Labour Relations Act, 1995 (Act No. 66 of 1995)

Codes of Good Practice

Dismissal based on Operational Requirements

Schedule 8

Part C - Fair Dismissal

5. Fairness

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(1)A dismissal is fair if it is for a fair reason and in accordance with a fair procedure.

 

(2)The Act lists three grounds on which a dismissal may be fair. These are: the conduct of the employee, the capacity of the employee, and the employer's operational requirements. 1

 

(3)The Act provides that a dismissal is automatically unfair if the reason for the dismissal infringes the rights of employees and trade unions or if the reason is one of those listed in section 187. These reasons include participation in a protected strike, pregnancy or acts of discrimination.

 

(4)In cases where the dismissal is not automatically unfair, the employer must show that the dismissal was for a fair reason and in accordance with a fair procedure.

 

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1Operational requirements refer to the business reasons for retrenching an employee.
2Graduated disciplinary measures may, depending on the circumstances, include counselling, warnings, suspension, and a final warning.