AECI Industrial Chemicals, a division of AECI Limited v Lelaka and Others

The first respondent, Mr Gideon Lelaka, an employee of AECI Industrial Chemicals with 28 years’ service and a clean disciplinary record, was dismissed for gross misconduct following an altercation with a female colleague, Ms Vanessa McIlroy, on 15 October 2020. Ms McIlroy alleged that Mr Lelaka acted in an intimidating and threatening manner during a work-related discussion in his office. A grievance and disciplinary process followed, resulting in Mr Lelaka’s dismissal. He referred an unfair dismissal dispute to the National Bargaining Council for the Chemical Industry. The arbitrator (third respondent) found Mr Lelaka guilty of misconduct but held that dismissal was too harsh and ordered his retrospective reinstatement without backpay. AECI applied to the Labour Court to review and set aside the arbitration award, contending that the sanction decision was unreasonable.

The review application was dismissed, and the arbitration award reinstating the first respondent without backpay was upheld. No order as to costs was made.

The case reaffirms the Sidumo reasonableness standard in reviews of arbitration awards and confirms that dismissal for misconduct not involving dishonesty or deceit may be substantively unfair where long service and a clean record indicate that the employment relationship can be restored. It underscores that failure to lead evidence of a breakdown in trust is not automatically fatal to an employer’s case, but that arbitrators retain a discretion to assess sanction holistically.