Hoch v Mustek Electronics (Pty) Ltd (J 499/98) [1999] ZALC 151; (2000) 21 ILJ 365 (LC); [1999] 12 BLLR 1287 (LC) (1 October 1999)

55 Reportability

Brief Summary

Labour Law — Unfair Dismissal — Misrepresentation of qualifications — Applicant dismissed for dishonestly misrepresenting her qualifications to employer — Court finding that applicant did not possess the claimed diplomas and that her dismissal was both substantively and procedurally fair — Dismissal upheld.

IN THE LABOUR COURT OF SOUTH AFRICA
(HELD AT JOHANNESBURG)
CASE 
NUMBER: J 499/98
In the matter between:
ERICA HOCH Applicant
and
MUSTEK ELECTRONICS (PTY) LTD Respondent
__________________________________________________________________
____________
JUDGMENT
__________________________________________________________________
____________
BASSON, J
[1] The applicant, Ms Erica Hoch, was charged with dishonest conduct in that  
she   allegedly   misrepresented   her   qualifications   to   her   employer,   Mustek  
Electronics   (Pty)   Ltd   (the   respondent).   After   being   found   guilty   of   the   said  
misconduct, the applicant was dismissed  with effect from 26 August 1997 (after  
her   appeal   failed).   The   applicant   contended   that   her   dismissal   was   both  
substantively and procedurally unfair.
[2] The   matter   came   before   me   after   the   director   of   the   Commission   for

Conciliation, Mediation and Arbitration (“the CCMA”) exercised her discretion in  
terms of section 191(6) of the Labour Relations Act, 66 of 1995 (“the Act”) and  
decided to refer the dispute about the alleged unfair dismissal for misconduct to  
the Labour Court for adjudication. 
[3] The qualifications that the applicant was alleged to have misrepresented  
appear from her curriculum vitae that she presented at her initial  interview  for  
employment with the respondent in September 1990 (exhibit B23 to B30). More  
in   particular,   under   “University/College”   it   was   stated   “Hamidrash   ‘Lminhal  
(Israel)     1970 ­  1973" and  under  “degree/diploma”  it  was stated:  “Diploma   in  
Accounting; Teaching Diploma”.
[4] From her employment letter it appears that the applicant was appointed as  
a data processing manager with effect 12 September 1990 (exhibit B1 to B2). It  
was common cause that a teaching diploma would not have been relevant to her  
employment with the respondent. However, it was clear that the applicant worked  
in what was to become the accounting department of the respondent and that her  
employment   history   also   included   the   functions   of   an   accountant   (see   the  
curriculum vitae referred to above). 
[5] In fact, the applicant was at pains to point out that she had been working in  
accounting all her life (even in her present position at another company) and that  
she had occupied the position of acting financial manager at the respondent before  
being demoted (more about the demotion later). In the event, I am satisfied that a  
qualification in accounting was relevant to the type of work that she was expected  
to perform in the respondent’s employ, especially during the first four years of her  
employment.
[6] The chief executive officer of the respondent, Mr D Kan (“Kan”), admitted  
that he was satisfied with the applicant’s work at the beginning. It was common

cause that the respondent’s business was small at the time compared to the time of  
the applicant’s dismissal when it was a very big operation and a company listed on  
the stock exchange.
[7] Kan also stated that he was not overly concerned with qualifications on  
paper but was more concerned with the question whether an employee could do  
the   job.   In   fact,   he   admitted   that,   had   the   applicant   left   blank   the   spaces  
“degree/diploma”, he would have appointed her anyway on the basis of the other  
information in the curriculum vitae. However, Kan testified that, had he known  
that she had falsified information to boost her curriculum vitae, he would not have  
employed her as he placed a very high value on honesty.
[8] In order to show that the applicant did possess a diploma in accounting, the  
applicant   submitted   a   certificate   (the   translation   of   which   appeared   as   exhibit  
B40).   The   certificate   was   headed   “Management   College;   Under   authority   of  
Clerks   Union”   and   stated   that   it   served   to   confirm   that   [the   applicant]   had  
participated in “the Management  Secretaries school  of 350 hours duration, which  
has taken place in Tel Aviv in years 1969 ­ 1970" (my emphasis). Under “School/
Course” is indicated “Management  Secretaries” (my emphasis). 
[9] The applicant also submitted a “confirmation” certificate (exhibit B159)  
headed “The College of Administration, founded by the Organization of Clerks”  
and stating that  she had partaken in studies at the “Administrative   Secretaries 
School”   (my   emphasis).   Also   of   importance   was   the   fact   that   this   document  
referred only to the year 1970 and the applicant claimed to have spent three years  
at the said university ( supra at paragraph [3]).
[10]   The   applicant   stated   that   she   had   lost   all   other   certificates   when   she  
moved   house   and   could   not   obtain   documentation   from   the   said   education

