Rawlins v Kemp t/a Centralmed

Dr Kemp, a medical practitioner, employed Dr Rawlins in February 1997 to run a satellite medical practice in Bloemfontein. In 1997 Dr Rawlins informed Dr Kemp that she was pregnant and arrangements were made for maternity leave from February 1998. Shortly before the leave commenced, Dr Kemp suggested that she look for alternative employment due to the financial difficulties of the practice. Dr Rawlins understood this to amount to a dismissal. After an acrimonious exchange, Dr Kemp issued a letter confirming her dismissal with effect from the end of February 1998. Dr Kemp soon conceded that the dismissal was unfair and repeatedly offered to reinstate Dr Rawlins, but she refused each offer, claiming a breakdown in trust. Dr Rawlins found alternative employment at a higher salary within months and suffered a maximum financial loss of about R40 000. Litigation ensued solely over whether she was entitled to compensation, and if so, in what amount.

The appeal was dismissed, and the order of the Labour Appeal Court denying compensation to Dr Rawlins was upheld.

The case is significant for reaffirming that compensation for unfair dismissal under South African labour law is compensatory, not punitive, and may be refused where an employee unreasonably rejects a genuine offer of reinstatement. It also endorses the principle that employers have a ‘right to right a wrong’ by offering reinstatement and underscores judicial deference to the Labour Appeal Court as a specialist labour tribunal.