Substantively Fair Dismissal Case Study

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Introduction:
An employer may dismiss an employee for a fair reason - this means the dismissal is substantively fair and if the employer has followed a fair procedure - the dismissal is procedurally fair.
However, If an employee is dismissed for fair reason but the correct procedure of dismissal was not followed, the dismissal will be UNFAIR.
Section 188 of the Act (Labour Relations Act) stipulates that a dismissal is unfair if the employer fails to prove that the reason for the dismissal is a fair reason based on the misconduct or incapacity of the employee, or is based on the employer's operational requirements, and that the dismissal was effected in accordance with a fair procedure. Persons or Employers considering whether or not the reason for dismissal is of fair reason is in accordance with fair procedure must take into account any relevant Code of Good Practice issued in terms of Schedule 8 of the Act – as discussed here-in:

Substantive Fairness

There are 3 types of FAIR REASON for Substantively Fair Dismissal:
a. Misconduct
Example: an employee intentionally or carelessly breaks a rule at the workplace, e.g. steals company goods
b. Incapacity (if an employee cannot perform duties properly owing to illness, ill health or inability)
c. Operational reasons (if a company has to dismiss employees for reasons which are related to purely business needs and not because of some failing on the part of the employee, example: retrenchment, redundancy).

Substantive Fairness Requirements

1. In relation to Misconduct, the employer must conduct an investigation to determine whether there are grounds for disciplinary action or dismissal.

2. The employer must have sufficient evidence to establish (Prima Facie) proof of the misconduct...

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...on that is final (the parties in conflict don’t reach a decision together like in conciliation).
This decision is called an award. When an arbitrator is appointed to arbitrate over the dispute, he will ask the parties to retell their sides of the dispute.
The disputing parties can bring:
 Documentary evidence
 Call witnesses
 Question each others witnesses
 Give closing arguments
The award granted by the CCMA arbitrator is final and binding and has the same status as an order of court if it is certified by the CCMA director.
No appeal is allowed against an award granted by the arbitrator. If an irregularity has occurred or gross misconduct by the arbitrator or the commissioner is proven a party has six weeks to file for a review in the Labour Court.

Conclusion:
The CCMA’s main obligation is to protect the rights of employees and employers.

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