Langa and Another v Smollan Sales and Marketing (Pty) Ltd

The applicants, Mr Mendel Ramolobane Langa and Mr Jeffrey Bonginkosi Dhludhlu, were employed as field marketers/merchandisers by Smollan Sales and Marketing (Pty) Ltd. In 2020, amid economic pressures caused by COVID-19 and changes in the FMCG retail sector, the respondent initiated a large-scale retrenchment process under section 189A of the Labour Relations Act. The respondent sought to restructure its operations by replacing existing 45-hour contracts (largely weekday-based) with 40-hour flexible contracts that included weekend work, particularly Sundays, to meet client demands and remain competitive. The applicants refused to accept the new contracts because they entailed reduced remuneration. Following consultations, the respondent terminated their employment for operational requirements. The applicants challenged the dismissals as substantively unfair.

The applicants’ unfair dismissal claim was dismissed. The court found that their dismissal for operational requirements was substantively fair. No order as to costs was made.

This case reinforces established Labour Court principles that courts will not interfere with bona fide business restructuring decisions driven by operational requirements, particularly in response to economic pressures and industry changes. It confirms that an employee’s refusal to accept altered terms of employment that are reasonably justified by operational needs may render retrenchment substantively fair.