Big Five Recruitment v Shear and Another (J668/00) [2001] ZALC 94 (28 June 2001)

55 Reportability

Brief Summary

Labour Law — Unfair dismissal — Review of arbitration award — Applicant seeking to set aside award of unfair dismissal — Third respondent employed as personnel consultant, alleged dishonesty leading to dismissal — Court finding that dismissal not established, but third respondent unreasonably refused reinstatement offer — Arbitrator's decision set aside as not reasonably connected to facts.

Sneller Verbatim/MB
IN THE LABOUR COURT OF SOUTH AFRICA
BRAAMFONTEIN CASE NO: J668/00
2001-06-28
In the matter between
BIG FIVE RECRUITMENT Applicant
and
SHEAR LARRY AND CCMA Respondent
________________________________________________________________
J U D G M E N T
________________________________________________________________
REVELAS J:
1.This is an application to review or set aside an arbitration award of the  
first respondent, in favour of the third respondent.  The application is  
brought in terms of Section 145 of the Labour Relations Act 1995, (“ the  
Act”).
2.The third respondent in this matter filed its heads of argument as late as  
25 June 2000.   It has become a very strict practice in this court that  
heads of argument which filed late are not accepted.   However, in view  
of   the   affidavit   filed   of   record   by   the   third   respondent's   counsel   I  
granted the condonation of the late filing of the heads of argument.
3.The   third   respondent   was   employed   by   the   applicant   as   a   personnel  
consultant   since   22   June   1998.     It   appears   that   Mr   Walsh   of   the  
applicant,   was   not   particularly   satisfied   with   the   third   respondent's  
work and had counselled and addressed this issue with her.  
4.On 15 October Mr Walsh wanted the applicant to attend to certain paper work  
in   respect   of   a   task   allocated   to   her,   referred   to   as   “the   Osmon

Placement”. This placement had to be completed on that day and since it  
was not, Mr Walsh contacted the third respondent on her cell phone and  
asked   her   to   return   to   work   to   complete   the   paperwork.     Mr   Walsh   was  
informed that she was on her way to see a client.  It is in dispute what  
the third respondent's real whereabouts was on this day, but according  
to   Mr   Walsh   she   had   told   to   him   that   she   had   an   appointment   with   a  
certain Mr van Staden, who upon further telephonic investigation by Mr  
Walsh,   denied   any   knowledge   of   any   appointment   with   the   third  
respondent.
5.The third respondent also then changed her version, according to Mr Walsh,  
when   confronted   and   stated   that   her   appointment   was   with   one   Joan  
Robertson and according to Mr Walsh, the third respondent could not have  
had   any   appointment   with   Mrs   Robertson   as   the   latter   only   worked   for  
half a day.  He therefore believed the applicant had lied to him.
6.The third respondent also denied that she ever had an appointment with Mr  
van Staden.
7.Mr Walsh felt that the third respondent was dishonest and this apparently  
angered   him.     It   is   common   cause   that   he   then   called   the   third  
respondent   into   his   office,   which   had   glass   windows,   and   there  
confronted her with these aforesaid allegations.   He felt that she was  
dishonest. She testified that he had called her a liar. 
8.According to Mr   Walsh, and this is what he had told the arbitrator, he told  
the third respondent that she should rather "go". On   the   other   hand   the  
third respondent testified that he told her to “pack her things and go”,  
whereas   she   had   previously   in   evidence   said   he   had   told   her   that   she  
“was fired”.   She maintained that Mr Walsh had dismissed her and that  
she had  understood that  she was  dismissed.    Mr Walsh  contended before

she had  understood that  she was  dismissed.    Mr Walsh  contended before  
the arbitrator that he never intended to dismiss the third respondent.
9.On 19  October the  third respondent's  attorneys addressed  a letter  to the

