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[2026] ZALCCT 2
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Mpact Operations (Pty) Ltd v Metal and Engineering Bargaining Council and Others (C181/2024) [2026] ZALCCT 2 (15 January 2026)
FLYNOTES:
LABOUR – Dismissal –
Theft
–
Proof
– Roll of toilet paper – Materially defective
investigation – Failure to secure key physical evidence
fundamentally compromised employer’s case – Security
personnel allowed employee to leave premises with disputed
roll –
Undermined allegation of attempted theft – Flawed
investigation and inadequate evidentiary record –
No
contravention of workplace rules proven – Dismissal is
substantively unfair.
THE LABOUR COURT OF
SOUTH AFRICA, CAPE TOWN
Case
No:
C181/2024
(1)
Reportable
(2)
Of interest to other Judges: Yes/No
(3)
Revised
In
the matter between:
MPACT OPERATIONS (PTY)
LTD
Applicant
and
METAL AND ENGINEERING
BARGAINING
COUNCIL
First Respondent
A
SINGH-BHOOPCHAND
N.0.
Second Respondent
NUMSA obo BRIAN
THEODORE APRIL
Third Respondent
Heard
:
16 October 2025
Delivered
:
15 January 2026
Summary:
Review application - proof of - theft - attempt to remove - initial
investigation compromised
JUDGMENT
MKHATSHWA, AJ
Introduction
[1]
This is an opposed review application for the following order:
‘
reviewing
and setting aside the ruling under case number
MEWC
13277
,
dated 18 March 2024 (the Award) made by the Second Respondent under
the auspice of the First Respondent. In the alternative, the
matter
be remitted back to the First Respondent, to be dealt with by an
arbitrator other than the Second Respondent.’
Background
Facts
[2]
The Third Respondent, Mr Theodore April, was
employed as a Winder Operator. He commenced employment with the
Applicant in 2009.
He was dismissed on 7 November 2022 after he was
found guilty at an internal disciplinary hearing. He was earning R12
000 per month
at the time of his dismissal. The charges that he faced
were the following:
‘
Theft
or unauthorized possession of Company Property: in that on the 21
st
of
October 2022, security found a roll of toilet paper in your
possession after your shift had ended. The toilet paper was the same
brand as what the company are using.
Dishonesty: In that you
attempted to remove company property without authorization and
permission.’
[3]
It was not disputed at the arbitration that a roll
of toilet paper (the roll) was found in the Third Respondent’s
possession
when security conducted a search. The Third Respondent
denied that the roll belonged to the Applicant and claimed that he
carried
it with him from his home. He also argued that the Applicant
had not been consistent in the application of the sanction of
dismissal.
[4]
The Applicant, on its part, argued at the
arbitration that it received a tip off that the Third Respondent was
stealing company
toilet paper. Acting on the tip off, the Applicant’s
security staff at the gate were instructed to carry out a search and
found a roll that belonged to the Applicant in the Third Respondent’s
bag. The Applicant’s rule is that employees must
declare items
that they bring from home if they are the same/similar to items that
are on the Applicant’s premises.
[5]
The Second Respondent found that the dismissal of
the Third Respondent was unfair, and she ordered his reinstatement
with 12 months
back pay amounting to R120 000.
Grounds of review
The Applicant raises the
following grounds of review against the Award of the Second
Respondent under three main headings:
The rule in the
workplace
[6]
The Second Respondent failed to apply her mind to
the evidence and thereby grossly misconducted herself by not
establishing whether
the Applicant proved that the Third Respondent
reasonably knew, or ought to have known of the rule in the workplace.
[7]
A bare denial of the rule by the Third Respondent
was not sufficient, and in any event, he later conceded at the
arbitration that
“
he now accepts
the rule and acknowledges that he is guilty for not declaring”
the item. That the Second Respondent ought to have
accepted that the Third Respondent knew of the rule, and that the
rule was reasonable
and further that it was applied consistently.
Breach of the rule
[8]
The testimony revealed that the Applicant’s
roll is unique and cannot be found in a retail store, as it is
purchased from
a supplier. Since the Third Respondent did not deny
this, the Second Respondent should have accepted it as a fact.
