Ntombela v Metal and Engineering Industries Bargaining Council and Others (JR443/23) [2025] ZALCJHB 179 (15 May 2025)

55 Reportability

Brief Summary

Labour Law — Review of arbitration award — Condonation for late filing — Applicant sought to review an arbitration award under section 145 of the LRA, alleging bias and unreasonable findings by the Commissioner — Delay in filing attributed to difficulties in obtaining necessary documentation — Court found that the delay was not excessive and granted condonation — Review of the arbitration award revealed that the Commissioner failed to properly assess evidence and made unreasonable findings regarding the applicant's alleged gross negligence — Award reviewed and set aside, with the dismissal deemed substantively unfair and the applicant reinstated.

Comprehensive Summary

Case Note


Maxwell Sthembiso Ntombela v Metal and Engineering Industries Bargaining Council and Others

Case no: JR443/23

Delivered: 15 May 2025


Reportability


This case is significant as it addresses the review of an arbitration award under section 145 of the Labour Relations Act (LRA). The judgment highlights the importance of ensuring that arbitration proceedings are conducted fairly and that the outcomes are reasonable. The court's decision to set aside the arbitration award underscores the necessity for arbitrators to consider all evidence and to avoid bias, thereby reinforcing the principles of fairness and justice in labor disputes.


Cases Cited



  • Booi v Amathole District Municipality and Others [2022] 1 BLLR 1 (CC)

  • Lekhesa: In re Ngwenya v Trustees for the Time being of Sishen Iron Ore Co Community Development Trust and another (2024) 45 ILJ 1220 (LAC)

  • SACCAWU obo Letsoalo and Another v Commission for Conciliation, Mediation and Arbitration and Others (JA 155/23) [2025] ZALAC 12 (30 January 2025)

  • Sidumo and Another v Rustenburg Platinum Mines Ltd and Others [2007] ZACC 22; (2007) 28 ILJ 2405 (CC)

  • Herholdt v Nedbank Ltd and Another (Congress of SA Trade Unions as Amicus Curiae) (2013) 34 ILJ 2795 (SCA)

  • Gold Fields Mining South Africa (Pty) Ltd (Kloof Gold Mine) v Commission for Conciliation, Mediation and Arbitration and Others [2014] 1 BLLR 20 (LAC)

  • Transnet Ltd t/a Portnet v Owners of The MV Stella Tingas and Another 2003 (2) SA 473 (SCA)

  • Stellenbosch Farmers’ Winery Group Ltd and another v Martell et Cie and others 2003 (1) SA 11 (SCA)

  • South African Society of Bank Officials (SASBO) and Another v The Standard Bank Of South Africa and Others (2022) 43 ILJ 1794 (LAC)


Legislation Cited



  • Labour Relations Act 66 of 1995, as amended


Rules of Court Cited



  • Rule 7A(8)(a) of the Labour Court Rules


HEADNOTE


Summary


The Labour Court reviewed and set aside an arbitration award that upheld the dismissal of Maxwell Sthembiso Ntombela for alleged gross negligence. The court found that the arbitrator had failed to consider all evidence, acted with bias, and reached an unreasonable conclusion. The court granted condonation for the late filing of the review application and ordered the reinstatement of the applicant.


Key Issues


The key legal issues addressed in this case include the fairness of the arbitration process, the reasonableness of the arbitrator's decision, and the application of the principles of condonation in labor disputes.


Held


The court held that the arbitration award was reviewed and set aside due to the arbitrator's failure to ensure a fair trial of the issues and the unreasonable nature of the findings. The dismissal was deemed substantively unfair, and the applicant was ordered to be reinstated.


THE FACTS


Maxwell Sthembiso Ntombela was employed as a Cleaner by Circuit Breaker Industries (Pty) Ltd and was dismissed on 25 April 2022 for alleged gross negligence. The allegations stemmed from an incident where unauthorized items were reportedly removed from the premises during a visit by third-party transporters. The applicant contended that he had permission to remove wooden pallets and that the items in question were not backing plates, as claimed by the employer. The arbitration proceedings concluded with the commissioner finding the dismissal to be substantively fair, leading to the applicant's review application.


THE ISSUES


The court had to decide whether the arbitration award was reasonable and whether the commissioner had acted fairly and impartially during the proceedings. Additionally, the court considered the applicant's request for condonation for the late filing of the review application.


ANALYSIS


The court analyzed the conduct of the arbitrator, noting that the commissioner had failed to adequately assess the evidence presented, particularly the clarity of the video footage and the credibility of witnesses. The court emphasized that the test for bias requires an objective assessment of whether a reasonable person would perceive bias in the arbitrator's conduct. The court found that the commissioner had unduly favored the employer's version of events without properly considering the applicant's evidence.


