Rand Water Board v Commission for Conciliation Mediation And Arbitration and Others (JR 1704/02) [2004] ZALC 20; (2005) 26 ILJ 2028 (LC) (23 February 2004)

Rand Water Board v Commission for Conciliation Mediation And Arbitration and Others (JR 1704/02) [2004] ZALC 20; (2005) 26 ILJ 2028 (LC) (23 February 2004)

The Labour Court held that the arbitrator erred in awarding compensation for procedural unfairness where no evidence of real prejudice was presented. The disciplinary code's procedural requirements are guidelines and not strictly obligatory. The only procedural irregularity was the failure to provide written reasons for the appeal decision, which did not result in material prejudice to the employee. The arbitrator incorrectly applied the unamended section 194 of the LRA, failing to exercise proper discretion as required by the amended section. The Court exercised its discretion to set aside the compensation award, finding that no compensation was warranted under the circumstances.

Citation
[2004] ZALC 20
Parties
Applicant: Rand Water Board; Respondent: Commission for Conciliation Mediation and Arbitration; Respondent: Faizel Mooi, N.O.; Respondent: Jerry Methula
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
23 February 2004
Case Number
JR 1704/02
Procedural Posture
Review Application / Judgment on Review of Arbitration Award
Outcome
Application to review and set aside the arbitration award is granted. The compensation award is set aside and substituted with a finding that the dismissal was both substantively and procedurally fair.
Judges
NKABINDE
Legal Topics
Procedural Fairness, Compensation for Unfair Dismissal, Disciplinary Code, Review of Arbitration Award
Labour Law Civil Procedure Procedural Fairness Compensation for Unfair Dismissal Disciplinary Code Review of Arbitration Award

Case Brief

Summary, issues, holding and outcome

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Parties

Rand Water Board

Applicant

Commission for Conciliation Mediation and Arbitration

Respondent

Faizel Mooi, N.O.

Respondent

Jerry Methula

Respondent

Procedural Posture

Review Application / Judgment on Review of Arbitration Award

Legal Issues

  1. 1 Whether the arbitration award finding procedural unfairness in the dismissal was correct.
  2. 2 Whether compensation for procedural unfairness was justified in the absence of real prejudice.
  3. 3 Whether the disciplinary code's procedural requirements are obligatory or merely guidelines.

Ratio Decidendi

The Labour Court held that the arbitrator erred in awarding compensation for procedural unfairness where no evidence of real prejudice was presented. The disciplinary code's procedural requirements are guidelines and not strictly obligatory. The only procedural irregularity was the failure to provide written reasons for the appeal decision, which did not result in material prejudice to the employee. The arbitrator incorrectly applied the unamended section 194 of the LRA, failing to exercise proper discretion as required by the amended section. The Court exercised its discretion to set aside the compensation award, finding that no compensation was warranted under the circumstances.

Court Disposition

Application to review and set aside the arbitration award is granted. The compensation award is set aside and substituted with a finding that the dismissal was both substantively and procedurally fair.

Orders

  • The arbitration award issued by the second respondent on 25 August 2002 is set aside with costs.
  • It is ordered that the third respondent's dismissal is substantially and procedurally fair.