Department of Agriculture, Rural Development Land and Environmental Affairs v Martin N.O. (JR1275/21) [2025] ZALCJHB 185 (8 May 2025)

57 Reportability

Brief Summary

Labour Law — Review of arbitration award — Review application brought under section 145 of the Labour Relations Act — Applicant sought to substitute arbitration award with a finding of substantive fairness of dismissal or remit for fresh hearing — Employee dismissed for alleged financial misconduct — Commissioner found employee not guilty of one charge but failed to address the second charge — Review court held that the failure to consider the second charge constituted a serious defect in the proceedings — Matter remitted for determination of the second charge.

Comprehensive Summary

Case Note


Department of Agriculture, Rural Development, Land and Environmental Affairs v Sambo, Martin N.O. & Others

Case No: JR1275/21

Heard: 6 May 2025

Delivered: 8 May 2025


Reportability


This case is reportable due to its implications for the interpretation of procedural fairness in disciplinary hearings within the public sector. The judgment highlights the importance of addressing all charges in disciplinary proceedings and the necessity for arbitrators to provide reasoned decisions that meet the standard of reasonableness as established by the Constitutional Court.


Cases Cited



  • Duncanmec (Pty) Ltd v Gaylard NO & others (2018) 39 ILJ 2633 (CC); [2018] 12 BLLR 1137 (CC)

  • Fidelity Cash Management Services v Commission for Conciliation, Mediation and Arbitration and Others [2007] ZALAC 12; (2008) 29 ILJ 964 (LAC)


Legislation Cited



  • Labour Relations Act 66 of 1995, as amended


Rules of Court Cited



  • None cited


HEADNOTE


Summary


The Labour Court reviewed an arbitration award concerning the dismissal of an employee, Stemmer Mlindwa Ndala, for alleged financial misconduct. The court found that while the commissioner correctly ruled on one charge of misconduct, he failed to address a second charge, which constituted a serious procedural irregularity. The court remitted the matter for reconsideration of the second charge.


Key Issues


The key legal issues addressed in this case include the procedural fairness of the disciplinary hearing, the sufficiency of evidence to support the charges against the employee, and the requirement for arbitrators to provide reasoned decisions.


Held


The court held that the review application was partially successful, as the commissioner failed to address the second charge against the employee. The matter was remitted for a fresh hearing on that charge, while the findings regarding the first charge were upheld.


THE FACTS


The applicant, the Department of Agriculture, initiated review proceedings against an arbitration award that found the dismissal of the employee, Ndala, to be unfair. Ndala was dismissed for allegedly mismanaging state finances by causing unauthorized payments and submitting inflated invoices. The arbitration proceedings revealed conflicting evidence regarding the employee's authority to make the payments in question.


THE ISSUES


The court had to decide whether the commissioner had acted fairly and reasonably in his findings regarding the charges against Ndala. Specifically, the court examined whether the commissioner had adequately addressed both charges of misconduct and whether the evidence supported the dismissal.


ANALYSIS


The court analyzed the evidence presented during the arbitration, noting that the commissioner had correctly found Ndala not guilty of the first charge due to a lack of evidence proving that he required prior approval for the payment in question. However, the court criticized the commissioner for failing to analyze the second charge, which was central to the dismissal. This oversight constituted a serious defect in the proceedings, denying the applicant a fair hearing.


REMEDY


The court ordered that the late delivery of the applicant's replying affidavit be condoned. It remitted the unfair dismissal dispute regarding the second charge back to the second respondent for reconsideration, either before the same commissioner or a different one, ensuring that the matter is addressed appropriately.


LEGAL PRINCIPLES


The judgment underscores the principle that arbitrators must provide reasoned decisions that address all charges in disciplinary proceedings. It also reaffirms the standard of reasonableness required in arbitration awards, protecting parties from arbitrary decisions that lack rational justification. The case illustrates the importance of procedural fairness and the need for thorough consideration of all evidence presented in disciplinary hearings.