REMEDY


The court granted the application for condonation for the late filing of the review application. It reviewed and set aside the arbitration award, declaring the dismissal of the applicant to be substantively unfair. The court ordered the reinstatement of the applicant with retrospective effect, maintaining the terms and conditions of his employment prior to dismissal.


LEGAL PRINCIPLES


The judgment established key legal principles regarding the review of arbitration awards, particularly the necessity for arbitrators to conduct fair hearings, consider all relevant evidence, and avoid bias. It also reinforced the importance of the interests of justice in determining applications for condonation in labor disputes. The court highlighted that a reasonable decision-maker's standard must be applied when assessing the outcomes of arbitration proceedings.



LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG

Not Reportable
Case no: JR443/23

In the matter between:

MAXWELL STHEMBISO NTOMBELA Applicant
and
METAL AND ENGINEERING INDUSTRIES
BARGAINING COUNCIL First Respondent
COMMISSIONER CHARMAINE HALIAN STRIPP Second Respondent

CIRCUIT BREAKER INDUSTRIES (PTY) LTD Third Respondent

Heard: 16 April 2025
Delivered: 15 May 2025
(This judgment was handed down electronically by emailing a copy to the
parties. The 15
th of May 2025 is deemed to be the date of delivery of this
judgment).
Summary: Review of arbitration award – section 145 of LRA and review test
considered – determination of conduct of arbitrator, gross irregularities and
unreasonable outcome. Evidence and submissions considered – findings and
conclusions of Commissioner not justifiable and unreasonable – award
reviewed and set aside.
2


JUDGMENT


PHAKEDI , AJ
Introduction
[1] The Applicant is approaching this C ourt in terms of section 145 of the Labour
Relations Act
1 (LRA) , seeking to review and set aside the arbitration award issued by
the second respondent under case number MEGA 58765 dated 2 1 December 2022.
[2] The Applicant further seeks an order condoning the late filing of his review
application. Should the condonation application be declined, this Court lacks the
necessary jurisdiction to consider the merits of the application. In order to succeed with his condonation application, the Applicant has to make an application at the earliest available opportunity and show good cause that he is deserving of the Court’s indulgence for his non- compliance.
Condonation application
[3] The Applicant avers that he received a notification from the first respondent
that his referral had been dismissed via short message service (SMS) on 21 December 2022. However, at the time he could not access the arbitration award because the offices of the first and second respondents were closed and they only re-opened on 4 January 2023.
[4] He only received the arbitration award on 17 January 2023 from NUMSA
offices in Kempton Park. He believed that he also needed the bundles exchanged by the parties during arbitration so he can submit them at Labour Court. H e struggled to
get the bundl es from NUMSA on several occasions and eventually he was told to

1 Act 66 of 1995, as amended.
3

collect them from the Kempton Park Office and he approached the Labour Court to
file his review application on 12 April 2023. He delayed in filing the review application
due to the attitude of NUMSA not providing him with the bundles timeously and immediately upon receipt of the bundles he then filed his review application without any legal assistance.
[5] The Registrar made him aware that the record had been filed on 24 April 2023
and he filed a document titled notice of motion in terms of Rule 7A (8)(a) incorporating an application for condonation together with a supplementary affidavit on or about 7 June 2023.
[6] He only consulted with his legal representatives on 18 May 2023 and they
advised him that he ought to also comply with the Rules relating to the filing of the record. He also submitted the degree of lateness is not too excessive and he had strong prospects of success in the review application where he will prove that the award is reviewable and stands to be set aside on the basis that the Commissioner
was biased and did not consider the evidence in totality .

[7] The third respondent is opposing the condonation application and stated that
the Applicant ought to have filed his review application on or before 01 February
2023. The period of delay was approximately 10 weeks when the Applicant served and filed his review application on 12 April 2023. It was further submitted that the explanation for the delay was unsatisfactory in that the Applicant failed to provide cogent reasons for his failure to file the review timeously.
[8] The second issue was that the Applicant did not comply with the Rules in that
although he filed the record of arbitration proceedings on time, he failed to file the notice in terms of Rule 7A(8) on time but only served same on 15 November 2023. The Applicant failed to deal with prospects of success and third respondent will be
prejudiced if the condonation application is granted in that financial resources will have to be employed to defend the review application.

