Abstract

This article explores the concept of the automatic unfair dismissal that is regulated in s 187(1)(c) of the Labour Relations Act, where the reason for the dismissal is to "compel the employee to accept a demand in respect of any matter of mutual interest". This provision raised important questions of law, as it brought to the fore the conflict that existed between this provision and sections 188(1)(a)(ii) and 189 of the LRA, which permits dismissals for operational requirements. This dichotomy was dealt with by the court in Fry's Metals, but the decision was controversial and faced criticism. The decision of the court was consequently rendered incorrect, resulting in the amendment to s 187(1)(c), which now reads that a dismissal is automatically unfair if the reason for the dismissal is a refusal by employees to accept a demand in respect of any matter of mutual interest between them and their employer. However, it is doubtful whether the amended provision provides a solution to the contradiction that exists. Resultantly, this article seeks to critique the amendment and to make recommendations regarding the regulation of this part of labour law.

Highlights

  • The section of labour law where the definition of "automatically unfair dismissal",1 the employer's right to terminate contracts of employment on the ground of operational requirements2 and the institution of collective bargaining overlap, creates controversial legal ground.3After South Africa's first democratic elections, the Cheadle Task Team included the definition of an "automatic unfair dismissal" in the Labour Relations Act 66 of 1995 ("the Labour Relations Act of 1995 (LRA) of 1995")

  • This article explores the concept of the automatic unfair dismissal that is regulated in s 187(1)(c) of the Labour Relations Act 66 of 1995 (LRA), where the reason for the dismissal is to "compel the employee to accept a demand in respect of any matter of mutual interest"

  • A barrage of criticism was levelled against the way in which this definition of the LRA of 1995 was interpreted by the Labour Appeal Court5 ("the LAC") and the Supreme Court of Appeal6 ("the SCA") in the Fry's Metals cases

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Summary

Introduction

The section of labour law where the definition of "automatically unfair dismissal",1 the employer's right to terminate contracts of employment on the ground of operational requirements and the institution of collective bargaining overlap, creates controversial legal ground.. The authors argue that it is doubtful that the amendment of section 187(1)(c) of the LRA of 1995 provides the appropriate solution to the on-going contradictions referred to below. This contribution seeks to unravel this minefield of uncertainty, to critique the recent amendment and to make recommendations regarding the regulation of this aspect of labour law

Salient aspects of the LRA
The Memorandum of Objects
Understanding the dichotomy
The Labour Relations Amendment Act of 2014
77 Memorandum of Objects
Can an employer still dismiss for operational requirements?
The appropriate test and concluding remarks
Literature
Full Text
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