These notes combine the textbook(The New Essential Labour Law Handbook), the relevant legislation (the LRA, the EEA, the BCEA), as well as case law.
The summaries are thorough, neat, and well-organised
Labour Law 311 Comprehensive Notes Summary
Table of Contents
Topic 1: INTRODUCTION TO LABOUR LAW..........................................................................2
Topic 2: CONTRACT.............................................................................................................8
THE CONTRACT AS A SOURCE OF TERMS AND CONDITIONS OF EMPLOYMENT...........................10
A) Contractual terms (common law).............................................................................................................11
B)The legislation............................................................................................................................................20
Topic 3: THE EMPLOYEE....................................................................................................25
Introduction................................................................................................................................25
Definition of employee...............................................................................................................26
Employees and independent contracts.......................................................................................29
The statutory presumption.........................................................................................................33
Changing nature of work: atypical employment relationships....................................................34
Regulation of atypical employment (Non standard employment)...............................................................35
Topic 5: DISMISSAL...........................................................................................................42
S188 of LRA.................................................................................................................................42
Meaning of Dismissal..................................................................................................................44
Topic 6: automatic unfair dismissal..................................................................................57
Topic 7: Dismissal for INCAPACITY....................................................................................67
Poor performance.......................................................................................................................68
Ill health and injury.....................................................................................................................76
Topic 8: dismissal for MISCONDUCT (start of EXAM).........................................................81
Misconduct- overview of process................................................................................................82
Substantive fairness (7.4)............................................................................................................83
1. Substantive fairness: contravention of the rule........................................................................................84
2 Substantive fairness- validity and reasonableness of rule.........................................................................85
3 Substantive fairness- knowledge of the rule..............................................................................................85
4 Substantive fairness- consistency...............................................................................................................85
5 Substantive fairness: dismissal as an appropriate sanction.......................................................................87
Misconduct- procedural fairness.................................................................................................91
Prescribed Cases:........................................................................................................................91
Chapter 9: dismissal for operational requirements...........................................................94
Terminology................................................................................................................................94
Similar needs of the employer....................................................................................................95
Substantive fairness....................................................................................................................97
Procedural fairness.....................................................................................................................99
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, Labour LAW 311 summaries
“Retrenchment”: Distinction between small scale and large-scale dismissal.............................102
Topic 10 unfair discrimination and affirmative action.....................................................105
The constitutional framework...................................................................................................105
Unfair discrimination: EEA........................................................................................................109
Basic prohibition section 6(1) of the EEA....................................................................................................109
Understanding unfair discrimination (NB structured approach to this question)......................................110
Defeating a discrimination case: NB............................................................................................................112
Section 11: onus provisions.........................................................................................................................112
Justification grounds s6(2):..........................................................................................................................113
General fairness defence?...........................................................................................................................114
Forms of discrimination...............................................................................................................................115
Dispute resolution....................................................................................................................116
Affirmative Action ito the EEA:..................................................................................................117
Chapter 11: Unfair labour practices................................................................................127
Introduction..............................................................................................................................127
ULP- the list...............................................................................................................................128
“Promotion”................................................................................................................................................128
Demotion.....................................................................................................................................................132
Benefits........................................................................................................................................................132
Suspension...................................................................................................................................................135
ULP: remedies...........................................................................................................................136
Chapter 21: labour dispute resolution.............................................................................138
Different causes of action.........................................................................................................138
Disputes of right in terms of the LRA.........................................................................................140
Jurisdiction based on true nature of dispute.............................................................................140
Conciliation...............................................................................................................................141
Arbitration (BC/ CCMA).............................................................................................................141
Adjudication.............................................................................................................................142
Labour court adjudication...........................................................................................................................142
Powers of labour court................................................................................................................................143
Review of arbitration awards (NB!)...........................................................................................143
Dispute resolution- unfair dismissal and ULP............................................................................148
Remedies: dismissal..................................................................................................................148
2
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, Labour LAW 311 summaries
Topic 1: INTRODUCTION TO LABOUR LAW
Fundamental problem
- Before labour law the employment relationship was only regulated
by the employment contract.
- The contract of employment is not the best legal construct to be in
charge of this employment relationship.
- Deficiencies of the common law regulation (law of contract)
o Power differential = risk of exploitation/actual exploitation (no
bargaining power)
o Termination on notice: Irrespective of the reason, as long as
you give the needed notice then you may terminate the
contract.
o Frozen in time: The contract does not cater for growth and
expectations unless renegotiated.
o Individualised: Does not recognize the collective
dimensions/shared concerns
o Traditionally enforced through civil courts which do not
understand labour relations dynamics = fairness and
lawfulness.