4

[9] The Constitutional Court in Booi v Amathole District Municipality and Others2
emphasized that condonation is not merely there for the taking. The Court confirmed
that condonation should be granted if it is in the interests of justice, which has to be
determined by reference to all relevant factors including the nature of the relief sought, the extent and cause of the delay, the effect on the administration of justice, prejudice and the reasonableness of the explanation for the delay.
[10] The Labour Appeal Court (LAC) in Lekhesa: In re Ngwenya v Trustees for the
Time being of Sishen Iron Ore Co Community Development Trust and another
3
stated: ‘The grant of condonation involves the exercise of a discretion, with a decision
to condone a party's non- compliance with the rules of the court or directions
constituting an indulgence granted by the court. Such an application should be granted if, having regard to the particular circumstances of the matter, it is in the interests of justice to do so, and refused if it is not. To reach a decision, regard is to be had to factors including the nature of the relief sought, the extent and cause of the delay, the reasonableness of the explanation for the delay, the importance of the issue to be raised, issues of prejudice and the
prospects of success. As a general proposition, the factors to be considered
are not individually decisive of an application for condonation but are all considered to determine what is in the interests of justice.’
[13] The LAC restated the above- mentioned condonation principles in SACCAWU
obo Letsoalo and Another v Commission for Conciliation, Mediation and Arbitration and Others
4 where it was held that:
[18] It is well accepted that condonation cannot be had for the mere asking
but a plea for the court’s indulgence to excuse the non- compliance with the
prerequisite time limits in terms of the prescripts on sufficient cause shown. The yardstick is the interest of justice which entails a consideration of all the relevant factors, including the extent and cause of the delay; the effect of the delay on the administration of justice and other litigants; the reasonableness

2 [2022] 1 BLLR 1 (CC) at para 27.
3 (2024) 45 ILJ 1220 (LAC) at para 14.
4 (JA 155/23) [2025] ZALAC 12 (30 January 2025) .
5

of the explanation for the delay; the importance of the issue to be raised in the
intended appeal; and the prospects of success. Ultimately, the particular circumstances of each case will determine which of these factors are relevant.
[19] Added to the general principles, in Steenkamp and Others v Edcon
Ltd, the Constitutional Court endorsed the Labour Law -specific factors and
considerations which are premised on one of the primary objects of the LRA to have labour disputes resolved expeditiously. Since labour disputes are inherently urgent, the LRA imposes strict time limits within which various applications and referrals must be launched to give effect to the primary object of the LRA. As a result, and pertinent to the case at hand, c ondonation
in a case of disputes over individual dismissals will not readily be granted unless, inter alia, the explanation for non- compliance is compelling. What is
more, a higher threshold has been set where the delay is attributed to the internal processes and procedures of trade unions. [20] …
[21] In Government Printing Works v Public Service Association & 1
another (JA35/24) ZALAC 63, this Court likewise was confronted with the
Labour Court's refusal to condone the late delivery of the statement of
opposition against a claim of unfair discrimination. The Labour Court opined
that, given the extent of the delay and the unreasonable explanation, it was not enjoined to consider the prospects of success. The approach followed by
the Labour Court to condonation was rejected as it is at odds with the broad
and balancing approach that has emerged in our jurisprudence which is
characterised by proportionality and flexibility. The following observations are
pertinent:
[28] The endorsement of these sentiments in Steenkamp highlights its
significance. Steenkamp’s single -sentence synthesis of the majority and
minority expressions in Grootboom appears to put the settled approach beyond doubt:
“All factors should therefore be taken into account when assessing whether it
is in the interests of justice to grant or refuse condonation.”
[29] The effect is that an approach which completely ignores the prospects
of success on the merits whenever there is an unsatisfactory, unreasonable or unacceptable explanation for a delay, requires explication. There does come
6

