n Law, Democracy & Development - Compensation for unfair dismissal : how will the new section 194 work?

Volume 6, Issue 1
  • ISSN : 1028-1053
  • E-ISSN: 2077-4907



The Basic Conditions of Employment Amendment Act and the Labour Relations Amendment Act both came into force on 1 August 2002.

The general framework of the law relating to unfair dismissal is unchanged. Every employee has a right not to be unfairly dismissed or subjected to unfair labour practices (s 185 of the LRA). Since at least 1996 it has been clear that, in addition to dismissals that are automatically unfair, every dismissal will be regarded as unfair if the employer fails to prove that the dismissal was effected in accordance with a fair procedure and that there was a fair reason related to the employee's conduct or capacity or based on the employer's operational requirements (s 188(1)). If the Labour Court or an arbitrator finds that a dismissal is unfair the employer may be ordered to pay compensation to the unfairly dismissed employee (s 193(1)(c)).

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