institution when she visited Israel.
[11] The applicant further submitted a statement and certificates of a co­student  
instead. In terms of the statement and certificates the studies that was undertaken  
by the co­student was “Administrative  Secretaries” (my emphasis). Interestingly,  
only one year of study was indicated on the certificate: 1970. Further, the word  
“diploma”   appeared   nowhere   on   the   document   but   merely   the   word  
“certificate”and the word “university” or the name of the university in question  
appeared nowhere on the document. 
[12] More important in assessing the nature of this “certificate” are the subjects  
mentioned,   no   less   than   fifteen.   These   included   subjects   such   as   office  
management, expression in writing, relations at work, expression of material for  
print, improvement of secretary image, demographic structure of Israel, statistics,  
commercial   law,   finance   and   accounting   (exhibit   B154   to   B155).   Objectively  
speaking,   these   subjects   would   belong   in   a   course   for   secretaries   (as   the  
“certificate” also indicated ­  supra). 
[13] Moreover,   no   reasonable   person   would   conclude   on   the   basis   of   this  
documentary   evidence   that   this   “certificate”   and   the   passing   of   these   subjects  
would comprise a “diploma in accounting”. After all, a person who possessed such  
“certificate”  could hardly claim  that he or she now also had a diploma in, for  
instance, commercial law or in the demographic structure of Israel. 
[14] There is also no indication in the least that accounting was awarded any  
higher status than any of the other fourteen subjects. In the event, even if I accept  
the   applicant’s   evidence   that   an   inordinate   amount   of   time   was   spent   on   the  
subject   of   accounting,   this   still   would   not   entitle   her   to   a   claim   to   have   a  
“certificate” in accounting, let alone a “diploma”  which carries a very specific

“certificate” in accounting, let alone a “diploma”  which carries a very specific  
meaning in tertiary education terms.

[15] Further, the statement of the co­student (exhibit C2) did not state that these  
studies   of   “Administrative   Secretaries”   constituted   a   diploma   of   any   kind,   let  
alone a diploma in accounting. In fact, the statement made it clear that “statistics,  
accounts and finance” were studied as subjects “among other things”. 
[16] In my view, this documentary  evidence showed   ex facie   the documents  
that the applicant (and her co­student) merely concluded a secretaries’ course and  
did not possess a diploma either in accounting or in teaching.
[17] According to the minutes of the disciplinary enquiry on 19 August 1997  
that preceded her dismissal, the applicant admitted that she did not have the said  
qualifications. 
[18] However,   during   the   disciplinary   proceedings   (after   the   disciplinary  
hearing  was postponed and on the date of the resumption of proceedings), the  
applicant’s attorney wrote a letter to the respondent stating that the correctness of  
the said minutes was being disputed (exhibit B70 to B71). In the notice of appeal  
(exhibit   B87   to   B88)   the   applicant’s   attorney   stated   that   the   finding   that   the  
applicant did not have an accounting diploma was being attacked but as far as the  
teaching diploma was concerned this was being attacked merely on the basis “that  
a teaching diploma is irrelevant to the [applicant’s] duties at work”. 
[19] In her evidence before Court the applicant insisted that the minutes of the  
disciplinary hearing were incorrect and that she had only admitted to not having  
enough “points” for the teaching diploma (the minutes are recorded as exhibit B73  
to B75 ­ see especially exhibit B74 lines 1 to 2 and   in fine ).   The applicant did,  
however, conceed that the minute taker would have had no reason not to have  
correctly recorded the proceedings. 
[20] There was, of course, always the possibility that the applicant had tried to