a time in any case where a party’s disregard for procedure and delay in
pursuing a matter is so extensive that they will be penalised irrespective of the merits of the case. The SCA has confirmed that an assessment of prospects of success is a relevant factor in the exercise of a discretion regarding condonation, unless the cumulative effect of the other relevant factors in the case is such as to render the application for condonation ‘obviously unworthy of consideration’. It is in cases of ‘flagrant’, ‘gross’ breaches of the rules, especially in the absence of an acceptable explanation, that condonation may be refused regardless of the merits of the appeal, even where the blame lies solely with the legal representative. In this court, it has been acknowledged that excellent prospects of success lead to the granting of condonation even when the delay is substantial and the explanation inadequate.
[30] Assuming that there remains some scope to ignore the prospects of
success completely, doing so requires careful and deliberate analysis.
Borrowing from the language supported in Steenkamp, it is first necessary to
conclude, with due deliberation, that the delay is ‘unacceptably excessive’.
Secondly, and accepting that the reference to ‘no explanation for the delay’ is
not to be construed literally, consideration must still be given to whether the
explanation offered is tantamount to an absence of a ful l and reasonable
(acceptable, sufficiently cogent) explanation for the delay. It should be clear,
when considering the explanation offered, that the non- observance of the rule
is ‘flagrant and gross’ before the inquiry into the prospects of success may be
jettisoned. Thirdly, and noting the usual reluctance to do so, the court must
exercise a discretion to refuse condonation without any consideration of the
prospects of success .” [Own emphasis]
[22] Government Printing Works v Public Service Association and another
aptly expounded the applicable general principles for condonation and dealt with a misconception that once an applicant fails to proffer a reasonable explanation for the excessive delay, prospects of success are of no consequence and could be automatically discounted…
[11] In applying the above principles to the present application, I am of the
view that although the period of delay is approximately 10 weeks and not too
excessive , and the Applicant has provided an explanation for the delay in
filing his review application.
7

[12] In respect of prospects of success, the Applicant alleged that the
second respondent was biased in the manner in which she conducted the
hearing. The test for bias is whether a reasonable, objective and informed
person would, on the correct facts, reasonably apprehend bias. Mere
apprehensiveness on the part of a litigant or even a strong and honestly held anxiety would not be enough. The question to be answered is: what would an informed person, viewing the matter realistically and practically and having thought the matter through conclude?
5
[13] In order to ventilate this issue and determine whether the
commissioner was indeed bias ed, the Court is required to have regard to the
award and the total material which served before the arbitrator. As such, I am therefore enjoined by decisions from the LAC to entertain the application for condonation. Both parties have filed their prescribed sets of affidavits and heads of argument in the main application. I am of the view that it is in the
interests of justice and fairness that the late filing of the review application be
condoned for the purposes of properly considering the review on the merits.
Background facts
[14] The Applicant was employed by the third respondent as a Cleaner from 14
August 1995 and at the time of his dismissal he was earning R69.00 per hour . He
was dismissed on 25 April 2022 subsequent to a disciplinary hearing premised on
the following allegations of misconduct:
‘gross negligence in that on 7
th February 2022, public members that had
authorised permission to remove wooden pallets on your behalf, also removed the company’s backing plates without authorisation / permission. You failed to ensure that the correct items were removed and your gross negligence has caused your employer a severe financial loss. A reasonable employee in your position would have ensured that only items that were authorised were loaded from the premises”.


5 See: Grindrod Logistics (Pty) Ltd v SATAWU obo Kgwele and Others (2018) 39 ILJ 144 (LAC) at
para 31.
8

[15] It is common cause that the Applicant was given some wooden pallets by the
third respondent and he obtained permission to have same removed by a third party
transport. On the day in question, the Applicant directed the transporters to the area where they are collecting the wood and left them unattended and carried on with his daily duties. The movements of these visitors was recorded on a video footage and
they were seen on the footage removing two items other than the wooden pallets. The third respondent m aintains that the removed items were backing plates and the
Applicant denied that backing plates were removed from the third respondent’s premises and that the Security personnel at the gate could have reported the theft had the backing plates been removed as the authorization was only for the removal of wooden pallets.
[16] During the disciplinary hearing, the Applicant called a witness, Mr Molefe who
took the chairperson together with the witnesses of the third respondent and pointed out the backing plates to them confirming that they were not stolen.
[17] The third respondent called two witnesses, Mr Mulder and Mr Niraj Kanjee. Mr
Mulder confirmed that he issued the Applicant with a permit to remove the scrap
pallets to be removed from the third respondent’s premises. The following day he
was approached by a certain Mandla from the tool room who told him that the plates were missing and a certain contractor had seen the plates being loaded onto a truck. He then commissioned the viewing of video footage which he had to view 120 times
to confirm that indeed the items being loaded onto the truck were backing plates.
[18] The second witness, Mr Kanjee testified that he was the initiator during the
disciplinary hearing. He confirmed that an inspection in loco was conducted and
indeed the backing plates were shown to them. However, he testified in the hearing that subsequent to the dismissal of the Applicant he conducted an investigation and found that the backing plates shown at the inspection in loco belonged to another
machine. The missing plates were later replaced and as a result the third respondent suffered loss.
[19] The Applicant agreed that the transporters were seen on the video footage
loading ‘ something’ other than the wooden pallets and it was not clear as to what
9

