Technikon South Africa v Mojela and Others (JR 1614/2002) [2003] ZALC 80; (2003) 24 ILJ 1737 (LC); [2003] 10 BLLR 1075 (LC) (11 July 2003)

60 Reportability

Brief Summary

Labour Law — Unfair dismissal — Reinstatement — Employee dismissed prematurely under fixed-term contract — Employer later offered reinstatement — Employee refused to return to work and sought compensation — Arbitrator found dismissal unfair and awarded compensation — Court reviewing arbitrator's award, finding flawed reasoning and errors in law, ultimately ruling employee not entitled to compensation as reinstatement offer was reasonable and not accepted.

IN THE LABOUR COURT OF SOUTH AFRICA
(HELD AT JOHANNESBURG)
Case   No.   JR 
1614/2002
In the matter between
TECHNIKON SOUTH AFRICA  
Applicant  
  
and 
MOJELA, SAMEUL P   First Respondent
THE COMMISSION FOR CONCILIATION
MEDIATION AND ARBITRATION               Second 
Respondent
MR RALEFATANE                       Third 
Respondent  
JUDGEMENT
 
GAMBLE,  AJ:
1. The   first   respondent   was   employed   by   the   applicant   on   a   fixed   term  
contract which was to terminate automatically on 30 March 2002. The first

respondent was to render research services to the applicant in terms of  
that contract. In addition, he was to assist with the marking of exam scripts  
in terms of certain other separate contracts concluded with the applicant.
2. On   28   November   2001   the   professor   under   whom   the   first   respondent  
worked held a cocktail  party at which she unexpectedly announced the  
imminent departure of the first respondent. Of course, this was some 4  
months premature.
3. The third respondent rightfully regarded this a s a dismissal and lodged a  
complaint   with   the   second   respondent   (“the   CCMA”)   on   20   December  
2001. In the prescribed Form 7.11, which accompanied the complaint, the  
first respondent claimed ‘ reinstatement and compensation ’.
4. The   applicant   investigated   the   circumstances   surrounding   the   first  
respondent’s   departure   and   on   10   December   2001   it   informed   him   in  
writing that it was looking into the matter.
5. During   January   2002   the   applicant   was   of   the   view   that   the   first  
respondent‘s termination of employment “may have been unfair” (it did not  
say whether this was either substantively or procedurally or both) and on  
28   January   2002   it   informed   the   first   respondent   both   verbally   and   in

writing that he had been reinstated and that he was to recommence duties  
the following day.
6. The   first   respondent   did   not   return   to   work   on   29n   January   2002   but,  
rather, he attended a conciliation meeting convened by the CCMA. This  
meeting was held pursuant to the referral of the unfair dismissal dispute as  
set out in paragraph 3 above.
7. It is not clear whether the first respondent informed the CCMA conciliator  
of his reinstatement the previous day. On the probabilities it seems he did  
not. In any event, the conciliator issued a certificate of outcome on that  
day reflecting that the matter remained unresolved.
8. Thereafter the first respondent refused to return to the applicant’s employ.  
He did, however, receive payment of his outstanding remuneration up to  
28 January 2002.
9. On   30   January   2002   the   first   respondent   then   referred   the   dispute   to  
arbitration.   The   relief,   which   he   sought   in   the   referral   form,   was  
“compensation until end of contract”.
10.   An   arbitration   was   duly   convened   before   the   third   respondent   (“the

arbitrator”)   on   19   August   2002.   After   hearing   the   evidence   of   various  
witnesses the  arbitrator issued  an award  on the  same day in  which he  
found   that   the   first   respondent’s   dismissal   was   both   procedurally   and  
substantively   unfair.   He   awarded   the   first   respondent   12   months  
compensation at the rate of R3400 per month.
11. The applicant now seeks to review the arbitration award on a variety of  
grounds.   The  application  was   duly  served  on   each  of   the  respondents,  
none of whom has elected to oppose.
12. Mr. Olivier, who appeared for the applicant, contended that the arbitrator’s  
reasons   in   the   award   were   not   justifiable   in   relation   to   the   evidential  
material   before   him   at   the   arbitration   and   that   he   failed   to   properly  
consider the evidence led at that hearing.
13. I agree with Mr. Olivier that the arbitrator’s reasoning is seriously flawed,  
both in relation to the evidence and the legal conclusions drawn therefrom.
14. In  a  brief  discourse  on the  law  of contract  the arbitrator  found that  the  
applicant’s offer to reinstate the first respondent constituted a “new offer of  
employment” by the applicant, which the first respondent was entitled to  
refuse or to accept. The following passage (using the  ipsissima verba  of the

