condoned and the matter is treated as one of urgency.
  • The respondent had no jurisdiction to discipline the applicant following her second letter of resignation.