exactly was removed because the video footage was not clear. However, he denied
that what they were seen loading was backing plates. He relied on the testimony of Molefe who testified that in order to move backing plates an overhead crane is needed. He denied further that there was a rule on the workplace which demanded that he must keep an eye on the visitors.
[20] The Applicant’s witness, Mr Molefe testified that he was a supervisor in the
Moulding Department. He explained that when visitors c ame to collect the pallets,
the Security Officers accompanies them to ensure that they do not do anything wrong. He testified that the backing plates were not missing and he is the one who pointed them out during the disciplinary hearing.
Arbitration proceedings and the award
[21] Subsequent to his dismissal, the applicant referred a dispute of unfair
dismissal to the Bargaining Council. The second respondent, commissioner Charmaine Halian Stripp (Commissioner) was appointed to arbitrate the matter. Two witnesses testified on behalf of the third respondent and the applicant and his
witness also testified in his own defence. He maintained that the backing plates were
not removed from the third respondent’s premises and he was dismissed for a non-mandatory rule and sought to be reinstated to his position.
[22] The arbitrator stated that the version of Mulder and Kanjee was not
challenged during cross examination. She further stated that the Applicant did not dispute that he had a duty to accompany his visitors as prescribed in the Policy and he did not comply with the policy when he left the visitors unattended. [23] The Commissioner stated that she took into account Mulder’s direct evidence
that he viewed the video footage as he was told that the plates were missing. She then concluded further that Molefe’s evidence that the plates could be moved by an
overhead crane was not put to the witnesses as such she did not consider his testimony and concluded that the plates were removed.

10

[24] At the close of proceedings, the Commissioner found that the dismissal of the
applicant was substantively fair and confirmed his dismissal.

Applicant’s grounds for review
[25] The Applicant is challenging the arbitration award on the grounds that the
Commissioner failed to ensure that there was a fair trial of the issues in that she was
biased. She failed to properly deal with contradictory statements of the third
respondent’s witnesses , Mr Mulder and Mr Kanjee.
[26] The Commissioner failed to properly assess the evidence and unduly placed
too much weight on the video footage. She failed to take into account that the video
footage was not clear hence the third respondent’s witness, Mr Mulder had to look at it 120 times in order to satisfy himself that it was indeed the backing plates which were loaded on to the truck.
[27] She failed to take into account the fact that investigations were made by Mr
Kanjee after the dismissal of the Applicant as a result he came up with a new version
that the backing plates pointed out by Mr Molefe during the disciplinary hearing
belonged to another machine.

[28] The Commissioner unreasonably excluded the evidence of Mr Molefe who
testified that an overhead crane machine is required for moving plates as they are
heavy and cannot be moved by hand. The Commissioner erred in excluding his evidence on the basis that it was not put to the witnesses. She failed to request the parties to undertake an inspection in loco in order to satisfy herself of the size, shape
and weight of the backing plates.
[29] She failed to apply the provisions of Schedule 8 of the LRA in a fair and
consistent manner in that she only focused on the provisions which favoured the case of the respondent and ignored the fact that the Applicant was dismissed for a non-mandatory rule and also failed to take his personal circumstances into account.
The test for review
11


[30] The Constitutional Court in Sidumo and Another v Rustenburg Platinum Mines
Ltd and Others6 held that “ the reasonableness standard should now suffuse section
145 of the LRA7”, and that the threshold test for reasonableness of an award “…is
[whether] decision reached by the commissioner one that a reasonable decision
maker could not reach?”8
[31] The Supreme Court of Appeal in Herholdt v Nedbank Ltd and Another
(Congress of SA Trade Unions as Amicus Curiae)
9 held as follows:
‘A result will only be unreasonable if it is one that a reasonable arbitrator could not
reach on all the material that was before the arbitrator. Material errors of fact, as well as the weight and relevance to be attached to particular facts, are not in and of themselves sufficient for an award to be set aside, but are only of any consequence
if their effect is to render the outcome unreasonable. ’
[32] In this matter, the Applicant has listed a number of grounds for review which
have been summarised above. The debate on the right to review an arbitration
award on process -related grounds as opposed to result -related grounds was finally
settled by the Labour Appeal Court (LAC) in Gold Fields Mining South Africa (Pty)
Ltd (Kloof Gold Mine) v Commission for Conciliation, Mediation and Arbitration and Others
10 as follows:
‘[13] The right to review an arbitration award on process related grounds
has been a topic of recent discussion and debate. It has been regarded as a different species of review to that postulated in Sidumo . Sidumo requires the
review court to ask the question: is the decision made by the arbitrator one that a reasonable decision maker could not reach on the available material?
This has been interpreted by some to suggest that the Sidumo test deals only
with the result or outcome of the arbitration proceedings and that it remains open to review an award on process -related grounds.

