SOUTH AFRICA: A VERY BRIEF SUMMARY OF LABOUR

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SOUTH AFRICA: A VERY BRIEF SUMMARY OF LABOUR LEGISLATION

ANDDISPUTERESOLUTIONMECHANISMS

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Background

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Followingthefirstdemocraticelectionsin 1994,aseries ofstatutesregulatinglabourrelationsand

employment wereenacted. Themost importantoftheseweretheLabourRelationsAct66of1995

(LRA)the BasicConditionsofEmploymentAct75of1997(BCEA)andtheEmploymentEquityAct55

of 1998 (EEA). These statutes formed a detailed legal framework for the regulation of labour

relationsandemploymentlaw. 

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 The LRAcovers both collectivelabour lawandcertain aspects ofindividualemploymentlaw.

TheLRAregulatesorganisationalrights,collectivebargaining(at enterpriseleveland sectoral

levelthrough registeredbargainingcouncils)andstrikesandlockouts.Atthelevelofindividual

employment law, the LRA provides protection for employees against unfair dismissal and

specific unfair labour practices (unfair suspension, unfair disciplinary action etc). It also

providesforthe  mechanisms and institutionsfortheresolutionofdisputes.This includes the

establishment of the Commission for Conciliation, Mediation and Arbitration (CCMA),

bargainingcouncils,privateagenciesandlabourcourts.

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 TheBCEAprovidesafloorofminimumtermsandconditionsofemployment.Minimum wages

aredeterminedbytheNationalMinimumWageCommissionwhichsetsa  nationalminimum 

wageandcansetminimumwagesabovethatforsectorsnotregulatedbysectoralcollective

bargainingthroughbargainingcouncils.Wagesandothertermsandconditionsareotherwise

determined by collective agreements at enterprise level or at a sect ora l level through

bargainingcouncils.

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 TheEEAprohibitsunfairdirectandindirectdiscriminationbyemp loyer sagainstemployeeson

awiderangeofgrounds.Italsorequiresemployerstoimplementaffirmativeactionmeasures.

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Theinstitutions

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TheLRAhasestablishedthefollowinginstitutionsrelevantto disputeresolution:

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 The CCMA: a dispute resolution body that resolves individual and collective disputes. The

CCMAisafreeservicefundedbytheState.Itprovidesconciliationandarbitrat ionprocesses.

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 Bargaining councils: registered sector level councils established by employer organisations

andtradeunionsfor sectorallevelcollectivebargainingandprovidingcomplianceanddispute

resolutionserviceswithintheirjurisdictions.Importantly(andunsuccessfullychallengedinthe

courts) the Minister of Labour and Employment can extend bargaining council collect ive

agreements to ‘non‐parties’ in that industry if the bargaining council is sufficiently

representative. The CCMA accredits bargaining councils to conduct their dispute resolution

functionstoensureproperstandards.

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 Private agencies: the CCMA may accredit private agencies to conduct many of its statutory

disputeresolutionfunctions.Severalprivateagencieshavebeenaccredited.

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 The La bourCourts:these arespecialistcourtsestablished by the LRA forthe adjudication of

employment and labour disputes. The Labour Court has the same status as a High Court. 

Appeals go  to theLabour Appeal Court, whichhas the same status ofthe Supreme Court of

Appeal. The only appeals permitted from the Labour Appeal Court are to the Constitutional

Court.TheLabour Courthas an original jurisdictionto considercertaintypes of disputes,for

example, those concerning the dismissal of strikers, as well as contractual disputes. It also

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exercises a supervisory jurisdiction in that it can review and set aside arbitration awards

issuedbytheCCMA,bargainingcouncilsandprivateagencies.Theordinarycivilcourtsretain

theirrighttoconsidercontractualdisputesbetweenemployerandemployee.

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TheMechanismstoResolveDisputes

One of the objectives of the LRA is to attempt to  ensure that labour disputes are addressed and

resolvedexpeditiously. Itprescribesthatdisputesthatfallwithinits ambitmustfirstbereferredto

conciliation(withfewexceptions).Ifthereis abargainingcouncilwithjurisdictionoverthedispute,

theconciliation will beconducted by that council. Ifthere is no bargaining council, the conciliation

willbeundertakenbytheCCMA.

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The LRA draws a distinction between disputes that can be the subject of a strike or a lockout and

thosethatmay be resolved througharbitration by arbitrators appointed bya bargainingcouncil or

theCCMA.

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Ifconciliationfailstoresolveadispute,threepossibilitiesarise,subjecttothenatureofthedispute:

 For most interest disputes,employees acquire the right to  strike and employers acquire the

righttolockoutemployees,providedthatcertainfurthersimpleproceduralrequirementsare

met.Ifemployees comply withtheserequirements, employees are protected from dismissal

forparticipatinginthestrike.

 For most rights disputes, parties may refer their disputes to arbitration at the CCMA, a

bargainingcounciloraprivateagency.

 In respect of a limited number of rights disputes, parties may refer those disputes to the

LabourCourt.Insomecases,employeesmayhaveachoiceofroutestofollow.

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Overviewofthenatureofdisputes

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By far the majority of disputes referred to dispute resolution institutions concern alleged unfair

dismissal disputes or that an emp loyee has been the subject of an unfair labour practice. The

grounds on which an employer can fairly dismiss an employee aremisconduct, an employee's

incapacity (poor performance or ill health) or the employer's operational requirements. A fair

procedure must also befollowed prior tothedismissal. In certaincases,dismissals are regardedas

beingautomaticallyunfair,suchdismissalsarisingfromanti‐uniondiscriminationorforparticipating

in a protected strike. Unfair labour practice disputes are defined and include allegations of unfair

suspensions, the unfair failure to promote an employee and unfair employer conduct relating to

trainingortheprovisionofbenefits.

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Other types of disputes that may be the subject of arbitration or adjudication are those that deal

withdiscrimination allegations,equal paydisputes,the interpretationofc ollective  agreementsand

the granting of organisational rights and those that relate to whether or not a strike is protected.

ThelattertypeofdisputeusuallyoccurswhenanemployerapproachestheLabourCourtasamatter

ofurgencyforaninjunctionagainstastrikeongroundsthatitisnotprotected.

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MinimumpaydisputesundertheNMWUarereferredtotheCCMA.

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TheLRAhasovertheyearsbeenamendedtoextendextraprotectiontovulnerableemployees.This

includesemployeesoftemporaryemploymentservices,part‐timeemployeesandpeopleemployed

intermsoffixed‐termcontracts.Asignificantnumberofdisputesinvolvingtheenforcementofthese

rightsarebeingreferredtotheCCMA.

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HaltonCheadle

TanyaVenter

06August2020