THE LABOUR COURT OF SOUTH AFRICA , JOHANNESBURG

Not Reportable
Case No: JR1275/2 1

In the matter between:
DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT,
LAND AND ENVIRONMENTAL AFFAIRS Applicant
and

SAMBO, MARTIN N.O. First Respondent

GENERAL PUBLIC SERVICE SECTOR
BARGAINING COUNCIL (GPSSBC) Second Respondent

NEHAWU obo STEMMER M LINDWA NDALA Third Respondent

Heard: 6 May 2025
Delivered: 8 May 2025
This judgment was handed down electronically by circulation to the parties’ legal
representatives by email. The date of hand- down is deemed to be 8 May 2025 .

2
JUDGMENT


MAKHURA , J
[1] The applicant or the Department launched these review proceedings in terms of
section 145 of the Labour Relations Act
1 (LRA) against the arbitration award issued in
favour of t he individual third respondent , Stemmer Ml indwa Ndala (Ndala or employee).
In addition, t he applicant seeks substitution of the award with an order that the dismissal
of the employee was substantively fair, alternatively remitting the matter to the second
respondent for a fresh hearing before a different commissioner. The application is
opposed by the third respondent.
[2] The applicant also applied for condonation for the late delivery of its replying
affidavit. The delay is not significant , and there is no prejudice that the employee would
suffer if condonation were granted. This being a review application where evidence was
led at arbitration proceedings and the replying affidavit is not intended to and did not
introduce new evidence, it is in the interest of justice to grant condonation.
[3] In this replying affidavit , the applicant takes issue with the fact that the answering
affidavit was deposed to by a union official, and not the employee. The applicant submits that the answering affidavit must be disregarded as it constitutes hearsay
evidence and that the matter should be determined on an unopposed basis because the
employee did not sign a confirmatory affidavit and there is no explanation provided why
he did not sign the answering affidavit.
[4] The point must be dismissed as meritless for the following reasons – the
employee is a member of a registered trade union, which referred the unfair dismissal
dispute on his behalf and represented him during the arbitration proceeding s, and the

1 Act 66 of 1995, as amended.
3
answering affidavit was deposed to by a trade union official, whose authority is not
challenged. The trade union is entitled to represent its member .2 The point is dismissed.

[5] The employee faced three allegations of misconduct. After a disciplinary hearing,
he was found guilty of and dismissed for the following two allegations:
‘Charge 1
It is alleged that you contravened the disciplinary code and procedure (Chapter 7 of the SMS handbook) in that you wilfully and negligently mismanaged the finances of the State in that you failed to do due diligence during the course of your duties to wit, you caused a payment o f Mreku Investment Holdings JV
Kusile Dev elopment Solutions to a total sum of R576 840.00 without approval
from the accounting officer.
Charge 2
It is alleged that you contravened the disciplinary code and procedure (Chapter 7 of the SMS handbook) in that you wilfully and negligently mismanaged the finances of the State in that around May 2017 you submitted an invoice of more than R200 000 to the Department for work that was charged for R56 155.80,
which was done by Mr G. Viljoen.’

[6] At the arbitration proceedings, the applicant called t hree witnesses , namely
Gerhardus Viljoen (Viljoen) , Mapholoba Letswalo (Letswalo) and Maada Dagada
(Dagada) . The employee testified and called no other witnesses .
[7] This review application is determined with out the bundle of documents and the
transcript of the oral evidence of Letswalo. The applicant has noted the missing part of
the transcribed evidence of Letswalo. No explanation has been proffered for the failure
to file the bundle of documents , nor is there any explanation why Letswalo’s transcript
was not transcribed or could not be reconstructed. The applicant elected to proceed
with the review application in the absence of this missing record.


2 Section 200(1) and (2) of the LRA.
4
[8] In terms of charge 1, the employee is alleged to have wilfully and negligently
mismanaged the finances by failing to do due diligence and thereby causing payment of
R578 840.00 to Mreku Investment. This payment , so the applicant alleged, required the
approval of the accounting officer but was effected without such approval.

