©SOPHIABENNETT
EXAM_SOLUTIONS GUARANTEED SUCCESS 2024/2025 ACADEMIC YEAR
©SOPHIABENNETT 9/3/24 2024/2025
, ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM
MRL 3702 STUDY UNIT 7 - FAIR &
UNFAIR DISMISSAL AND DISPUTE
RESOLUTION EXAM STUDY GUIDE
DISMISSAL BASED ON OPERATIONAL REASONS - Answer✔️✔️-Dismissal based on
operational reasons is regarded as a "no fault" dismissal because the termination does
not result from the actions or fault of the employee.
FOUR BROAD CATEGORIES OF OPERATIONAL REQUIREMENTS - Answer✔️✔️-1.
Economic needs
2. Technological needs
3. structural needs
4. similar needs
TECHNOLOGICAL NEEDS - Answer✔️✔️-Refer to the introduction of new technology,
for example, machinery / computers that lead to the redundancy of employees;
STRUCTURAL NEEDS - Answer✔️✔️-Relate to the redundancy of posts consequent to
the restructuring of an employer's enterprise, which might be, for example, as a result of
a merger.
SIMILAR NEEDS - Answer✔️✔️-constitutes a broad category that has to be determined
with reference to the specific circumstances of each case. - examples - incompatibility
and breakdown in the trust relationship.
Page | 1
, ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM
NUMBER OF EMPLOYEES AFFECTED AND OPERATIONAL REASONS -
Answer✔️✔️-- big and small employers
- large- and small-scale retrenchments
BIG EMPLOYER - Answer✔️✔️-- employs more that 50 employees
SMALL EMPLOYER - Answer✔️✔️-- employer that employs fewer than 50 employees
LARGE-SCALE RETRENCHMENT - Answer✔️✔️-1. employer employs more than 50 but
not more than 200 employees and 10 employees are dismissed; or
2. the employer employs more than 200, but not more than 300 employees, and 20
employees are dismissed, or
3. the employer employs more than 300, but not more than 400 employees, and 30
employees are dismissed, or
4. the employer employs more than 400, but not more than 500 employees, and 40
employees are dismissed, or
5. the employer employs more than 500 employees, and 50 employees are dismissed.
SUBSTANTIVE FAIRNESS - Answer✔️✔️-In context will mean that the employer must
truly have a economical, technological, structural or similar need to dismiss employees.
KOTZE v REBEL DISCOUNT LIQUOR GROUP PTY LTD - Answer✔️✔️-- court should
not "second guess" the employers commercial reasons for taking a specific decision to
retrench employees.
- later decisions courts adopted a stricter approach and held that employers version
would not merely be accepted on face value.
- Court itself should determine whether retrenchment has a reasonable basis and
commercial rationale.
Page | 2
EXAM_SOLUTIONS GUARANTEED SUCCESS 2024/2025 ACADEMIC YEAR
©SOPHIABENNETT 9/3/24 2024/2025
, ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM
MRL 3702 STUDY UNIT 7 - FAIR &
UNFAIR DISMISSAL AND DISPUTE
RESOLUTION EXAM STUDY GUIDE
DISMISSAL BASED ON OPERATIONAL REASONS - Answer✔️✔️-Dismissal based on
operational reasons is regarded as a "no fault" dismissal because the termination does
not result from the actions or fault of the employee.
FOUR BROAD CATEGORIES OF OPERATIONAL REQUIREMENTS - Answer✔️✔️-1.
Economic needs
2. Technological needs
3. structural needs
4. similar needs
TECHNOLOGICAL NEEDS - Answer✔️✔️-Refer to the introduction of new technology,
for example, machinery / computers that lead to the redundancy of employees;
STRUCTURAL NEEDS - Answer✔️✔️-Relate to the redundancy of posts consequent to
the restructuring of an employer's enterprise, which might be, for example, as a result of
a merger.
SIMILAR NEEDS - Answer✔️✔️-constitutes a broad category that has to be determined
with reference to the specific circumstances of each case. - examples - incompatibility
and breakdown in the trust relationship.
Page | 1
, ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM
NUMBER OF EMPLOYEES AFFECTED AND OPERATIONAL REASONS -
Answer✔️✔️-- big and small employers
- large- and small-scale retrenchments
BIG EMPLOYER - Answer✔️✔️-- employs more that 50 employees
SMALL EMPLOYER - Answer✔️✔️-- employer that employs fewer than 50 employees
LARGE-SCALE RETRENCHMENT - Answer✔️✔️-1. employer employs more than 50 but
not more than 200 employees and 10 employees are dismissed; or
2. the employer employs more than 200, but not more than 300 employees, and 20
employees are dismissed, or
3. the employer employs more than 300, but not more than 400 employees, and 30
employees are dismissed, or
4. the employer employs more than 400, but not more than 500 employees, and 40
employees are dismissed, or
5. the employer employs more than 500 employees, and 50 employees are dismissed.
SUBSTANTIVE FAIRNESS - Answer✔️✔️-In context will mean that the employer must
truly have a economical, technological, structural or similar need to dismiss employees.
KOTZE v REBEL DISCOUNT LIQUOR GROUP PTY LTD - Answer✔️✔️-- court should
not "second guess" the employers commercial reasons for taking a specific decision to
retrench employees.
- later decisions courts adopted a stricter approach and held that employers version
would not merely be accepted on face value.
- Court itself should determine whether retrenchment has a reasonable basis and
commercial rationale.
Page | 2