- So the story of labour law is the story of the use of legislation to
force fairness onto the individual employment relationship
(contract). Labour law is largely based on legislation. = Contract of
employment + legislation.
- Legislation overrides the contract, it enforces fairness on the
contract.
How does legislation impose fairness on the employment
relationship?
THE TRILOGY: Labour relations act + (basic conditions of
employment + national minimum wage act) + employment equity
act
5 fairness mechanisms:
1. Promote Fair terms and conditions of employment:
- Directly: BCEA/NMWA (minimum standards regulation)
1. You cannot agree in a contract to less than what is
prescribed in the act. This legislation interferes directly
in the agreement.
- Indirectly: the LRA promotes collective bargaining (LRA) –
recognition of freedom of association, trade union
organizational rights. The right to strike, the effect of
collective agreements.
3
3/143
, Labour LAW 311 summaries
1. The law says we will recognise the employees’
freedom of association.
2. Workers have the constitutional right to strike-
basically economic warfare.
3. The individual contract is between the employee and
employer, but the employer has more power. But
through bargaining you equalize the power.
4. There is no right to a wage increase, it is simply an
interest of the trade union on behalf of the employees.
5. Trade unions bargain about the interest, they try to
convert those interests into rights.
2. Protection against unfair dismissal (LRA)
- To allow an employer to end a contract simply by giving
notice, does not protect job security.
- This is done by giving an expanded definition of dismissal.
- The LRA says the dismissal will only be fair if that dismissal is
substantively fair and is procedurally correct.
- In our law there is only three reasons:
1. Misconduct
2. Incapacity
3. Operational requirements
3. Protect against residual unfair labour practices (LRA)
4. Protection against unfair discrimination (EEA)
5. Tailor-made fairness dispute resolution institutions (LRA)
- Distinction: Disputes of rights and disputes of interests.
- Disputes of interest = collective bargaining. Tries to create a
right.
- Disputes of rights = CCMA/Bargaining council/ labour court (all
disputes first have to be conciliated, then only either
arbitration/adjudication. Here the rights already exist.
- Very few contractual disputes go the route of going to court.
Old Mutual Ltd and others v Moyo and another:
(Use of contractual remedy instead of labour legislation; relationship
between contract law and legislation; contractual remedies)
4
4/143
The summaries are thorough, neat, and well-organised
Labour Law 311 Comprehensive Notes Summary
Table of Contents
Topic 1: INTRODUCTION TO LABOUR LAW..........................................................................2
Topic 2: CONTRACT.............................................................................................................8
THE CONTRACT AS A SOURCE OF TERMS AND CONDITIONS OF EMPLOYMENT...........................10
A) Contractual terms (common law).............................................................................................................11
B)The legislation............................................................................................................................................20
Topic 3: THE EMPLOYEE....................................................................................................25
Introduction................................................................................................................................25
Definition of employee...............................................................................................................26
Employees and independent contracts.......................................................................................29
The statutory presumption.........................................................................................................33
Changing nature of work: atypical employment relationships....................................................34
Regulation of atypical employment (Non standard employment)...............................................................35
Topic 5: DISMISSAL...........................................................................................................42
S188 of LRA.................................................................................................................................42
Meaning of Dismissal..................................................................................................................44
Topic 6: automatic unfair dismissal..................................................................................57
Topic 7: Dismissal for INCAPACITY....................................................................................67
Poor performance.......................................................................................................................68
Ill health and injury.....................................................................................................................76
Topic 8: dismissal for MISCONDUCT (start of EXAM).........................................................81
Misconduct- overview of process................................................................................................82
Substantive fairness (7.4)............................................................................................................83
1. Substantive fairness: contravention of the rule........................................................................................84
2 Substantive fairness- validity and reasonableness of rule.........................................................................85
3 Substantive fairness- knowledge of the rule..............................................................................................85
4 Substantive fairness- consistency...............................................................................................................85
5 Substantive fairness: dismissal as an appropriate sanction.......................................................................87
Misconduct- procedural fairness.................................................................................................91
Prescribed Cases:........................................................................................................................91
Chapter 9: dismissal for operational requirements...........................................................94
Terminology................................................................................................................................94
Similar needs of the employer....................................................................................................95
Substantive fairness....................................................................................................................97
Procedural fairness.....................................................................................................................99
1
1/143
, Labour LAW 311 summaries
“Retrenchment”: Distinction between small scale and large-scale dismissal.............................102
Topic 10 unfair discrimination and affirmative action.....................................................105
The constitutional framework...................................................................................................105
Unfair discrimination: EEA........................................................................................................109