reverse   the   effect   of   her   admission   of   not   having   an   accounting   diploma   by  
attacking the correctness of the minutes. It did appear that she only had problems  
with   the   minutes   where   the   minutes   were   detrimental   to   her   case   whilst   she  
admitted   the   correctness   of   the   minutes   where   they   supported   her   case.   It   is,  
however,   not   necessary   for   me   to   make   such   finding   as   I   am   satisfied   on   the  
evidence   presented   to   Court   that   the   applicant   did   not   have   an   accounting   or  
teaching diploma. 
[21] In this regard it was also significant that the applicant had offered a version  
at the disciplinary enquiries stating that, at her job interview in September 1990,  
she had indeed told Kan about her lack of qualifications. It was clear that this  
defence of the applicant rested on the contention that she had “come clean” about  
her lack of qualifications (albeit only in regard to the lack of points in regard to the  
teaching diploma) already at her interview with Kan in September 1990. 
[22] This defence was raised in terms of  the minutes of the postponed enquiry  
on 22 August 1997 where  it was minuted that “[the applicant’s] reply was that she  
could not swear that she did tell [Kan] she did not complete her diploma” (exhibit  
B77   in fine ). Further, it was minuted at the hearing in mitigation (on 26 August  
1997)   that   “[the   applicant]   replied   that   she   remembers   telling   [Kan]   that   her  
qualifications were incomplete, but there are no witnesses to support her”(exhibit  
B82   in fine ). In the same vein, Kan was asked in cross­examination whether the  
applicant did tell him at the time of the interview in 1990 that her qualifications  
were incomplete (albeit then only in regard to the teaching diploma). 
[23] Kan repeated his answer given at the disciplinary enquiry: if the applicant

[23] Kan repeated his answer given at the disciplinary enquiry: if the applicant  
had told him about the  lack of qualifications, he would have remembered  (the  
applicant   denied   that   this   was   said   during   the   disciplinary   hearing).   In   giving  
evidence, Kan added that he would have remembered as it was highly unusual for  
a   candidate   to   admit   at   her   job   interview   that   her   curriculum   vitae   contained  
untruthful information. Indeed, on the probabilities, I believe that this would be

the case. 
[24] I   therefore   accept   Kan’s   evidence   that   the   lack   of   qualifications   of   the  
applicant was never mentioned at the job interview  in September 1990. In this  
regard   it   must   also   be   pointed   out   that   Kan   was   a   good   witness   who   easily  
admitted to facts even if they could have been construed to be detrimental to the  
respondent’s   case.   If   it   came   down   to   a   decision   based   upon   credibility   I  
accordingly also would have no problem to accept his version in preference to that  
of the applicant.
[25] Moreover, the evidence of the applicant in Court in regard to the teaching  
diploma   revealed   her   to   be   an   unsatisfactory   witness   in   regard   to   her  
qualifications. The applicant went so far as trying to persuade the Court that she  
indeed also possessed a teaching diploma. It was only with great difficulty that she  
eventually   conceded   that   she   did   not   complete   the   course   for   the   “teaching  
diploma”   and   that   she   admitted   to   not   having   such   qualification.   It   is   also  
important   to   note   that,   when   it   was   put   to   the   applicant   that   she   had   lied   in  
misrepresenting  her “teaching”  qualifications (which clearly  had been the case,  
even on her own version), she simply refused to answer the question.   
[26] In view of the documentary evidence in regard to the qualifications of the  
applicant as well as in the light of her unsatisfactory evidence in this regard I am  
satisfied that the applicant did not possess either a diploma  in accounting or a  
diploma in teaching. All indications were that the applicant merely completed a  
secretaries’ course where one of the subjects that she took had been accounting.  
By no stretch of the imagination would such course qualify the applicant for a  
“diploma in accounting” and the reasonable employer would also have viewed the  
position as such.

