South African Civil Aviation Authority v Solidarity obo C.J. Beavitt

Mr C.J. Beavitt, an employee of the South African Civil Aviation Authority (SACAA), was dismissed. An arbitration conducted under the auspices of the CCMA resulted in an award dealing with the fairness of the dismissal. SACAA brought a review application to the Labour Court. On 21 October 2024, the Labour Court set aside the arbitration award on substantive fairness but upheld the finding of procedural unfairness and the accompanying compensation order. Both parties thereafter sought leave to appeal. In reconsidering the matter, the Court identified an error in the quantification of compensation, noting that compensation for unfair dismissal may not exceed 12 months’ remuneration in terms of section 194(1) of the Labour Relations Act 66 of 1995 (LRA).

The arbitration award was reviewed, set aside, and substituted with an order declaring the dismissal procedurally unfair but substantively fair. SACAA was ordered to pay compensation equivalent to 12 months’ salary. Leave to appeal was granted to both parties on the terms set out in the judgment. No order as to costs was made.

The judgment reinforces the statutory limitation on compensation for unfair dismissal under section 194(1) of the LRA and illustrates the Labour Court’s power to vary its own orders to ensure compliance with the Act. It also clarifies that significant compensation may still be awarded for procedural unfairness even where a dismissal is substantively fair, subject to judicial scrutiny and appellate oversight.