arbitrator and the citation of the parties as they were before him) illustrates  
the arbitrator’s lack of understanding of the basic tenets of employment  
law:  
“   An offer without acceptance is not contract. In casu, employment  
relationship   was   terminated   by   respondent.   Same   respondent  
made an offer of employment to the applicant who decide to reject  
such offer because he was already dismissed. He has a choice of  
accepting   or   repudiating   the   offer.   For   respondent   to   withdraw  
dismissal, does not invalidate the applicant’s dispute. It would be  
incorrect to say that a party is entitle to terminate and re­enforce  
contract as it please”.
15. I do not believe that much need be said about this proposition of law other  
than   to   observe   that   it   precludes   an   employer   from   ever   correcting   its  
ways and affording a dismissed employee the primary remedy under the  
Labour Relations Act (“the LRA”).
16. A   further   error   in   the   award   relates   to   the   arbitrator’s   finding   that   the  
applicant’s offer of reinstatement should have been unconditional. While  
the   applicant’s   written   communication   to   the   first   respondent   of   his  
reinstatement   clearly   implies   that   he   is   to   be   reinstated   (and   not   re­

employed) with full benefits, the arbitrator found that the evidence before  
him   demonstrated   that   “the   respondent   stated   that   reinstatement   was   with   a  
condition of back pay. If he did not accept the offer he was not supposed to accept the  
back   pay.”   In   the   circumstances   the   arbitrator   was   of   the   view   that   the  
reinstatement was conditional. 
17. Finally, the arbitrator’s reasoning in relation to the compensation payable  
to the applicant is seriously flawed.
 
17.1. In the first place, he found that, but for his dismissal, the applicant  
would have been remunerated for a further four months and that  
this constituted his actual patrimonial loss. However, the arbitrator  
did   not   take   into   account   the   “back   pay”   received   by   the   first  
respondent upon his reinstatement.
17.2. Having found that the first respondent’s actual loss of income was  
the   equivalent   of   four   months’   remuneration,   the   arbitrator   then  
went on to consider compensation payable in respect of his finding  
that the dismissal was procedurally unfair. The arbitrator found in  
this regard that twelve months’ remuneration was fair even though  
only nine months had passed since dismissal.

17.3. It does not appear that the arbitrator considered the amendments to  
the provisions of section 194(1) of the LRA, which had come into  
force  on  1  August  2002  at  all   in  making  his  award.  This  section  
afforded   him   a   complete   discretion   in   relation   to   compensation,  
limited   only   to   a   maximum   of   twelve   months’   remuneration.  
Fouldien & Others v House of Trucks  [2002] 12 BLLR 1176 (LC).
17.4. In   fact   the   arbitrator   gave   no   reasons   at   all   for   awarding   the  
maximum amount of compensation, whether under the old or new  
section 194(1). His conclusions are as follows:
“It should not make a difference as to whether or not contract have  
been renewed. The issue is that at the time of termination there still  
existed   an   employment   relationship   between   the   parties,   which  
should have been respected. Failure to adhere to Schedule 8 of the  
LRA renders the procedure irregular. It is fair that the applicant be  
awarded compensation based on procedural defect.”
17.5. Finally   in   calculating   the   compensation   payable   to   the   first  
respondent, the arbitrator has not properly considered the evidence  
before him. Under the heading “Back ground Details” in his award,  
the arbitrator found that the first respondent earned  ±R3200 – R3800  
per   month.   The   evidence   of   the   first   respondent   however,   was   that   he  
earned between R2800 and R3600 per month.  He went on to explain that