6 [2007] ZACC 22; (2007) 28 ILJ 2405 (CC) ( Sidumo ).
7 Ibid at para 106.
8 Id fn 6 at para 110.
9 (2013 ) 34 ILJ 2795 (SCA) at para 25.
10 [2014] 1 BLLR 20 (LAC) at paras 13 – 14 and 18.
12

[14] Sidumo does not postulate a test that requires a simple evaluation of
the evidence presented to the arbitrator and based on that evaluation, a
determination of the reasonableness of the decision arrived at by the arbitrator. The court in Sidumo was at pains to state that arbitration awards
made under the Labour Relations Act (LRA) continue to be determined in terms of s ection 145 of the LRA but that the constitutional standard of
reasonableness is “suffused” in the application of s ection 145 of the LRA . This
implies that an application for review sought on the grounds of misconduct, gross irregularity in the conduct of the arbitration proceedings, and/or excess of powers will not lead automatically to a setting aside of the award if any of the above grounds are found to be present. In other words, in a case such as the present, where a gross irregularity in the proceedings is alleged, the enquiry is not confined to whether the arbitrator misconceived the nature of the proceedings, but extends to whether the result was unreasonable, or put another way, whether the decision that the arbitrator arrived at is one that falls in a band of decisions to which a reasonable decision -maker could come on
the available material.

[18] In a review conducted under s ection 145(2)(a)(c) (ii) of the LRA, the
review ing court is not required to take into account every factor individually,
consider how the arbitrator treated and dealt with each of those factors and
then determine whether a failure by the arbitrator to deal with one or some of the factors amounts to process -related irregularity sufficient to set aside the
award. This piecemeal approach of dealing with the arbitrator’s award is improper as the review ing court must necessaril y consider the totality of the
evidence and then decide whether the decision made by the arbitrator is one that a reasonable decision- maker could make.’

[33] The LAC has made it clear that a review court is not at liberty to pick and
choose certain aspects of the award and evaluate them independently as such a piecemeal approach will defeat the requirements in section 138 of the LRA which prescribes how commissioners must conduct arbitration proceedings.

Evaluation
13


[34] The Applicant was dismissed on allegations of gross negligence in that that
on 7 February 2022, public members that had authorised permission to remove wooden pallets on your behalf, also removed the company’s backing plates without authorisation / permission. You failed to ensure that the correct items were removed and your gross negligence has caused your employer a severe financial loss. A reasonable employee in your position would have ensured that only items that were authorised were loaded from the premises.
[35] The Commissioner in paragraph 43 of his award stated that :
“the applicant left the visitors, together with their truck, unattended in an area where they had access to the respondent's property. I have found that the visitors removed two plates without authorisation. The respondent suffered a loss (two plates) as a result of the applicant's failure to c omply with the policy.
The applicant ought to have foreseen that his conduct exposed the respond the risk of unauthorised removal of property. The applicant did not take reasonable care to sa feguard the respondent's assets whilst the visitors were
carrying out tasks on his behalf. I ac cordingly find the applicant guilty of gross
negligence. ”
[36] According to Grogan,
11 in order to warrant a dismissal at first instance,
negligence by an employee must be ‘gross’. Gross negligence may be said to have occurred if the employee is persistently negligent, or if the act or omission under consideration is particularly serious in itself. While in civil law the term ‘gross negligence’ has a technical meaning, in employment law it can be taken to mean negligence that is particularly inexcusable.”
[37] The requirements for a dismissal based on negligence are that the employee
failed to exercise the standard of care that can reasonably be expected of him through conduct that caused loss or potential loss to the employer. In this case, the Applicant was charged with gross negligence which required a conscious and
voluntary disregard of the need to employ reasonable care to prevent any