[9] The commissioner , in his analysis of the charge and evidence, correctly
observed that the essence of the charge is that the employee caused the payment of R578 840.00 without the accounting officer’s approval. He noted that the evidence of
Letswalo and Dagada established that the payment was made prior to the employee
seeking approval from the accounting officer . Further, that the applicant sought to prove
the charge by relying on the fact that the employee prepared a memorandum seeking
approval from the accounting officer , and concluded that the employee would not have
request ed approval if he had the authority , and therefore, the accounting officer’s
authority was required and the employee had no such authority.
[10] The commissioner also observed that t he applicant did not provide any
delegation of authority or any financial delegation document that proved that the
employee required the approval of the accounting officer before he could “cause” the
payment of R 578 840.00 to be made. The employee, on the other hand, provided
document ary evidence in the form of a delegation of authority and a letter of
appointment as a Project Manager to show that , as the Chief Director, he had the
authority to sign financial transactions of up to R2 million. The employee’s evidence was
that the memorandum was written ex post facto the payment , and after the Chief
Financial Officer questioned wh ether the payment was in accordance with the Service
Level Agreement . His evidence was further that the Supply Chain Management division
had confirmed that all the necessary documents were submitted in support of the payment before the finance division authorised the payment.
[11] Having considered the evidence above, the commissioner stated correctly that
the onus is on the applicant to prove the charge and the fairness of the dismissal. The
commissioner found that Dagada and Letswalo did not provide evidence to show that
5
the employee required the authority to pay R578 840.00, that despite the employee’s
call for the applicant to provide any evidence to contradict his documentary evidence
showing that he was authorised to make payment of up to R2 million, the applicant failed to provide any evidence to the contrary. The commissioner then concluded that the employee was not guilty of charge 1.
[12] The applicant’s issue with the commissioner’s findings and conclusions above is
that they constitute a gross irregularity and demonstrate that the commissioner’s
misconce ived the enquiry. In its heads of argument, the applicant’s counsel submitted
that the employee “committed an act of gross misconduct in awarding a contract to a
third party in circumstances where he had no powers or authority to do so” and that he
“was supposed to have requested and obtained an approval from the HOD” . This was
not the charge against the employee and certainly not the reason for his dismissal.
[13] The applicant persist s with the submission made during the arbitration
proceedings , which is , as captured by its counsel in the heads of argument – if the
employee “thought that he had the necessary powers, what was the purpose of issuing
a memo to the … HOD ” and that “the only logical explanation is that [he] knew that he
did not have such powers and that is why he sought to rectify his misdemeanours … by issuing a memo to then HOD for the ex post facto approval when in fact the ship had already sailed” .
[14] The applicant is clutching at straws. As the commissioner correctly observed, the
applicant bore the onus to prove the charge. The applicant failed to adduce any evidence to support the charge but instead sought to prove the charge by speculation and conjecture, even on the face of the employee’s documentary evidence that he had the authority. There is nothing unreasonable about the commissioner’s findings and
conclusions . The applicant failed to prove charge 1, and the ground for review against
the commissioner’s decision in this respect is dismissed.

6
[15] The review ground against an award of reinstatement insofar as charge 1 is
concerned must equally fall with the above finding. The employee is not guilty of the
charge, and there was no evidence outside the charge to suggest that reinstatement
would not be reasonably practicable.
[16] The second review ground is that the commissioner failed to deal with charge 2
and the evidence. In terms of this charge, the employee was alleged to have wilfully and
negligently mismanaged the applicant’s finances by submitt ing an inflated invoice of
more than R200 000 for work that was charged or inv oiced for R56 155.80 by Viljoen .

[17] Despite evidence being led on this charge, the commissioner made no analysis
of the evidence, nor did he make any findings on the charge. He simply did not deal with
charge 2. Ms Ndaba, appearing for the third respondent , sought to persuade the Court ,
albeit feebly , that the commissioner had considered the charge by referring to the part
of the award where the commissioner was dealing with the appropriateness of the
sanction of dismissal, which of course is an enquiry necessary only after a finding of
guilt. The commissioner made no finding whatsoever on charge 2.

