Ronè Bester (Scott) v Small Enterprise Finance Agency SOC Ltd and Others

The appellant, an advocate and head of legal services, was transferred to the respondent employer under section 197 of the Labour Relations Act when her previous organisation was taken over. Following conflicts with a senior manager, she was suspended and later dismissed for alleged absenteeism and insolence. Prior to the dismissal, her salary was stopped and she tendered a resignation intended to be immediate, which the employer rejected, insisting on a notice period. Before the notice period expired, the employer proceeded with a disciplinary enquiry in her absence and dismissed her. The CCMA found the dismissal to be both substantively and procedurally unfair and awarded her compensation equivalent to eight months’ remuneration. On review, the Labour Court upheld the finding of unfair dismissal but reduced the compensation to one month on the basis that she had resigned. The appellant appealed solely against the reduction of compensation.

The appeal was upheld. The Labour Court judgment was set aside. The CCMA award dated 9 September 2015 granting eight months’ compensation was restored and ordered to be paid in full within 10 days. The respondent was ordered to pay the appellant’s taxable costs in both the review and appeal proceedings.

This case clarifies that a tendered resignation does not necessarily limit or reduce compensation for unfair dismissal, particularly where the resignation is not voluntary and the employment relationship is ultimately terminated by dismissal. It reinforces the limited grounds on which courts may interfere with an arbitrator’s discretion under section 194(1) of the LRA and affirms that compensation serves broader fairness objectives beyond contractual notions of loss.