position as such. 
[27] In the result, the  applicant  dishonestly misrepresented  her qualifications

when she applied for a job at the respondent that entailed accounting work and  
where she even rose to the position of acting financial manager. In this sense, her  
dishonest   misrepresentation   was   relevant   in   regard   to   the   work   that   she   was  
employed to perform. 
[28] This   dishonest   act   was   repeated   when   the   applicant   (in   terms   of   the  
requirements   of   the   standards   set   by   ISO   9000)   completed   another   education  
record   for   the   respondent   in   1995   (exhibit   B21   to   B22),   stating   under  
qualifications:   “University   ­   Israel”   and   “Diploma   Teaching   and   Accounting  
(1970 to 1973)”.  
[29] The negative inference that the applicant had lied about her qualifications  
can also be drawn from the fact that the she had to be cajoled into supplying the  
respondent with her certificates which eventually had to be translated (see exhibits  
B15 to B40). 
[30] During   the   disciplinary   hearing   and   the   appeal   hearing   the   applicant  
repeated this lie about the accounting diploma and also insisted that she had such  
qualification in her evidence before Court. She was also dishonest when she stated  
that  she had come  clean  in  her initial  interview  with Kan ( supra   at  paragraph  
[24]). 
[31] In the event, I cannot accept the argument that the applicant had merely  
made an error of judgment. In fact, when the applicant eventually admitted that  
the information about the teaching diploma was false she also conceded that her  
reason   for   misrepresenting   the   information   was   because   she   had   feared   the  
reaction of her superiors at work. 
[32] In   my   view,   this   showed   not   only   that   the   applicant   knew   that   the  
respondent   placed   a   high   value   on   honesty   but   also   that   she   expected   to   be

disciplined for her dishonesty. 
[33] There is also no merit in the argument that the applicant found herself in a  
“catch 22” situation as it was common cause that she had a very good relationship  
with Kan and that she had discussed all her problems at work with him. This was,  
of course, also a further indication that the applicant did not tell Kan at the time of  
her initial interview about her lack of qualifications. It was namely highly unlikely  
that, had she done so, she would not have approached Kan already at this stage in  
1995 to remind him of the fact that she had disclosed the lack of qualifications  
earlier,  rather than resorting to the falsehood (which she admitted) on the new  
form that she was required to fill in. 
[34] Further, the mere fact that the respondent may have had dishonest dealings  
with the Receiver of Revenue does not mean that the employer does not have the  
prerogative   or   competence   to     require   high   standards   of   honesty   from   its  
employees. 
[35] This was especially true in the case of the applicant who occupied a unique  
position at the company.  
[36] The   applicant   started   working   for   the   company   since   it   was   a   small  
undertaking and it was clear that she enjoyed a very good relationship with the  
chief executive officer (Kan). 
[37] It was common cause that the applicant could approach Kan at any time to  
air her grievances (more about the grievances later).   It was also common cause  
that Kan went out of his way to accommodate the applicant.  Even when there  
were complaints about her work he asked her superiors to accommodate her. This  
did result in her demotion (as will also become clear later). However, the applicant  
who eventually worked as a debtors’ clerk, was paid a salary equal to that of  the

