The Employment and Labour Relations Act, 2004 places the burden of justifying a termination on the employer, which shapes how disputes work.
The test
Termination is unfair if the employer fails to prove that the reason for the termination:
- Is valid
- Is related to the employee's conduct, capacity or compatibility
- Or is based on the operational requirements of the employer
Who decides
In deciding whether a termination is fair, an employer, arbitrator, or the Labour Division of the High Court takes into account any Code of Good Practice.
Written notice required
The Act requires a written termination notice before terminating a worker's services.
Section 37
Provides for unfair termination by an employer, describing the grounds and procedures to be followed and the remedies available. These provisions must be observed by both parties to the employment contract.
Fair procedure
Rule 9(1) of the Code of Good Practice Rules requires an employer to follow a fair procedure before terminating, with the procedure depending to some extent on the reasons given.
So a valid reason applied without proper procedure is still exposed.