In the case of TOYOTA SA MOTORS (PTY) LTD V COMMISSION FOR CONCILIATION, MEDIATION AND ARBITRATION AND OTHERS (DA6/ 2021) [2023] ZALAC 5 (14 FEBRUARY 2023) a fixed-term employee of the employer sought reinstatement after being dismissed for alleged negligence. The employee had been working for the employer as a crane driver since 2010 on repeatedly renewed three-month fixed-term contracts. The dismissal arose from a charge of negligence related to failing to check a clamping device on the crane.
After he unsuccessfully appealed against his dismissal internally, he approached the CCMA seeking reinstatement with back pay.
The Arbitrator found that the employee was not negligent and awarded him compensation limited to the balance of his fixed-term contract. The Union, however, believed that reinstatement should have been awarded and initiated a review application in the Labour Court (LC).
The LC set aside the compensation award and ordered the reinstatement of the employee from the date of his dismissal with no loss of earnings or benefits. The employer took the matter on appeal, arguing that there was no permanent relationship established and that reinstatement was not legally permissible.
The employee claimed that he had a written permanent employment contract, but later conceded that the employer had not signed it due to his pending disciplinary hearing. The Labour Appeal Court found that no permanent contract had been concluded between the parties and that reinstatement was not a viable remedy in this case.
The Court noted that in situations where the fixed-term contract has expired before the finding of unfair dismissal, reinstatement or re-employment is not legally permissible. The Arbitrator is obliged to order the payment of compensation under such circumstances.
The Labour Appeal Court (LAC) upheld the appeal and confirmed that the compensation awarded, limited to the balance of the employee's fixed-term contract, was just and equitable. The employee did not appeal the quantum of compensation.
In conclusion, the employee's claim for reinstatement was dismissed, and the compensation awarded by the Arbitrator was upheld by the LAC.
#fixedtermcontract #labourlaw #HR