Back to: Introduction to the Labour Relations Act (LRA)
8.2 Disputes and Remedies
When a dispute arises regarding an alleged unfair dismissal, the employee or the trade union representing the employee may refer the dispute to the Commission for Conciliation, Mediation, and Arbitration (CCMA) within 30 days of the dismissal. The CCMA will attempt to resolve the dispute through conciliation.
If conciliation fails, the employee may refer the dispute to arbitration, where a commissioner will make a binding decision on the matter. Alternatively, the employee may refer the dispute to the Labour Court for adjudication if the dismissal falls within specific categories, such as automatically unfair dismissals or dismissals based on operational requirements.
The Labour Relations Act provides various remedies for unfair dismissal. These remedies include reinstatement, re-employment, and compensation.
Reinstatement involves returning the employee to their previous position as if the dismissal never occurred. This is the preferred remedy in cases of unfair dismissal, as it restores the employment relationship and rectifies the unfair action.
Re-employment involves offering the employee a new position, which may be different from their previous role. This remedy is appropriate when reinstatement is not feasible, but there is still an opportunity for the employee to continue working for the employer.
Compensation is awarded when reinstatement or re-employment is not appropriate or practical. The amount of compensation is determined based on various factors, including the employee’s length of service, the nature of the dismissal, and the impact on the employee. Compensation for automatically unfair dismissals is capped at 24 months’ remuneration, while compensation for other types of unfair dismissals is capped at 12 months’ remuneration.