financial manager of the company. The applicant also received exactly the same  
company car as the financial manager and had her own office whilst the other  
debtors’ clerks worked in a communal office. 
[38] Kan also trusted the applicant with his own loan account, only he and she  
kept a key to the safe and she wrote up the cash book, working with hundreds of  
thousands of rands every  day. In other words, the applicant  stood in a  unique  
relationship of trust and confidence towards Kan. 
[39] I   have   no   doubt   that   Kan   expected   loyalty   from   the   applicant   and   that  
theirs was a trust relationship as Kan had testified to in Court. Kan stated that he  
was upset and hurt to learn that the applicant had been dishonest on at least two  
occasions and when she was persisting in her dishonest conduct. 
[40] In the event, even though the applicant was an employee of seven years’  
standing   and   was   honest   and   trustworthy   in   her   work   and   even   though   the  
applicant’s qualifications were irrelevant to her position as debtors’ clerk at the  
time of her dismissal, the respondent was, in my view, justified to consider her  
dishonesty   as   serious   enough   to   have   irreparably   damaged   the   unique   trust  
relationship enjoyed by her.  
[41] It is for the employer to set standards of conduct for its employees. As long  
as these standards are reasonable the Court will not interfere (see the requirements  
of item 7 of schedule 8 of the Act).
[42] It is also the prerogative of the employer to decide on a proper sanction  
once these standards have been transgressed. This is especially so when there is a  
personal and unique relationship of trust which has been broken by the dishonest  
misconduct of the employee.

[43] I take this view even without considering the effect of the judgment of the  
Labour   Appeal   Court   in   the   case   of   County   Fair   Foods   (Pty)   Ltd   v   The  
Commission for Conciliation, Mediation and Arbitration & others  (1999) 20  ILJ 
1701   (LAC)   which   appears   to   require   even   greater   deference   to   the   sanction  
imposed in terms of an employer’s prerogative.
[44] In the result, I cannot find that Kan had acted unfairly in his assessment  
that the employment relationship of trust had been damaged irreparably by the  
repeated insistence of the applicant that she possessed a diploma in teaching and a  
diploma in accounting. 
[45] The fact that Kan stated that the Court case had aggravated the position  
does not take the matter any further as, on the probabilities, he was also referring  
to the repetition of the lies during the Court proceedings.
[46] It is not possible for me to consider what the result of a possible “coming  
clean” by the applicant could have been or at what stage such admission of guilt  
would   have   assisted   her   case.   I   therefore   do   not   intend   to   enter   the   realm   of  
speculation.  
[47] Taking   all   of   the   above   into   consideration,   I   am   satisfied   that   the  
applicant’s dishonesty constituted a material misrepresentation in that it destroyed  
the relationship of trust between the employer and the employee. In the result, the  
dismissal   of   the   applicant   was   an   appropriate   sanction.   In   other   words,   the  
dismissal was for a fair reason and accordingly substantively fair.
[48] This  did  not  mean  that   the  respondent  did not  act   unfairly  towards the  
applicant in the circumstances which gave rise to the dismissal. 
[49] There was bad blood between the applicant and the financial manager Ms

M Orlet (“Orlet”). Orlet initially worked for the firm of auditors who audited the  
respondent’s books and this brought her into contact with the applicant at the early  
stages of her employment with the respondent. 
[50] Orlet   alleged   that   the   applicant   had   always   been   absolutely   useless   in  
accounting   and   did   not   even   know   a   debit   from   a   credit.   She   allegedly   also  
reported this to Kan. 
[51] Eventually Kan appointed Orlet as financial manager in September 1994.  
This resulted in the demotion of the applicant. 
[52] The bad feeling between the applicant and Orlet culminated in an incident  
on 18 October 1996 when the applicant called Orlet a “stupid cow”. The applicant  
alleged that she was provoked into doing so and that she was physically assaulted  
by Orlet. The applicant was issued with a final warning for insubordination but her  
own grievance was not followed up. 
[53] At   the   disciplinary   hearing   into   this   incident   the   applicant   raised   eight  
instances of alleged provocation  (see exhibits D7 to D8, that is, the applicable  
minutes). 
[54] The   applicant   thus   raised   various   issues   which   were   supposed   to   have  
constituted   a   pattern   of   harassment   or   victimisation   but   which   appeared   to   be  
without real substance when she was questioned about it in cross examination. 
[55] These issues were, for example, the taking away of a printer, tax monies  
paid   out   to   co­employees   and   the   charging   of   interest   on   employee   loans.   It  
appeared that the applicant did not so much entertain a grievance about the merits  
of these actions undertaken by the respondent but rather with the manner in which  
they were carried out (mostly by Orlet). Some of her grievances did have some