[9]
There was no evidence from the Third Respondent on
where he purchased “
his roll”
.
Except that he said he brought it from home.
[10]
The Second Respondent grossly erred by comparing
the roll brought by the Third Respondent to the disciplinary hearing.
That instead
she should have scrutinised the roll confiscated on the
date of the incident, with that which the Applicant generally
purchases.
Breach of trust
[11]
The Second Respondent failed to properly take into
account the serious nature of the Third Respondent’s conduct
and misconstrued
the application of the case law entirely.
[12]
That she failed to determine whether the trust
relationship had been breached, and wholly ignored evidence speaking
to this. She
focused on the value of the item in question, and not
the testimony presented.
Remedy
[13]
As a result of the above, the Second Respondent
arrived at a decision that no reasonable decision maker could reach.
[14]
The Second Respondent erred in law as she failed
to apply her mind to the relevant facts and evidence presented, which
constitutes
a gross irregularity and/or process.
[15]
She miscalculated the back-pay as 12 months x R12
000 equals R144 000.
Supplementary grounds
[16]
According to the Applicant, the Third Respondent
never seriously disputed that the roll used by the Applicant is
unique and that
it could not be purchased at retail stores
[17]
The photograph of the rolls, which was taken on
the day of the disciplinary hearing, takes the matter no further.
[18]
Further that to conclude that the roll was not the
property of the Applicant, the Second Respondent had to find that the
roll was
different to those used by the Applicant, and by making such
a finding, she would have had to reject the direct evidence presented
by Rall, the Applicant’s witness.
[19]
On the sanction, the Applicant argues that the
Second Respondent was unreasonable in concluding that if the Third
Respondent did
in fact steal the roll, dismissal was too harsh.
[20]
The Second Respondent did not consider the fact
that the Applicant’s witnesses testified that there is no
longer any trust
relationship between the Applicant and the Third
Respondent.
Award
[21]
The Second Respondent identified the issue that
she had to decide as being:
‘…
whether
the dismissal of the Applicant was substantively fair.’
[22]
In her analysis of the evidence, she states that
she is not convinced by the version of the Applicant. She explains
that it is difficult
to make a comparison from the pictures provided
in the Applicant’s bundle as all the rolls look similar. She
states that
it is also not possible to establish which of the rolls
is a two-ply version, as one could only see one sheet. Further that
there
is no picture of the two relevant rolls together, and she
questions why no such picture was taken.
[23]
She makes the point in the Award that the Third
Respondent was allowed to leave the Applicant’s premises with
the roll that
was found on him. Had security managers been so
convinced, it is more likely that they would have been at pains to
confiscate the
roll. She finds that the Third Respondent’s
version that he put the roll back into his bag because he thought his
explanation
was accepted is plausible.
[24]
Further that the Third Respondent did so in the
presence of all the security officers and security managers, and no
one tried to
stop him. Furthermore, the security manager’s
explanation that they did not pay attention as there was a lot
happening around
them is ‘lame’. She explains that she
concludes as such because the managers were called to the scene
specifically
to deal with the Third Respondent and not with anything
that may have been happening around them.
[25]
She questions why the roll that was found in the
Third Respondent’s possession was not confiscated. She refers
to this as
a fatal flaw in the Applicant’s case. She also
refers to video footage which was presented as evidence at the
arbitration,
and she finds that it does not serve to prove anything.
She states that the Third Respondent does not dispute that he had a
roll
in his possession. That she did not note any obvious reluctance
to have his shoulder bag searched. She finds that the Third
Respondent’s
explanation that he had to put his hand in the bag
to move the money and the biltong is plausible. Accordingly, she
finds that
on a holistic consideration of the evidence, the Third
Respondent’s version to be the more probable version and that
the
Applicant failed to discharge the onus to prove that the
Applicant is guilty of the allegations against him.
[26]
The Second Respondent then engages in a discussion
around the sanction. I do not intend to deal with this part of the
Award, as
it will be apparent in the analysis of the evidence and the
legal position below.
[27]
In her conclusion, the Second Respondent found
that the dismissal of the Third Respondent was unfair.