applicant claiming that the third respondent had been unfairly dismissed  
on 16 October 1998 and demanded compensation.   Here it is important to  
note that the third respondent, (at page 77 of the record), stated that  
when she went to see her attorneys she did not regard herself as being  
dismissed.  
10.It   was   argued   on   behalf   of   the   third   respondent   at   the   arbitration  
hearing, that a dismissal had indeed occurred, otherwise the applicant's  
attorneys would not have on 20   October 1998 addressed the letter to the  
third respondent's attorneys advising that the third respondent, insofar  
as it may be considered that she had been dismissed, was immediately and  
unconditionally reinstated in her position without any loss of benefits.
11.She   was   asked   to   report   for   work   on   22   October   1998.     There   was   no  
response.     Despite   this   request   the   applicant   afforded   the   third  
respondent   a   third   opportunity   to   report   for   duty   by   26   October.     On  
this   day,   when   the   third   respondent   did   not   arrive   the   applicant  
regarded her as having absconded.
12.The arbitrator found that the third respondent was unfairly dismissed and  
that she had not unreasonably refused to resume her duties.  
13.In   this   regard   it   is   significant   that   the   applicant   offered   a   full  
investigation into all of the allegations made in the letter written by  
the   third   respondent's   attorneys.     According   to   her   evidence   during  
cross­examination, the third respondent stated that she did not want to  
return to work because Mr Walsh would continue to give her warnings and  
finally dismiss her.
14.The arbitrator remarked that he was "aware that the labour court has held  
that if an employee unreasonably refuses an offer of reinstatement which  
is   made   in   good   faith   and   within   reasonable   proximity   of   the   date   of

is   made   in   good   faith   and   within   reasonable   proximity   of   the   date   of  
dismissal,   the   refusal   to   accept   the   offer   without   good   cause   may  
disallow an employee from seeking and receiving compensation."

15.There is no evidence, and the arbitrator gives no reason as to why, and  
makes   no   specific   finding   either,   that   the   applicant's   offer   was   not  
made in good faith.  There is nothing on the evidence before the second  
respondent to suggest that it was made in bad faith.  The offer was also  
twice repeated without any reservation.  The offer was also made clearly  
in   very   close   proximity   to   the   dismissal,   being   made   on   the   second  
working   day   after   the   incident   took   place   and   may   repeated   two   days  
later.
16.Insofar as the question is concerned whether the refusal of the applicant  
to return to work was reasonable, the second respondent merely accepted  
that the third respondent was humiliated because she was called a liar  
in front of third parties.  This is factually incorrect. He spoke to her  
in his office.  The fact that it had glass windows does not render it as  
part of the public area.
17.On the applicant’s version, the third respondent had lied to him about her  
whereabouts   on   two   occasions   and   shirked   her   duties.     In   such  
circumstances an employer is entitled to demand from an employee where  
she   had   been   all   day   and   if   he   had   been   given   information   which  
indicated   misconduct,   most   certainly   Mr   Walsh   was   entitled   to  
investigate this. It was not open to the third respondent to avoid an  
investigation by refusing to accept the offer of re­employment.
18.The third  respondent’s refusal  to return  to work  was thus  expressed as:  
"no, so that he can give me written warnings and make good his mess up ". 
In my view, such an answer indicates that the third respondent did not  
want to  afford the  applicant an  opportunity to  remedy the  defect that  
existed, as it would prejudice her claim for compensation.   If she was  
innocent of the misconduct as alleged by Mr   Walsh, this would have been

innocent of the misconduct as alleged by Mr   Walsh, this would have been  
proved at a hearing and she could have remedied the matter there.   If  
she was then dismissed and she felt the dismissal was unfair she could

