MRL3702 PORTIFOLIO SEP/NOV 2021
ALL QUESTIONS COVERED
CASE LAW, LEGISLATION PROVIDED AS REFERENCE
, Question 1
1.1
a) The ground of dismissal in question would be for “Operational requirements”,
A 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. The terms ‘operational requirements’
is defined in the LRA and the definition distinguished four broad categories of operational requirements:
• economic needs
• technological needs
• structural needs, and
• similar needs
An employer’s economic needs relate to the financial management of the enterprise including
Financial difficulties experienced by the business as a result of changes in the market, a decrease in
production itself, in government subsidies or the cost implications of compliance with the BCEA.
Kotze v Rebel Discount Liquor Group (Pty) Ltd
It was stated that the court should not ‘second guess’ the employer’s commercial reasons for taking a
specific decision to retrench employees. In later decisions the court adopted a stricter approach and held
that the employer’s version will not merely be accepted on face value. Rather, the court itself should
determine whether retrenchment had a reasonable basis and the commercial rationale. In a later judgment,
the court held that the retrenchment should remain a matter of last resort.
b)
i. If a dismissal is large-scale dismissal as described in S189A LRA then the provisions of
this section as well as Section 189 apply. The application of S189A depends on two factors:
1. The number of employees employed by the employer; and
ALL QUESTIONS COVERED
CASE LAW, LEGISLATION PROVIDED AS REFERENCE
, Question 1
1.1
a) The ground of dismissal in question would be for “Operational requirements”,
A 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. The terms ‘operational requirements’
is defined in the LRA and the definition distinguished four broad categories of operational requirements:
• economic needs
• technological needs
• structural needs, and
• similar needs
An employer’s economic needs relate to the financial management of the enterprise including
Financial difficulties experienced by the business as a result of changes in the market, a decrease in
production itself, in government subsidies or the cost implications of compliance with the BCEA.
Kotze v Rebel Discount Liquor Group (Pty) Ltd
It was stated that the court should not ‘second guess’ the employer’s commercial reasons for taking a
specific decision to retrench employees. In later decisions the court adopted a stricter approach and held
that the employer’s version will not merely be accepted on face value. Rather, the court itself should
determine whether retrenchment had a reasonable basis and the commercial rationale. In a later judgment,
the court held that the retrenchment should remain a matter of last resort.
b)
i. If a dismissal is large-scale dismissal as described in S189A LRA then the provisions of
this section as well as Section 189 apply. The application of S189A depends on two factors:
1. The number of employees employed by the employer; and
