University of KwaZulu-Natal v Pillay and Others

Prushothman Subramoney Pillay was employed as Chief Financial Officer of the University of KwaZulu-Natal (UKZN). Allegations arose concerning irregularities in the awarding of his Master of Commerce degree, including an alleged intimate relationship with a co-supervisor and a payment of R80 000 to her. A university tribunal chaired by retired Judge Magid investigated the matter, during which Pillay testified under oath and denied both the relationship and the payment. The tribunal rejected his denials and found he had lied under oath. Following this, UKZN instituted a disciplinary enquiry chaired by Advocate Paul Pretorius SC to determine whether the trust relationship had broken down and to recommend an appropriate sanction. During the disciplinary enquiry, Pillay admitted that he had lied to the Magid Tribunal. Pretorius SC found that Pillay’s dishonesty had irretrievably destroyed the trust relationship and recommended dismissal. The University Council unanimously accepted the recommendation and dismissed Pillay. Pillay referred an unfair dismissal dispute to the CCMA, where the dismissal was found fair. After a sequence of reviews and remittals concerning procedural fairness, the Labour Court ultimately set aside the commissioner’s second award, prompting UKZN’s appeal to the Labour Appeal Court.

The appeal was upheld with costs. The Labour Court’s judgment setting aside the commissioner’s award was itself set aside, and the commissioner’s finding that the dismissal was procedurally fair was restored.

The case affirms that, in South African labour law, procedural fairness does not necessarily require separate hearings on guilt and mitigation of sanction. It reinforces the principle that arbitration awards may only be interfered with on review if they are unreasonable, and underscores the proper application of the Sidumo reasonableness test. The judgment provides guidance on trust-based dismissals for senior employees who engage in dishonest conduct.