Except where the reason for termination of employment relates to gross misconduct (material breach of contract) employers should be encouraged to adopt a holistic approach and pay notice pay, and even some form of ‘severance pay’.
Here are some cryptic thoughts on the proposed amendments. A sincere attempt needs to be made to achieve a proper balance between various interest groups. There should be as little interference as possible with the rights of employers whilst protecting the rights of employees.
Termination of employment involves a –
- Reason that is lawful, legitimate (valid) and fair.
- Procedure that ensures that employees have a right to be heard.
When resolving ‘dismissal’ disputes there is a need to balance interests of –
- the employees;
- the business; and
- unemployed job-seekers.
It is submitted that when the law is properly understood and interpreted, employers will be able to resolve many more ‘dismissal’ disputes internally and avoid wasting money on unnecessary legal costs and ‘settlements’.
To keep this note brief it is not intended to deal with –
- internal procedures/investigations that need to be less formal; and
- the need for management to respect the dignity of employees by using language that does not suggests that employees are ‘criminals’.
Change to divorce law in 1979
In SA before 1979 a divorce could only be granted on clear proof of ‘fault’ (desertion or adultery). On such proof the marriage contract was cancelled (decree of divorce granted) and the ‘innocent’ party automatically forfeited all rights to the benefits of the marriage. A clear case of ‘all or nothing’. Alas the same approach is being adopted today with dismissals.
Fortunately the divorce law was changed by statute in 1979. Ironically the Wiehahn Commission reported in the same year and the concept of fairness was introduced. It seems that this resulted in the adoption of an ‘all or nothing’ approach in clear contradiction with the ILO Convention of 1982 that clearly splits the issue into two parts (#1 reason to terminate and #2 employee’s forfeiture or certain rights).
Adoption of holistic approach
Since 1979 ‘marriage contracts’ can be terminated on proof of irretrievable breakdown; fault is only relevant to the division of assets, etc. This change of approach must have resulted in millions of Rand being saved in legal fees and fees for private investigators.
A similar balance can be achieved by properly interpreting and applying the clear purpose of the ILO Convention, our common law, the LRA and BCEA. Importantly the LRA uses the word ‘conduct’ and not ‘misconduct’ and ‘capacity’ not ‘incapacity’.
Relevance of fault
Nowhere in our law is ‘fault’ a requirement to terminate the employment of employees in the private or public service. Contrast this with the requirement of ‘gross misconduct’ to terminate the appointment of a judge. Fault is only really relevant as to whether or not notice of termination has to be given by the employer under the common law or the BCEA. The LRA does not even mention notice of termination.
Reason related to conduct (trust) or capacity (confidence)
As is well-known under the LRA employers may only terminate employment on proof of a fair procedure (s189 or the Code) and a reason that is –
- Lawful (on notice unless there is a cause recognised by law – material breach and not just any form of ‘misconduct’).
- Legitimate or valid (related to conduct or capacity or based on operational requirements)
- fair (capacity, such as poor performance that effectively destroys the confidence relationship or conduct, such as dishonesty that destroys the trust relationship – sometimes referred to as intolerability).
Business Day was the first to publish a report by Alistair Anderson today – Minister wants finality on labour bills.
“Labour Minister wants controversial labour law amendments to be finalised and implemented by the end of May next year”.
It seems that any amendments will not come into force before the middle of 2012.
With the kind permission of Business Day here are some extracts from the report.
“LABOUR Minister Mildred Oliphant yesterday pressed the government, labour and business representatives to finalise the prolonged and controversial labour law amendments and enact them by the end of May next year”.
“The bills, which include a proposal to criminalise labour broking and another to limit temporary employment, were proposed last December. Their definition of temporary work, employment equity rules and other ambiguities upset business, and the process of finalising them has stalled”.
“Ms Oliphant said she wanted the work, which is before the National Economic Development and Labour Council (Nedlac), to be wrapped up by the end of this month”.
“’In this regard the ministry would still want to go back to Cabinet in November and possibly be ready to table the bills in Parliament still in this session. The minister expects that the entire process should be finished by May next year — signed into law,’ said Department of Labour spokesman Musa Zondi”.
“The Labour Relations Amendment Bill states “an employee must be employed permanently unless the employer can establish a justification for employment on a fixed term”. This limits temporary work”.
“The Basic Conditions of Employment Bill makes it a crime for employers not to pay wages and overtime. The Employment Equity Amendment Bill will require that equal pay be paid for equal value, with contraventions subject to penalties ranging from 2%-10% of turnover. Business feels that this is vague and that the penalty is excessive in any case”.
“The Public Employment Services Bill is new legislation and not an amendment. It seeks to outlaw labour broking by making it illegal for brokers to be responsible for workers they have placed with a third-party company”.
“Yesterday, business, labour and government representatives would not say if they were closer to agreeing on the touchiest aspects of the bills. But Business Unity SA (Busa) said it was confident progress was being made”.