Mercantile Law 311
(Labour Law) notes
Compiled by Mari Louw in 2021. DO NOT DISTRIBUTE.
MARIA MAGDALENA Louw 22862439
, 1
Contents
Introduction................................................................................................................................6
Fundamental challenge:..........................................................................................................6
How legislation imposes fairness on the employment relationship – 5 mechanisms............7
Sources of labour law:............................................................................................................7
The Constitution:....................................................................................................................8
Case Law..............................................................................................................................10
Fedlife Assurance v Wolfaardt (2002) (SCA) (not prescr):.............................................10
Baloyi v Public Protector 2020 (CC) (prescr):.................................................................11
Old Mutual v Moyo 2020 (prescr):..................................................................................14
Pretorius v Transport Pension Fund 2018 (CC) (prescr):.................................................16
Contracts and Terms and Conditions of Employment............................................................18
Sources of terms and conditions and their interaction.........................................................19
Contractual terms.................................................................................................................20
Naturalia of the contract...................................................................................................21
Variation of terms and conditions of employment...........................................................22
Applicable common law principles......................................................................................23
Common law remedies for breach of contract and termination:......................................25
Scenario with possible remedies..........................................................................................26
Labour Legislation – NMWA and BCEA................................................................................29
Basic Conditions of Employment Act 1997.........................................................................29
Variation of basic conditions of employment..................................................................30
Were they an employee?..........................................................................................................32
General.................................................................................................................................32
Definition of employee.........................................................................................................32
Employees and independent contractors..............................................................................34
, 2
Common law tests used by courts to distinguish between them:.....................................34
Statutory presumption......................................................................................................36
The changing nature of work................................................................................................37
Temporary Employment Services:...................................................................................37
Fixed Term Employees........................................................................................................42
(Part-time employees)..........................................................................................................45
Was there a dismissal?.............................................................................................................47
Overview..............................................................................................................................47
6 Types of dismissal in LRA................................................................................................49
With or without notice - S186(1)(a).................................................................................49
Failure to renew a fixed term contract - s186(1)(b):........................................................52
Pregnancy - S186(1)(c):...................................................................................................57
Selective non-reemployment - S186(1)(d):......................................................................57
Constructive dismissal – s186(1)(e):................................................................................58
Transfer of a business – S186(1)(f):.................................................................................62
Was the dismissal unfair?.........................................................................................................63
Limits on compensation:......................................................................................................63
S187 – automatically unfair dismissal..................................................................................63
S5 LRA infringement freedom of association..................................................................65
S187(1)(a) LRA participation in a protected strike..........................................................66
S187(1)(b) refusal to do the work of a protected striker:.................................................68
S187(1)(c) LRA dismissal for refusal to accept a demand about a matter of mutual
interest:.............................................................................................................................68
S187(1)(d) exercise of rights............................................................................................76
S187(1)(e) pregnancy.......................................................................................................77
S187(1)(f) unfair discrimination......................................................................................77
S87(1)(g) transfer as a going concern..............................................................................81
, 3
PDA of 2000: Protected disclosure..................................................................................82
Potentially fair dismissals.........................................................................................................83
Incapacity:............................................................................................................................83
1) Poor work performance................................................................................................84
2) Medical incapacity (based on ill health and injury).....................................................95
Misconduct...........................................................................................................................99
Overview of the disciplinary process.............................................................................100
Substantive fairness of a dismissal for misconduct........................................................101
Procedural fairness of a dismissal for misconduct.........................................................116
Dismissal for operational requirements..............................................................................120
Distinction between small/ordinary and large-scale retrenchments...............................121
Requirements for substantive fairness:...........................................................................123
Requirements for procedural fairness:...........................................................................125
Employment equity and affirmative action............................................................................131
constitutional framework:...................................................................................................132
Unfair discrimination.....................................................................................................132
Affirmative action..........................................................................................................134
Interaction between AA and unfair discrimination:.......................................................142
Unfair discrimination in terms of the Employment Equity Act 1998................................143
Amendments to EEA in 2014:........................................................................................143
Unfair discrimination overview:....................................................................................144
S6(1) EEA: basic prohibition on unfair discrimination:................................................144
Unfair labour practices:..........................................................................................................158
Promotion:..........................................................................................................................158
Substantive and procedural fairness of failure to promote:............................................159
Demotion:...........................................................................................................................161
Benefits:..............................................................................................................................161
(Labour Law) notes
Compiled by Mari Louw in 2021. DO NOT DISTRIBUTE.
