1140 Compensation as a remedy for unfair dismissal

1140 Compensation as a remedy for unfair dismissal

R200.00

Section 194(1) of the LRA states as follows:

194              Limits on compensation

(1)                The compensation awarded to an employee whose dismissal is found to be unfair either because the employer did not prove that the reason for dismissal was a fair reason relating to the employee’s conduct or capacity or the employer’s operational requirements or the employer did not follow a fair procedure, or both, must be just and equitable in all the circumstances, but may not be more than the equivalent of 12 months’ remuneration calculated at the employee’s rate of remuneration on the date of dismissal.

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1140 Compensation as a remedy for unfair dismissal

An award of compensation as envisaged in ss 193 and 194 read together constitutes a payment for of an impairment of an employee’s dignity such as the right to be “treated fairly, with care and concern and to enjoy the benefits of an adequate consultation process, as provided for in the LRA”. [i] An impairment of any right arising from the employment relationship may lead to an award of compensation. For example, if an employee’s right to a procedurally fair disciplinary hearing is impaired, the remedy is an award of compensation.

[i] Total SA (Pty) Ltd v Meyer & others (2021) 42 ILJ 1696 (LAC)

 

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