At Legal Leaders, we recently helped one of our clients win a significant victory at the CCMA. His case is a powerful example of how South African labour law protects employees, even when they work through labour brokers or temporary employment services.
Background
Mr K had worked continuously at a major national petrol company site in Durban since 2017. He was employed by a labour broker, and deployed to Company A as a Sourcing Specialist and later as a Project Contract Specialist. Over the years, he signed limited-duration contracts, but there were also years when he worked without signing a new one. Despite this, he continued receiving a salary and was treated as a permanent worker in practice.
In late 2023, Company A raised misconduct allegations against him. He was removed from the site but was still paid his full salary while the labour broker conducted a disciplinary hearing. He was eventually found not guilty. However, instead of being reinstated, the labour broker sent him a notice of termination in February 2024, claiming that Company A no longer required his services and that no new purchase order had been issued to fund his position.
The Ruling
This explanation didn’t add up. Especially since Mr K continued receiving his full salary for two more months after the “so-called termination”. The employer tried to argue that this was not a dismissal at all, but the CCMA rejected that argument. The commissioner found that Mr K had in fact been dismissed, and that the employer failed to prove any valid or fair reason for it. There was no evidence that his dismissal was based on operational needs, poor performance, or misconduct.
In the end, the CCMA ruled that Mr K had been both procedurally and substantively unfairly dismissed and awarded him R384,000 in compensation, equivalent to eight months’ salary.
What Can Employees Learn From This?
This case shows that even if you work through a labour broker or have a fixed-term contract, you still have rights under the Labour Relations Act. Employers cannot simply end your contract when it suits them or hide behind client decisions. If you’ve been working regularly, getting paid continuously, and then suddenly receive a “termination” or “end of contract” letter, ask questions. Being paid after a termination, not being given a hearing, or being removed without explanation are all signs of possible unfair dismissal.
Your employer must follow due process and must provide a lawful and fair reason if they intend to end your employment. If they don’t, the CCMA can hold them accountable, just like we did for Mr K.