[18] Whilst the review test is stringent and should not be inter fered with lightly
3, this
Court must satisfy itself that the commissioner considered the principal issue before him
and evaluated the evidence presented at the hearing before reaching conclusions. As
the Constitutional Court elaborated and clarified the review test in Duncanmec (Pty) Ltd
v Gaylard NO & others4:
‘The correct test is whether the award itself meets the requirement of
reasonableness. An award would meet this requirement if there are reasons supporting it. The reasonableness requirement protects parties from arbitrary decisions which are not justified by rational reasons.’
5


3 Fidelity Cash Management Service s v Commission for C onciliation, Mediation and A rbitration and
Others [2007] ZALAC 12; (2008) 29 ILJ 964 (LAC) at para 100.
4 (2018) 39 ILJ 2633 (CC); [2018] 12 BLLR 1137 (CC) at paras 42 - 43.
5 Ibid at para 43.
7
[19] The commissioner’s failure to consider the fairness of the dismissal based on
charge 2 constitutes an irregularity and/or misconduct in the proceedings that denied
the parties , in particular the applicant, the right to a fair hearing of the issue and the
commissioner that the dismissal was unfair is arbitrary .

[20] It is clear that whilst the award is reasonable insofar as the findings and
conclusions that relate to charge 1, the failure to determine the fairness of the dismissal
based on charge 2 constitutes a serious defect in the proceedings . It is my view that the
appropriate relief would be remit the matter to the second respondent to deal with
charge 2. I do not believe that this is an issue that the Court can determine because it is
an issue reserved for the commissioner. However, even if the Court was inclined to sit
as a commissioner to determine the issue in the interest of expediency6, the Court
would be constrained in that the full record of the arbitration proceedings has not been
filed.
[21] Both parties agreed, though reluctantly because the applicant wanted a full
remittal and the third respondent wanted a full dismissal of the application, that the
appropriate remedy would be to remit the charge 2 dispute to the second respondent for
determination or hearing de novo, before the same or a different commissioner. If the
matter proceeds before the first respondent, who had already heard the evidence, he
may call for further written and oral submissions and submission of the record of the proceedings, including the transcri bed record of the oral evidence. If the matter is heard
by a different commissioner, he may equally call for these documents , and for written
and oral submissions and/or may require evidence to be led afresh. Ultimately, the

6 Section 158( 2)(b) of the LRA provides that: “(2) If at any stage after a dispute has been referred to the
Labour Court, it becomes apparent that the dispute ought to have been referred to arbitration, the Court
may -
(b) if it is expedient to do so, continue with the proceedings, in which case the Court may only make
any order that a commissioner or arbitrator would have been entitled to make: Provided that in
relation to the question of costs, the provisions of section 162(2)(a) are applicable” .
In my view, the re may be circumstances that may warrant this Court invoking this provision and
determining an issue in review proceedings which was not addressed or determined by the
commissioner , in the interest of expediency .

8
commissioner remains empowered to deal with the issue in terms of section 138 of the
LRA.

[22] In the premises, the following order is made:
Order
1. The late delivery of the applicant’s replying affidavit is condoned.
2. The review application is successful only to the extent that the
commissioner failed to address charge 2, which formed the reason for the
employee’s dismissal .
3. The unfair dismissal dispute between the employee and the applicant is
remitted to the second respondent for consideration of charge 2 by the first
respondent, alternatively and in the absence of the first respondent, for a hearing
de novo before a different commissioner only in respect of charge 2.
4. Save for paragraphs 2 and 3 above, the review application is dismissed.
5. The second respondent is order ed, within 15 days of receipt of this
judgment, to issue a notice of set down enrol ling the matter for hearing.
6. There is no order as to costs.

M. Makhura
Judge of the Labour Court of South Africa
Appearances:
For the Applicant : Mr M. Zondo
Instructed by : Morolong Inc.
For the 3rd Respondent: Ms T . Ndaba
Instructed by : Sebola Nchupetsang Sebola Inc.