Total South Africa (Pty) Ltd v Meyer and Others

The first respondent, Reon Meyer, was employed by Total South Africa (Pty) Ltd from 1987 and seconded to its subsidiary, Total Coal South Africa (TCSA). Following the sale of TCSA to Exxaro, Total informed Meyer that there were no suitable vacancies and retrenched him effective 31 December 2014. His dismissal was later found to be both substantively and procedurally unfair due to a lack of meaningful consultation under s 189 of the Labour Relations Act 66 of 1995 (LRA). Total paid him a severance package of approximately R2.9 million. Meyer secured employment with TCSA from 1 January 2015, but without recognition of his prior service or post-retirement medical benefits (PRMB). Total had previously granted PRMB to nine employees retrenched in 2010 who met similar criteria. Meyer alleged that Total’s refusal to grant him PRMB constituted an unfair labour practice.

The appeal succeeded in part. The Labour Court’s order was set aside and replaced with an order awarding the first respondent six months’ compensation for unfair dismissal. Total was ordered to provide the post-retirement medical benefit to the first respondent, effective from the date of dismissal, subject to set-off of amounts already paid. Total was ordered to pay the first respondent’s costs of the appeal.

The case clarifies the discretionary nature of compensation for unfair dismissal under the LRA, reaffirming that such compensation is primarily a solatium but that severance payments and financial consequences remain relevant to what is just and equitable. It also reinforces the principle that differential treatment in the provision of employment benefits must be objectively justified, strengthening protections against arbitrary employer conduct in unfair labour practice claims.