Analysis of the facts
[28]
The Applicant is involved in the packaging
business and recycling in Africa. It also makes rigid plastic
packaging, trays, film
and jumbo bins or crates.
[29]
The Third Respondent was employed as a Winder
Operator since 2009. His duties include setting of machines, checking
the quality
of products, ordering product material, determining
whether packaging matched with the product, reporting deviations and
compliance
with what is referred to as HAVVP procedures.
[30]
The circumstances of the stop and search of the
Third Respondent are largely undisputed. It started with him being
suspected of
theft of toilet paper arising from a tip off. On 21
October 2022, at the end of his work shift, he was stopped and
searched by
security. Among his possessions, a roll was found inside
his bag after he emptied the contents of the bag.
[31]
Rall, one of the Applicant’s witnesses, took
pictures of the roll that the Third Respondent allegedly brought from
home in
different positions, one picture showed the roll from above
with the middle hole being visible, and another picture showed only
the side of the roll. These pictures are alleged to have been taken
on the day of the incident on 21 October 2022. As to why Rall
did not
take a picture of the Applicant’s roll, on 21 October 2022, he
stated that there was a lot happening at the security
office at the
time. This explanation makes no sense whatsoever. The picture of the
roll that the Third Respondent had allegedly
brought from home
provides no credible evidence of a comparison at the time of the
incident. Even if Rall says he compared the
toilet rolls on the spot,
the picture of both toilet rolls would have gone a long way to
support his version.
[32]
The next picture shows two rolls, with the sheet
of the rolls showing in both pictures. According to the handwritten
note accompanying
the picture, the picture on the left is the roll of
the Third Respondent, which he brought from home. The picture is
alleged to
have been taken on the day of the disciplinary hearing.
[33]
At this point, things start taking a rather
bizarre turn. Firstly, there is no explanation as to why only the
roll that the Third
Respondent allegedly brought from home was taken
on the day of the incident. While the picture of the sample of the
Applicant’s
roll was not taken on the same day side by side
with the one the Third Respondent allegedly brought from home.
[34]
At the time of the disciplinary hearing, it was
apparent that the proverbial horse had bolted. Taking a picture
comparing the roll
that the Third Respondent allegedly brought from
home (for purposes of the hearing, it would appear) next to the roll
of the Applicant
does not provide proof of any offence having been
committed by the Third Respondent on 21 October 2022.
[35]
It is simply unbelievable that the Third
Respondent was then allowed to place the suspected stolen roll,
which, according to his
version, he had brought from home, back in
his bag on 21 October 2022, and he was allowed to leave with it. This
is captured on
video, and this evidence is common cause. It is the
explanation by Arendse, the Employer’s other witness, that is
incredible.
He stated that he did not pay attention as the security
office was very busy at the time. This is just unfathomable.
[36]
The above shows firstly that the Applicant’s
case was botched from the moment of the investigation. The
photographs of the
suspected stolen roll, together with a photograph
of the Applicant’s toilet roll, would have almost invariably
proven the
guilt or otherwise of the Third Respondent. Conveniently
or by some stroke of ‘misfortune’, Rall and the rest of
the
contingent of the Applicant’s staff did not deem it
necessary to ensure that those comparative pictures were taken for
posterity.
[37]
Having failed on the above score, a failure that
is frankly inexcusable, there was a second opportunity to preserve
the evidence
necessary to prove the guilt or otherwise of the Third
Respondent; instead, the Third Respondent was allowed to leave the
premises
with the suspected stolen roll. The real and best evidence
was lost by the Applicant at this juncture. The Third Respondent was
not stealing the roll; implicitly, he had permission to leave with
the roll because, once again, all those present did not deem
it
necessary to confiscate the ‘exhibit’.
[38]
It is even more troubling considering the scene
was teaming with the Applicant’s security personnel. The
calibre of those
who witnessed the incident on 21 October 2022 on
behalf of the Applicant needs only to be enumerated to be understood.
Those present
included: Rall (Manager), Kwati (Security Officer),
Arendse and (Safety and Security Manager). These were not junior
security personnel
who did not know their responsibilities; their
collective skills set ought to have enabled them to deal with the
scene more professionally
and effectively than they did. They failed
in the execution of their duties.