11 Grogan Dismissal (2nd ed) at p 246 – 247.
14

foreseeable grave injury or harm. The Applicant testified that this was not his first
time to have visitors on the property and he did not see the need to stay with them
while they were loading because he knew that the Security officers will still search the truck when it leaves the premises of the employer.
[38] It is not clear on what basis did t he commissioner reach a finding that the
Applicant was guilty of gross negligence as charged. The SCA in Transnet Ltd t/a Portnet v Owners of The MV Stella Tingas and Another: MV Stella Tingas
12 held that
“for a conduct to constitute gross negligence, “ the conduct in question must involve a
departure from the standard of the reasonable person to such an extent that it may
properly be categorised as extreme; it must demonstrate, where there is found to be
conscious risk -taking, a complete obtuseness of mind or, where there is no
conscious risk- taking, a total failure to take care. If something less were required, the
distinction between ordinary and gross negligence would lose its validity.”
[39] In paragraph 39 of the award, the Commissioner states that “schedule 8, the
Code of Good Practice: Dismissal, hereinafter referred to as the Code states that "any person who is determining whether a dismissal for misconduct is unfair should
consider whether or not the employee contravened a rule or standard regulating
conduct in, or of relevance to, the workplace..." It is not clear on what basis did the
Commissioner conclude that the Applicant was guilty of gross negligence as stated
in the arbitration award. She relied on Clause 6.5 of the HR Related Policy which deals with mandatory and non- mandatory rules that:
“Conduct of visitors: (Non- mandatory)
6.5.1 Employees shall advise their visitors of Company rules as requires and
shall ensure that visitors act in an unacceptable manner.
6.5.2 No Employee shall allow their visitors on the Company premises
unaccompanied by an Employee or Manager.”
….
6.11. Negligence which causes Damage (Mandatory)
6.11.1 NO employee shall be negligent in his/her behaviour which may involve
waste, scrap or damage.

12 2003 (2) SA 473 (SCA) at para 7.
15

39.12 Gross Negligence or damage (mandatory) .

Schedule 8 of the LRA Code of good practice: dismissal (the code)
[40] Section 188 (2) of the LRA provides that any person considering whether or
not the reason for dismissal is for a fair reason must take into account any relevant
code of good practice issued in terms of the LRA. In considering the fair reason of the dismissal of the Applicant, the second respondent was obliged to have regard to the code of good practice. Of relevance to this matter is item 7 of the code which provides as follows:
“7. Guidelines in cases of dismissal for misconduct
Any person who is determining whether a dismissal for misconduct is unfair should consider –
(a) Whether or not the employee contravened a rule or standard regulating
conduct in or of relevance to, the workplace; and
(b) If a rule or standard was contravened, whether -
(i) The rule was a valid or reasonable rule or standard;
(ii) The employee was aware, or could reasonably be expected to have
been aware, of the rule or standard;
(iii) The rule or standard has been consistently applied by the employer;
and
(iv). Dismissal was an appropriate sanction for the contravention of the rule
or standard.”

[41] Item 4 states that :
“Generally, it is not appropriate to dismiss an employee for a first offence,
except if the misconduct is serious and of such gravity that it makes a continued employment relationship intolerable. Examples of serious misconduct, subject to the rule that each case should be judged on its merits, are gross dishonesty or wilful damage to the property of the employer, wilful
endangering of the safety of others physical assault on the employer, a fellow employee, client or customer and gross insubordination. Whatever the merits of the case for dismissal might be, a dismissal will not be fair if it does not meet the requirements of section 188.”
16


[42] Item 5 states that :
“When deciding whether or not to impose the penalty of dismissal, the
employer should in addition to the gravity of the misconduct consider factors
such as the employee’s circumstances (including length of service, previous disciplinary record and personal circumstances), the nature of the job and the circumstances of the infringement itself.”

[43] The Applicant and his witnesses testified that the visitors did not remove the
backing plates and there was a security officer who was responsible for ensuring that the visitors only remove the items stated in the authorization document. The Commissioner rejected the evidence of the applicant but found that all the witnesses
of the third respondent were credible and their version was not disputed. However,
she failed to consider that the investigation was only conducted subsequent to the dismissal of the Applicant and the backing plates were pointed out during the disciplinary proceedings which the witness did not dispute.

[44] The second issue is that the witness of the third respondent, Mr M ulder
testified that he had to watch the video footage 120 times just to satisfy himself that indeed the items loaded on the truck were backing plates. The arbitrator failed to
follow binding court decisions regarding what was expected of her when faced with
two irreconcilable versions from the witnesses.
[45] The Supreme Court of Appeal in Stellenbosch Farmers’ Winery Group Ltd
and another v Martell et Cie and others
13 laid out the accepted test applicable to both
a trial court and an arbitrator when faced with a factual dispute, in particular when
faced with two irreconcilable versions. According to this judgment, the C ourt had to
come to a conclusion on the disputed issues by making findings on (1) the credibility of the various factual witnesses; (2) their reliability; and (3) the probabilities:
‘... The court’s finding on the credibility of a particular witness will depend on
its impression about the veracity of the witness. This finding will, in turn, depend on a variety of subsidiary factors … such as (i) the witness' candour

13 2003 (1) SA 11 (SCA) at para 5.
17

and demeanour in the witness -box, (ii) his bias, latent and blatant, (iii) internal
contradictions in his evidence, (iv) external contradictions with what was
pleaded or put on his behalf, or with established fact or with his own extracurial statements or actions, (v) the probability or improbability of particular aspects of his version, (vi) the calibre and cogency of his performance compared to that of other witnesses testifying about the same incident or events …’