justification, for instance, she received a warning for merely discussing bonuses  
with a co­employee and received no less than a final warning from Ms Orlet, valid  
for a full twelve months.  
[56] It is significant that nowhere in the list of grievances was it noted that Orlet  
had discriminated against the applicant and insulted her on the basis of her being  
Jewish. 
[57] Orlet had vehemently denied any notion of anti­Semitism in her evidence before  
Court and Kan could not remember that such issue had ever been raised with him  
by   the   applicant   (although   he   could   not   deny   this).   In   fact,   Kan   appeared  
genuinely surprised at the allegation of discrimination. Certainly it was never put  
to him that he had discriminated against the applicant on this basis or that the  
dismissal had taken place on the basis of discrimination. After all, the applicant  
had never laid a grievance in regard to this very serious allegation and did not  
mention it during the internal hearings which led to her dismissal but it was only  
mentioned for the first time in the application to the CCMA in terms of section  
191(6) of the Act.
[58] Moreover, Kan definitely did not strike me as a person who would allow  
himself to be prescribed to by Orlet or, for that matter, any other employee. In the  
result, the applicant has failed to show that her dismissal was in any way related to  
discrimination   on   the   basis   of   anti­Semitism.   In   fact,   I   am   satisfied   on   the  
evidence before Court that this was not the case.
[59] This   is   not   to   say   that   Orlet   acted   fairly   towards   the   applicant.   Orlet  
vehemently denied that she had anything to do with the fact   that the applicant  
received smaller bonuses and no increases in salary and she stated that Kan was  
the person who decided this. However, Kan contradicted her and stated that he  
would in these matters, indeed, have acted upon recommendations by Orlet. Kan

also appeared to contradict Orlet’s evidence to the effect that the applicant was a  
totally hopeless employee although he did state that he had received complaints  
from his auditor about the applicant’s work in the period when the business was  
growing and before Orlet’s appointment.
[60] There was accordingly little doubt that Orlet had made life difficult for the  
applicant.   On   the   other   hand,   the   applicant   admitted   that   Kan   had   said   to   her  
(when she complained about Orlet) that she should make life difficult for Orlet as  
well and that she had, indeed, followed this advice. 
[61] The   applicant   also   admitted   that   she   was   not   happy   when   Orlet   was  
appointed as financial manager and when she subsequently promoted two other  
employees (the applicant’s former inferiors) as the applicant’s superiors. In fact,  
the applicant stated unconvincingly that she only found out in 1996 that Orlet was  
indeed the financial manager. This also placed the applicant’s grievance about an  
organogram which showed her demoted position in perspective. The applicant was  
unwilling   to   accept   Orlet’s   appointment   and   was   accordingly   upset   by   this  
otherwise acceptable practice. The applicant subsequently also stated that she was  
not against the organogram being published but only about its position next to her  
office door. 
[62] It is significant that the applicant never laid a proper grievance in regard to  
these acts of demotion. This strengthens the inference that there was some truth in  
the averment that she was not up to the task required of an experienced accountant  
when   the   company   grew   and   the   tasks   of   financial   manager   became   more  
complicated. 
[63] In this regard it may also be noted that the applicant admitted that Orlet  
complained   about   her   work   regularly   and   that   the   applicant   had   been   the  
responsible person for the accounting department at the beginning, although other