his salary varied because he was only paid for the number of days which  
he actually worked in any given month.
18. In the light of the aforegoing, I am satisfied that the arbitration award falls  
to be reviewed in accordance with the principles determined by the Labour  
Appeal   Court   in   cases   such   as   Carephone   (Pty)   Ltd   v   Marcus   N.O.   &  
Others  (1998)   BLLR   1093   (LAC)   and   Shoprite   Checkers   (Pty)   Ltd   v  
Ramdan N.O.  (2001) 22 ILJ 1603 (LAC).
19. On the evidence before me it seems as if there may have been room for  
an argument that the arbitration should not have been conducted because  
the matter had effectively been settled by the applicant’s offer to reinstate  
the first respondent. However, Mr. Olivier argued (correctly in my view),  
that the point had not been properly taken in the CCMA proceedings and  
that it would not be appropriate to approach the matter on that basis.
20. Mr. Olivier then argued that this court should approach the case along the  
lines of the decisions of the Labour Appeal Court in   Johnson & Johnson  
(Pty)   Ltd   v   CWIU   (1998)   12   BLLR   1209   (LAC)   and   Mkonto   v   Ford   &  
Others  (2000)   7   BLLR   786   (LAC).   Accordingly,   it   was   contended   that  
where   the   employee   refused   to   take   up   a   reasonable   offer   of  
reinstatement the employer should not be saddled with an obligation to

pay compensation.
21. There was scant evidence before the arbitrator about the reasons for the  
first   respondent’s   refusal   to   resume   employment   when   the   offer   of  
reinstatement   was   made.   The   high­water   mark   in   his   evidence   under  
cross­examination was the following:
“  and why did you not report to us after you have received it? …No because I was afraid  
to call you.  Why? … Because I feel that my matter is now in the hands of the CCMA, I  
give you chance to solve the matter, but you failed to solve the matter.”
The first respondent also stated, in rather vague terms, that he no longer trusted  
the applicant and that he was afraid that the applicant was going to “ treat [him] very  
bad”.
22. In   my   considered   view,   the   first   respondent   has   not   proffered   a  
satisfactory   explanation   as   to   why   he   did   not   take   up   the   offer   of  
reinstatement.   I   am   left   with   the   distinct   impression   that   he   was   more  
interested   in   a   financial   settlement   than   reinstatement   –   that   much  
appears from the relief sought at arbitration (see paragraph 9 above).
23. The   employer   in   the   present   case   appreciated   the   error   which   its   staff  
member had made in dismissing the employee for no apparent reasons  
and without any hearing. It endeavoured to remedy that wrong by offering  
the   first   respondent   the   primary   remedy   under   the   LRA:   unconditional

reinstatement.
24. The   approach   to   be   adopted   in   this,   matter   was   well   summed   up   by  
Conradie JA in  Mkhonto’s case , supra, at page 772 and 11: 
“I propose exercising the discretion conferred by section 194(1) of the Act  
myself. It is in the interest of fairness that this trifling dispute, which has  
already gone far further than it should have, should not be allowed to go  
further still. The appellant’s refusal to accept the reinstatement offer was  
grossly   unreasonable.   There   are   doubtlessly   cases   where   the  
circumstances of an unfair dismissal are so degrading that it would not be  
fair to expect an employee to accept an offer of reinstatement. This is not  
such a case. The appellant did not indicate that her remaining in the third  
respondent’s   employ   for   two   months   after   having   been   told   of   her  
dismissal caused her any anguish”.
25. In the circumstances I make the following order:
1. The   arbitration   award   handed   down   by   the   third   respondent   in   his  
capacity   as   Commissioner   under   the   auspices   of   the   second  
respondent, under case number GA 29288/02 dated 19 August 2002 is  
hereby reviewed and set aside and substituted by the following “ The

first respondent is not entitled to any compensation arising out of his  
dismissal by the applicant on 28 November 2001”.
2. There is no order as to costs. 
___________________
P.A.L. Gamble
(Acting Judge of the Labour Court)
Date of hearing: 11 July 2003
Date of Judgment: July 2003
For the Applicant: Mr. J. Olivier of Brink Cohen Le Roux & Roodt Inc.
For the Respondent: No appearances