Strado Remanufacturing (Pty) Ltd v Diphoko N.O and Others (JA 103/23) [2025] ZALAC 19; [2025] 6 BLLR 576 (LAC) (20 March 2025)

Strado Remanufacturing (Pty) Ltd v Diphoko N.O and Others (JA 103/23) [2025] ZALAC 19; [2025] 6 BLLR 576 (LAC) (20 March 2025)

The Labour Appeal Court found that the arbitrator failed to consider material evidence, including prior inconsistent statements by the employee and corroboration by other witnesses, which directly affected credibility. The arbitrator's conclusion that no instruction was given was unreasonable on the probabilities. The Labour Court erred in upholding the award. On sanction, the Court held that dismissal for insubordination was disproportionate given the employee's long service and lack of prior disciplinary record. A final written warning was appropriate, and reinstatement should be ordered without retrospective effect, subject to conditions facilitating orderly return to work.

Citation
[2025] ZALAC 19
Parties
Appellant: Strado Remanufacturing (Pty) Ltd; Respondent: Same Diphoko N.O; Respondent: The Dispute Resolution Centre for the Motor Industries Bargaining Council; Respondent: NASECGWU obo Sabtha Andrew Matlala
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
20 March 2025
Case Number
JA 103/23
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment Dismissing Review of Arbitration Award
Outcome
Appeal upheld. Labour Court judgment set aside. Arbitration award reviewed and set aside. Employee reinstated with final written warning for insubordination, without retrospective effect.
Judges
Savage, Sutherland, Davis
Legal Topics
Unfair Dismissal, Insubordination, Arbitration Review, Reinstatement, Disciplinary Sanctions
Labour Law Civil Procedure Unfair Dismissal Insubordination Arbitration Review Reinstatement Disciplinary Sanctions

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 3 Party arguments 2
Sign in to unlock

Parties

Strado Remanufacturing (Pty) Ltd

Appellant

Same Diphoko N.O

Respondent

The Dispute Resolution Centre for the Motor Industries Bargaining Council

Respondent

NASECGWU obo Sabtha Andrew Matlala

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment Dismissing Review of Arbitration Award

Legal Issues

  1. 1 Was there a reasonable basis for the arbitrator's finding that no instruction was given to the employee?
  2. 2 Did the arbitrator fail to consider material evidence affecting credibility?
  3. 3 Is dismissal for insubordination an appropriate sanction in the circumstances?

Ratio Decidendi

The Labour Appeal Court found that the arbitrator failed to consider material evidence, including prior inconsistent statements by the employee and corroboration by other witnesses, which directly affected credibility. The arbitrator's conclusion that no instruction was given was unreasonable on the probabilities. The Labour Court erred in upholding the award. On sanction, the Court held that dismissal for insubordination was disproportionate given the employee's long service and lack of prior disciplinary record. A final written warning was appropriate, and reinstatement should be ordered without retrospective effect, subject to conditions facilitating orderly return to work.

Court Disposition

Appeal upheld. Labour Court judgment set aside. Arbitration award reviewed and set aside. Employee reinstated with final written warning for insubordination, without retrospective effect.

Orders

  • The appeal is upheld with no order as to costs.
  • The judgment of the Labour Court is set aside and substituted with: (1) The arbitration award is reviewed and set aside; (2) Mr Matlala is reinstated on these terms: (2.1) A final written warning for insubordination is issued in accordance with the disciplinary code; (2.2) Reinstatement shall take effect from the...