Basic prohibition section 6(1) of the EEA....................................................................................................109
Understanding unfair discrimination (NB structured approach to this question)......................................110
Defeating a discrimination case: NB............................................................................................................112
Section 11: onus provisions.........................................................................................................................112
Justification grounds s6(2):..........................................................................................................................113
General fairness defence?...........................................................................................................................114
Forms of discrimination...............................................................................................................................115
Dispute resolution....................................................................................................................116
Affirmative Action ito the EEA:..................................................................................................117
Chapter 11: Unfair labour practices................................................................................127
Introduction..............................................................................................................................127
ULP- the list...............................................................................................................................128
“Promotion”................................................................................................................................................128
Demotion.....................................................................................................................................................132
Benefits........................................................................................................................................................132
Suspension...................................................................................................................................................135
ULP: remedies...........................................................................................................................136
Chapter 21: labour dispute resolution.............................................................................138
Different causes of action.........................................................................................................138
Disputes of right in terms of the LRA.........................................................................................140
Jurisdiction based on true nature of dispute.............................................................................140
Conciliation...............................................................................................................................141
Arbitration (BC/ CCMA).............................................................................................................141
Adjudication.............................................................................................................................142
Labour court adjudication...........................................................................................................................142
Powers of labour court................................................................................................................................143
Review of arbitration awards (NB!)...........................................................................................143
Dispute resolution- unfair dismissal and ULP............................................................................148
Remedies: dismissal..................................................................................................................148
2
2/143
, Labour LAW 311 summaries
Topic 1: INTRODUCTION TO LABOUR LAW
Fundamental problem
- Before labour law the employment relationship was only regulated
by the employment contract.
- The contract of employment is not the best legal construct to be in
charge of this employment relationship.
- Deficiencies of the common law regulation (law of contract)
o Power differential = risk of exploitation/actual exploitation (no
bargaining power)
o Termination on notice: Irrespective of the reason, as long as
you give the needed notice then you may terminate the
contract.
o Frozen in time: The contract does not cater for growth and
expectations unless renegotiated.
o Individualised: Does not recognize the collective
dimensions/shared concerns
o Traditionally enforced through civil courts which do not
understand labour relations dynamics = fairness and
lawfulness.
- So the story of labour law is the story of the use of legislation to
force fairness onto the individual employment relationship
(contract). Labour law is largely based on legislation. = Contract of
employment + legislation.
- Legislation overrides the contract, it enforces fairness on the
contract.
How does legislation impose fairness on the employment
relationship?
THE TRILOGY: Labour relations act + (basic conditions of
employment + national minimum wage act) + employment equity
act
5 fairness mechanisms:
1. Promote Fair terms and conditions of employment:
- Directly: BCEA/NMWA (minimum standards regulation)
1. You cannot agree in a contract to less than what is
prescribed in the act. This legislation interferes directly
in the agreement.
- Indirectly: the LRA promotes collective bargaining (LRA) –
recognition of freedom of association, trade union
organizational rights. The right to strike, the effect of
collective agreements.
3
3/143
, Labour LAW 311 summaries
1. The law says we will recognise the employees’
freedom of association.
2. Workers have the constitutional right to strike-
basically economic warfare.
3. The individual contract is between the employee and
employer, but the employer has more power. But
through bargaining you equalize the power.
4. There is no right to a wage increase, it is simply an
interest of the trade union on behalf of the employees.
5. Trade unions bargain about the interest, they try to
convert those interests into rights.
2. Protection against unfair dismissal (LRA)
- To allow an employer to end a contract simply by giving
notice, does not protect job security.
- This is done by giving an expanded definition of dismissal.
- The LRA says the dismissal will only be fair if that dismissal is
substantively fair and is procedurally correct.
- In our law there is only three reasons:
1. Misconduct
2. Incapacity
3. Operational requirements
3. Protect against residual unfair labour practices (LRA)
4. Protection against unfair discrimination (EEA)
5. Tailor-made fairness dispute resolution institutions (LRA)
- Distinction: Disputes of rights and disputes of interests.
- Disputes of interest = collective bargaining. Tries to create a
right.
- Disputes of rights = CCMA/Bargaining council/ labour court (all
disputes first have to be conciliated, then only either
arbitration/adjudication. Here the rights already exist.
- Very few contractual disputes go the route of going to court.
Old Mutual Ltd and others v Moyo and another:
(Use of contractual remedy instead of labour legislation; relationship
between contract law and legislation; contractual remedies)
4
4/143