MARIA MAGDALENA Louw 22862439
, 1
Contents
Introduction................................................................................................................................6
Fundamental challenge:..........................................................................................................6
How legislation imposes fairness on the employment relationship – 5 mechanisms............7
Sources of labour law:............................................................................................................7
The Constitution:....................................................................................................................8
Case Law..............................................................................................................................10
Fedlife Assurance v Wolfaardt (2002) (SCA) (not prescr):.............................................10
Baloyi v Public Protector 2020 (CC) (prescr):.................................................................11
Old Mutual v Moyo 2020 (prescr):..................................................................................14
Pretorius v Transport Pension Fund 2018 (CC) (prescr):.................................................16
Contracts and Terms and Conditions of Employment............................................................18
Sources of terms and conditions and their interaction.........................................................19
Contractual terms.................................................................................................................20
Naturalia of the contract...................................................................................................21
Variation of terms and conditions of employment...........................................................22
Applicable common law principles......................................................................................23
Common law remedies for breach of contract and termination:......................................25
Scenario with possible remedies..........................................................................................26
Labour Legislation – NMWA and BCEA................................................................................29
Basic Conditions of Employment Act 1997.........................................................................29
Variation of basic conditions of employment..................................................................30
Were they an employee?..........................................................................................................32
General.................................................................................................................................32
Definition of employee.........................................................................................................32
Employees and independent contractors..............................................................................34
, 2
Common law tests used by courts to distinguish between them:.....................................34
Statutory presumption......................................................................................................36
The changing nature of work................................................................................................37
Temporary Employment Services:...................................................................................37
Fixed Term Employees........................................................................................................42
(Part-time employees)..........................................................................................................45
Was there a dismissal?.............................................................................................................47
Overview..............................................................................................................................47
6 Types of dismissal in LRA................................................................................................49
With or without notice - S186(1)(a).................................................................................49
Failure to renew a fixed term contract - s186(1)(b):........................................................52
Pregnancy - S186(1)(c):...................................................................................................57
Selective non-reemployment - S186(1)(d):......................................................................57
Constructive dismissal – s186(1)(e):................................................................................58
Transfer of a business – S186(1)(f):.................................................................................62
Was the dismissal unfair?.........................................................................................................63
Limits on compensation:......................................................................................................63
S187 – automatically unfair dismissal..................................................................................63
S5 LRA infringement freedom of association..................................................................65
S187(1)(a) LRA participation in a protected strike..........................................................66
S187(1)(b) refusal to do the work of a protected striker:.................................................68
S187(1)(c) LRA dismissal for refusal to accept a demand about a matter of mutual
interest:.............................................................................................................................68
S187(1)(d) exercise of rights............................................................................................76
S187(1)(e) pregnancy.......................................................................................................77
S187(1)(f) unfair discrimination......................................................................................77
S87(1)(g) transfer as a going concern..............................................................................81
, 3
PDA of 2000: Protected disclosure..................................................................................82
Potentially fair dismissals.........................................................................................................83
Incapacity:............................................................................................................................83
1) Poor work performance................................................................................................84
2) Medical incapacity (based on ill health and injury).....................................................95
Misconduct...........................................................................................................................99
Overview of the disciplinary process.............................................................................100
Substantive fairness of a dismissal for misconduct........................................................101
Procedural fairness of a dismissal for misconduct.........................................................116
Dismissal for operational requirements..............................................................................120
Distinction between small/ordinary and large-scale retrenchments...............................121
Requirements for substantive fairness:...........................................................................123
Requirements for procedural fairness:...........................................................................125
Employment equity and affirmative action............................................................................131
constitutional framework:...................................................................................................132
Unfair discrimination.....................................................................................................132
Affirmative action..........................................................................................................134
Interaction between AA and unfair discrimination:.......................................................142
Unfair discrimination in terms of the Employment Equity Act 1998................................143
Amendments to EEA in 2014:........................................................................................143
Unfair discrimination overview:....................................................................................144
S6(1) EEA: basic prohibition on unfair discrimination:................................................144
Unfair labour practices:..........................................................................................................158
Promotion:..........................................................................................................................158
Substantive and procedural fairness of failure to promote:............................................159
Demotion:...........................................................................................................................161
Benefits:..............................................................................................................................161