persons did the actual writing up of the books. After much prodding, the applicant  
also admitted that she had no problem, in principle, with Orlet being qualified for  
the position of financial manager. 
[64] It may be that the applicant was not that unhappy because she (as debtors’  
clerk) nevertheless received the same salary and benefits as the financial manager  
(see   the   discussion   above   at   paragraph   [37])   but   I   need   not   speculate   on   this  
matter. 
[65] What   was   clear   was   that   her   unique   position   had   become   a   bone   of  
contention. Orlet stated in her evidence that, from the beginning, the applicant was  
too highly paid and that she should have shared an office with the other debtors’  
clerks. 
[66] In the event, the blame for the strained working relationship rested upon  
both sides. Nevertheless, in spite of the fact that the applicant never laid a proper  
grievance,   her   demotion,   even   if   it   was   due   to   incapacity   or   poor   work  
performance, was not preceded by proper or fair procedures. It was common cause  
that she did not know beforehand of Orlet’s appointment and that she was thus  
demoted   without   prior   consultation.   The   same   happened   when   the   other  
employees were promoted above her. 
[67] In this regard it was significant that Orlet testified that Kan had merely told  
her   to   leave   the   applicant   alone   or   to   give   her   something   to   do   within   her  
competence when she complained but that Kan did not take Orlet’s advice. Had he  
done so, Orlet testified, she would have trained the applicant. One wonders, given  
the   bad   blood   between   them,   if   Orlet   would   have   been   willing   to   assist   the  
applicant   in   addressing   the   alleged   lack   of   training   or   competence.   Kan   also  
admitted that he had reassured the applicant that Orlet could not dismiss her.

[68] In view of the failure on the part of the respondent to assist the applicant in  
training her, I am particularly concerned about Orlet’s insistence in Court that the  
applicant was dismissed for incapacity due to poor work performance. After all,  
Orlet   was   her   superior   as   head   of   the   financial   or   accounting   department   and  
should have known that the reason for the applicant’s dismissal was dishonesty. 
[69] The human resources manager at the time of the applicant’s dismissal, Ms  
B Toweel (“Toweel”), stressed the fact that the dismissal was for dishonesty only.  
Her testimony was, however, unsatisfactory as she tried to persuade the Court that  
she did not know about the difficulties between the applicant and Orlet. In fact,  
Toweel was the applicant’s “observer” at the disciplinary hearing into the “stupid  
cow” incident where the applicant raised no less than eight grievances (see the  
discussion above at paragraph [54]). 
[70] Furthermore,   Toweel   presented   the   disciplinary   enquiry   with   warnings  
which   she     admitted   in   her   evidence   were   irrelevant   (the   chairperson   of   the  
enquiry   quite   properly  stated  that  he  did   not  take   these  warnings  into   account  
when deciding to dismiss the applicant). One of these warnings was made valid  
for twelve months (an inexplicably long period) by Orlet (see the discussion above  
at   paragraph   [55]).   This   leaves   one   with   the   distinct   impression   that   Toweel  
wanted to get rid of the applicant. For the reasons fully discussed above, Orlet was  
also clearly biased against the applicant.
[71] However,   I   must   reiterate   that   Kan   did   not   strike   me   as   a   person   who  
would be influenced by either Orlet or Toweel when making a decision. 
[72] Kan   was   adamant   that   the   applicant   had   been   dishonest   and   deserved  
dismissal in his view. In fact, he insisted that it was a dismissal for dishonesty.

dismissal in his view. In fact, he insisted that it was a dismissal for dishonesty.  
Clearly,   he   also   did   not   pander   to   Orlet’s   view   that   the   applicant   was   totally  
incapable of doing accounting work. I am therefore not persuaded that Kan had

played any part in a possible campaign against the applicant. In fact, the applicant  
never made such allegation and clearly regarded Kan as her ally and protector (see  
also the discussion above).  
[73] The   sad   truth   remains   that   the   applicant   was   the   author   of   her   own  
misfortune.   She   played   into   her   adversaries’   hands   when   she   persisted   in   her  
dishonest conduct and insisted that her fabrication was the truth. It was because of  
her own actions that her loyal ally (the chief executive officer, no less) lost his  
trust and confidence in her ­ a trust and confidence that was a requirement of her  
unique position within the company structures.
[74] In the event, the unsatisfactory evidence of Orlet and Toweel and the fact  
that Orlet stayed later on the day of the applicant’s dismissal as well as the fact  
that   her   letter   of   termination,   blue   card   and   transport   were   at   the   ready   (facts  
which were explained by Toweel) do not persuade me that the respondent did not  
dismiss   the   applicant   fairly   on   the   basis   of   dishonesty.   For   the   reasons   fully  
discussed   above,   I   have   found   that   the   respondent   has   shown   that   there   was,  
indeed, a fair reason to dismiss the applicant. 
[75] Nevertheless, the applicant should have been properly consulted during her  
demotion for alleged incapacity and even have been offered training and the like.  
In   other   words,   the   applicant’s   precarious   position   was   well   paid   but   badly  
managed ­ also by Kan. This unfair treatment should, in my view, be taken into  
account when making a proper order as to costs ( infra  at paragraph [82]).
[76] The applicant’s complaints about the procedural fairness of the dismissal  
were without substance.  The mere fact that Mr L Malan (“Malan”) worked for the  
respondent’s firm of attorneys and associated employers’ organisation does not,