[46] The applicant and his witness corroborated each other in respect of the nature
of the rule he is alleged to have contravened, the fact that backing plates were never stolen and the fact that the video footage was not clear. The commissioner then opted to exclude the evidence on the basis that it was not put to the witnesses as a result she failed to deal with the merits of the case before her. The LAC in South African Society of Bank Officials (SASBO) and Another v The Standard Bank Of
South Africa and Others
14 held that:
‘The trier of fact is expected, in the context of discipline in the workplace, to
deal with the wrong committed by an employee even if the charge may have been inelegantly phrased provided that the employee is not significantly
prejudiced by the incorrect labelling of the charge.’

[47] I am required to determine if the Commissioner complied with the
requirements prescribed in section 138 of the LRA. I am satisfied that she identified the nature of the dispute she was required to arbitrate, and she afforded both parties
an opportunity to lead and adduce evidence. However, from reading the award and considering the evidence presented to her , I am of the view that she was biased
against the applicant and prejudiced him greatly by rejecting the evidence which
could have assisted in determining whether the dismissal of the Applicant was for a fair reason. She furthermore ignored the material contradictions and the improbabilities of the evidence of the witnesses in that if indeed the items loaded on the truck were backing plates, it did not need Mulder to watch the video footage 120
times in order to identify the items being loaded on the truck .


14 (2022) 43 ILJ 1794 (LAC) at para 25.
18

[48] Accordingly, the review application stands to succeed and the arbitration
award is reviewed and set aside. Having reviewed and set aside the award, this
Court retains powers to either remit the matter to the CCMA for a hearing de novo or
substitute the award with its own decision. In Palluci Home Depot (Pty) Ltd v
Herskowitz and Others15, the Labour Appeal Court set out the approach to be
applied when deciding whether to remit or substitute, as follows:
‘Where all the facts required to make a determination on the disputed issues
are before a reviewing court in an unfair dismissal or unfair labour practice dispute such that the court is "in as good a position" as the administrative tribunal to make the determination, I see no reason why a reviewing court should not decide the matter itself . Such an approach is consistent with the
powers of the Labour Court under s 158 of the LRA, which are primarily directed at remedying a wrong, and providing the effective and speedy resolution of disputes. The need for bringing a speedy finality to a labour dispute is thus an important consideration in the determination by a court of review of whether to remit the matter to the CCMA for reconsideration, or substitute its own decision for that of the commissioner. Thus, where the issues are largely common cause, the pleadings comprehensive, the full
record of both the disciplinary and arbitration proceedings are before the
court, and there has been a elapse of almost 20 months from the date of
dismissal to the date of finalisation of the review application, such as in this case, the consideration of bringing the dispute to a speedy finality would certainly have a bearing on the decision of the reviewing court to decide the dispute, and not remit it to the CCMA, because it is 'in as good a position' as the CCMA to do so...'
[49] Where a decision is made on the basis of flawed reasoning, or an error of law,
there is similarly no point to remit the matter back for determination de novo, where the facts remain the same.
16 Applying the aforesaid in casu, it is my view that in this
particular case the arbitration award must be substituted in the interests of bringing this matter to finality.

15 (2015) 36 ILJ 1511 (LAC) at para 58.
16 See Rustenburg Platinum Mines Ltd v Commission for Conciliation, Mediation and Arbitration and
Others (2007) 28 ILJ 417 (LC) at para 28.
19


[50] The application was opposed and both parties made submissions that they
are seeking costs of suit in the event of success with their cases. I do not believe that it is in the interests of justice and fairness that the third respondent should be ordered to pay costs of the applicant. In the Labour Court costs do not automatically follow the results.
[51] In the premises , the following order is made:
Order
1. The application for condonation for the late filing of the review
application is granted.
2. The arbitration award issued by the Metal and Engineering Industries
Bargaining Council under case number MEGA 58765 is reviewed and set
aside and substituted with an order that the dismissal of the Applicant was
substantively unfair.
3. The third respondent is ordered to reinstate the Applicant with
retrospective effect on the same terms and conditions which governed their
employment contract at the time of the termination of employment on 25 April 2022 with no loss of benefits.
4. There is no order as to costs.

G C Phakedi
Acting Judge of the Labour Court of South Africa
Appearances :
For the A pplicant: Mr Zungu of VS Mosehla Incorporated
For the Respondent: Mr De Villiers of De Villiers & Du Plessis Attorneys