[39]
In truth and in fact, the Applicant’s case
collapsed at its inception, namely at the point of the initial
investigation of
the alleged theft or attempt to remove company
property without authorization and permission. The initial
investigation was heavily
compromised.
Legal Analysis
[40]
Schedule
8, item 7 of the Labour Relations Act
[1]
as amended provides that:
‘
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 or not-
(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]
I will return to item (a) above in a moment. In terms of items
(b)(i), (ii) and (iv), there is no dispute that those issues are
common cause on the facts of this case. Regarding item (b)(iii), the
Third Respondent argued that in the case of one Ronel, who
was found
guilty of possession of company toilet paper, the rule was not
applied consistently. In its reply, the Applicant indicated
that she
was, in fact, dismissed, but she was reinstated on appeal.
Accordingly, this issue can be put to rest on the basis that
the rule
has been applied consistently.
[42]
I turn now back to item (a), namely: “
whether
or not the employee contravened a rule or standard regulating conduct
in, or of relevance to, the workplace?”.
[43]
It has been held that the
mental element is present if the employee knew that the goods did not
belong to him/her and he/she intended
to remove the property
permanently from the owner, knowing that he/she is not entitled to do
so. However, where the employee genuinely
believes that he/she is
authorised to consume the goods, he/she is not guilty of theft
[2]
.
[44]
In light of the manner in which the investigation of the alleged
offence was handled as illustrated above, there is only one
conclusion
that can be reached. And that is that the Third Respondent
did not
contravene a rule or standard regulating
conduct in, or of relevance to, the workplace. The Applicant failed
to prove on a balance
of probabilities that the Third Respondent
committed:
‘
Theft
or unauthorized possession of Company Property: in that on the 21
st
of
October 2022, security found a roll of toilet paper in your
possession after your shift had ended. The toilet paper was the same
brand as what the company are using.
Dishonesty: In that you
attempted to remove company property without authorization and
permission.’
Conclusion
[45]
As indicated above, once the Second Respondent found that the
Applicant failed to discharge the onus to prove that the Third
Respondent
was guilty of the allegations against him, that should
have been the end of the enquiry as she identified it in the Award.
Accordingly,
whether dismissal was an appropriate sanction, as a
separate enquiry, does not arise where the guilt of the Third
Respondent has
not been proved on a balance of probabilities nor
inferred from the Applicant’s conduct. It is apparent that the
Second Respondent
acted
ex abudanti
cautela
in
addressing the issue of the sanction, and she cannot be faulted for
that.
[46]
Accordingly, the Second Respondent reached a decision that a
reasonable arbitrator would have reached when presented
with the same
set of facts and the same legal material.
[47]
On her calculation of the back pay, it is obvious that she made a
typographical error in the Award, she clearly stated
that a period of
17 months had by then lapsed since the dismissal and that the delays
were beyond the control of either of the
parties. She accordingly
deemed it appropriate to limit the backpay to 10 months. Hence the
amount of R120 000 on the basis that
the Third Respondent was earning
R12 000 per month.
Order
In
light of the above, there is no reason to interfere with the Second
Respondent’s Award, save to update the relevant dates.
Accordingly:
1. The application
is dismissed.
2. The dismissal of
the Third Respondent, Theodore April, was substantively unfair.
3. The Applicant is
ordered to reinstate the Third Respondent with full back pay from the
date of dismissal.
4. The back pay is
limited to 10 months' compensation, amounting to R120 000.
5. The above amount
is to be paid to the Third Respondent by 28 February 2026.
6. The Third
Respondent must report for duty on 2 February 2026.
7. There is no
order as to costs.
M Mkhatshwa
Acting
Judge of the Labour Court of South Africa
Appearances:
For the
Applicant:
Mr N Du
Preez
Instructed
by:
Van Der Spuy & Partners
For the Third
Respondent: Ms Z. Hlongwane
Instructed
by:
National Union of Mineworkers of South Africa
[1]
Act 66 of 1995, as amended.
[2]
Matsekoleng
v Shoprite Checkers (Pty) Ltd
[2013]
2 BLLR 130
(LAC).