respondent’s firm of attorneys and associated employers’ organisation does not,  
by itself, disqualify Malan from acting as chairperson of the disciplinary enquiry.

[77] It was clear that Malan was not attending as the legal representative of the  
respondent and that he was in the same position than that of a (senior) employee  
of the respondent who may also legitimately have chaired such enquiry. Both were  
on the payroll of the respondent but could be required to act as chairperson. In  
fact, the applicant did not complain that the disciplinary enquiry into the “stupid  
cow” incident ( supra) or her appeal hearing was procedurally unfair. Both these  
hearing were chaired by persons in Malan’s position. The fact that Malan wrote to  
the respondent that “[i]f there are any queries please contact the writer” did not  
take the matter any further. In fact, it was clear from a letter written by the said  
other chairperson (see exhibit B90) that this was an innocuous colloquium and did  
not show bias. 
[78] After all, these are not formal legal proceedings but an opportunity for an  
employee   to   state   her   version   of   events   in   accordance   with   the   audi   alteram  
partem requirement of procedural or natural justice (see item 4(1) of schedule 8 of  
the Act). 
[79] Further, I find nothing in the procedure followed or in the reasoning that  
indicates bias on the part of Malan. 
[80] The mere fact that the applicant was denied legal representation did not  
make   these   informal   proceedings   unfair.   In   terms   of   the   requirements   of   the  
respondent’s disciplinary code the applicant was offered the assistance of a co­
employee but they refused. There was no allegation that the respondent played any  
role in this refusal which appeared to have been the voluntary  decision of the  
employee(s) concerned.
[81] Further,   Malan   was   criticised   for   calling   Kan   to   testify   and   for   asking  
leading questions. However, Malan (exhibit B80 at paragraph 2.4) explained that  
he had decided to call Kan as a witness “in respect of certain information either

disclosed or not disclosed during the accused (sic) initial interview” (see the above  
discussion on the applicant’s allegation that she had admitted to not having certain  
qualifications already at this interview with Kan). Further, Malan’s questions to  
Kan   were   relevant   in   that   he   was   inquiring   about   the   employer’s   stance   or  
standard in regard to dishonesty and this accordingly did not show bias. 
[82] In exercising my wide discretion in terms of section 162(1) of the Act, I  
make no order as to costs against the applicant in the light of the fact that the  
applicant  was not treated  fairly  by her  direct  superiors  and the respondent  did  
nothing to alleviate her precarious position ( supra  at paragraph [75]). Further, the  
fact   that   the   respondent   was   the   successful   party,   does   not   mean   that   the  
respondent should not pay the costs reserved on 27 July 1999 as these costs were  
wasted   because   the   respondent   never   managed   to   obtain   the   relevant   affidavit  
from the former principal of the university in Israel.
[83] I make the following order:
The application is dismissed. The respondent is to pay the applicant’s wasted costs  
for 27 July 1999. There is no order as to costs against the applicant.
__________________
__________
Basson, J
On behalf of the applicant: Adv P Pauw instructed by D De Wet & Partners
On behalf of the respondent: Mr S Snyman of Snyman Van der Heever Heyns Inc
Dates of proceedings: 22 & 23 February 1999; 26 & 27 July 1999; 21, 22, 23  
& 29  September 1999 
Date of judgment: 1 October 1999