then pursue other remedies from there, such as invoking the mechanisms  
of the Labour Relations Act and refer the dispute to the Commission for  
Conciliation, Mediation and Arbitration.   It is in my view not open to  
an   employee   to   frustrate   such   an   investigation   and   the   remedy   formula  
contained in  section 194(1)  of the  Labour Relations  Act should  not be  
abused.
19.In Johnson & Johnson (Pty) Ltd. v CWIU  1999 (20) ILJ 89 LAC [1998] 12 ELLR  
1209 LAC, the Labour Appeal Court stated as follows at 1219J to 1220E:
"If a dismissal is found to be unfair solely for want of compliance with the proper
procedure, the Labour Court or an arbitrator appointed under the LRA, does have a
discretion whether to award compensation or not. If compensation is awarded, it
must be in accordance with a formula set out in section 194(1), nothing more,
nothing less. The discretion not to award compensation in the particular
circumstances of a case, must of course, be exercised judicially. The compensation
for the wrong in failing to give effect to an employee's right to a fair procedure is
not based on patrimonial loss or actual loss, it is in the nature of a solatium for the
loss of the right and is punitive to the extent that employers who breach the right
must pay a fixed penalty - the party who committed the wrong is usually not
allowed to benefit from external factors which might have ameliorated the wrong
in some way or another, so too in this instance. The nature of an employee's right
to compensation under Section 194(1) also implies that the discretion not to award
that compensation may be exercised in circumstances where the employer has
already provided the employee with substantially the same kind of redress [always
taking into account the provisions of Section 194(1)] or where the employer's
ability and willingness to make that redress frustrated by the conduct of the
employee."

employee."
20.Another   matter   in   point,   is   Mkhonto   v   Ford   &   Others   2000   (21)   ILJ   1312  
LAC.  This judgment concerned a matter where it was not disputed by the  
employer that the dismissal was procedurally unfair, as indeed the CCMA

commissioner   found   it   was.     The   dispute   centred   around   an   offer   of  
reinstatement made to the employee immediately following the dismissal.  
The   Labour   Court   held   that   by   making   such   an   offer,   the   employee   had  
been offered substantial redress and that the award of compensation for  
her   procedurally   unfair   dismissal   was   insupportable.     In   this   matter  
Conradie   JA,   held   that   " without a consideration of this aspect of the case
(referring to the letter with an offer of reinstatement) the first respondent
misconceived the whole nature of the inquiry. The inquiry was not merely whether
the appellant was entitled to compensation according to the formula in Section
194(1) of Act 66 of 1995 (“The Act”) but whether she should have received any
compensation at all.” (See also: Johnson & Johnson (Pty) Ltd v Chemical Workers
Industrial Union (1999) 20 ILJ 89 LAC at 991 to 100A.)
21.In Scribante v Afgold Ltd Hartebeesfontein Division  2000 21 IlJ 1864 (LC),  
it was held as follows at 1872 A­C in the context of a retrenchment: 
"Having weighed up all the authorities, in my view, the relevant factors to be
taken into account in determining whether to award compensation or not are the
following:
- Whether the employer has already provided the employee with substantially the
same kind of redress;
- Whether the employer's ability and willingness to make that redress is frustrated
by the conduct of the employee;
- The degree that the employer deviated from the requirements of a fair procedure;
and
- Whether the employer secured alternative employment for the employee. “
(See also: Fourie & Another v Eskol Ltd 2000 21 ILJ 2018 LC at 2034G to 2035H).
22.The   second   respondent   did   not   apply   his   mind   to   the   issue   whether   the  
third respondent was indeed offered substantial redress and unreasonably  
refused to accept it.   The conduct of the third respondent was clearly

refused to accept it.   The conduct of the third respondent was clearly  
motivated   in   pursuance   of   compensation.     The   third   respondent   was   in

fact,   and   in   law,   not   entitled   to   any   compensation,   and   the   first  
respondent’s finding to the contrary, is not reasonably connected to the  
facts of the matter.
23.In   the   circumstances   the   arbitration   award   issued   under   case   number  
GA48154 dated 9 December 1999 is reviewed and set aside, and the third  
respondent is to pay the applicant's costs.
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E. Revelas