Case Law[2025] ZALAC 37South Africa
Truworths Limited v Peter (CA15/2024) [2025] ZALAC 37 (5 June 2025)
Headnotes
an investigator had been appointed, and ultimately, it was determined that the appellant was unable to find evidence supporting the allegations of sabotage, and the investigation was closed as of April 2022.
Judgment
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## Truworths Limited v Peter (CA15/2024) [2025] ZALAC 37 (5 June 2025)
Truworths Limited v Peter (CA15/2024) [2025] ZALAC 37 (5 June 2025)
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sino date 5 June 2025
THE
LABOUR APPEAL COURT OF SOUTH AFRICA, CAPE TOWN
Not
Reportable
Case
no: CA15/2024
In
the matter between:
TRUWORTHS
LIMITED
Appellant
and
THEMBELANI
PETER
Respondent
Heard:
14 May 2025
Delivered:
05 June 2025
Coram:
Savage JA, Musi
et
Waglay AJJA
JUDGMENT
WAGLAY,
AJA
Introduction
[1]
This appeal, with the leave of the court
a quo,
concerns a special plea relating to the Labour Court's jurisdiction
to determine an automatically unfair dismissal dispute,
alternatively,
an alleged unfair labour practice dispute, in
circumstances where such dispute/s had not been referred for
conciliation prior to
its referral to the Labour Court for
adjudication.
[2]
The employee, Mr Thembelani Peter,
opposes the appeal without any legal assistance.
[3]
The appellant has sought condonation for
the late filing of its appeal record, which was late by a total of
seven court days. The
reasons for the delay are explained and
acceptable to this Court. Condonation is thus granted, and the appeal
is reinstated.
Background
[4]
The dispute carries a long history, most
of which is not relevant for the purposes of this appeal. In that
respect, a brief discussion
of the background will follow.
Employment
history
[5]
The employee was employed with Truworths
(appellant) as a TDC Technician from 15 August 2017 until his
dismissal in July 2022.
[6]
From March 2018 until 9 October 2018,
the employee and appellant were embroiled in an internal dispute in
which the employee asserted
an entitlement to overtime payment. When
such payment was not forthcoming, and the employee was disciplined
for a refusal to work
overtime without pay, a referral to the CCMA
was made, which culminated in a settlement between the parties.
[7]
Approximately one year after the
overtime issue was resolved and on 15 October 2019, the employee
referred a complaint to the appellant’s
anonymous tipline
alleging that company assets, including electrical cables, trolleys,
and electrical appliances, had gone missing,
and he urged the
appellant to investigate the issue.
[8]
On 16 November 2019, the employee
received a response to his tip-off in which he was provided with a
reference number and was informed
that his tip had been compiled into
a report and escalated for further action.
[9]
It is common cause that the employee’s
tip-off resulted in an investigation and the discipline of certain
implicated employees.
[10]
On 4 December 2019, the employee
submitted another tip-off, this time the employee alleged that he had
suffered victimisation, harassment
and bullying due to the fallout
from his initial tip-off of October 2019, particularly from the
distribution centre manager, Mr
James Steward and his ‘allies’.
The employee alleged that the appellant had shared his initial
tip-off with certain
implicated employees who, in turn, attempted to
‘cover their tracks’. The employee further alleged that
the perpetrators
had gone as far as bringing in a non-employee into
the workplace to pose as an auditor who went on to interrogate the
employee
to determine the extent of his knowledge surrounding the
reported misconduct.
[11]
The employee alleged that the appellant
had failed to protect him as a whistleblower despite him having made
a protected disclosure.
[12]
Nothing else is said in the statement of
case with respect to the alleged victimisation experienced in
December 2019, and by all
accounts, it appears it was business as
usual between the employee and appellant in the time after his second
tip-off of December
2019.
[13]
In March 2020, the employee had applied
for a position within the appellant, and although he had been
shortlisted and interviewed,
his application was unsuccessful.
[14]
In the years of 2020 and 2021, the
employee made numerous allegations of sabotage within the appellant’s
distribution centre.
As the allegations went, a ghost technician had
been sabotaging the employee’s work or company machines, and in
one instance,
the employee had even seen a specific member of the
Appellant’s staff walking away from a machine which was later
determined
to be tampered with. The allegations of sabotage had been
reported, meetings between the employee and senior managers of the
distribution
centre had been held, an investigator had been
appointed, and ultimately, it was determined that the appellant was
unable to find
evidence supporting the allegations of sabotage, and
the investigation was closed as of April 2022.
[15]
Also, sometime in March 2022, the
employee became injured on duty, requiring attendance at the company
doctor and a further consultation
with a private doctor. It was the
evidence of the employee that the appellant, more particularly his
line manager, insisted that
his injury be referred for a workers'
compensation assistance (WCA) claim, despite his protests to the
process. Over the course
of three months, from May 2022 to July 2022,
some back and forth occurred between the employee, his line manager
and the safety
manager over the submission of the WCA claim and the
provision of a certified ID copy on the part of the employee. After
numerous
requests for a copy of his ID from his line manager, the
employee in an email dated 7 July 2022 to his manager indicated that
he
felt harassed by her conduct, that he had provided her with the
necessary documentation as requested (sans the ID copy) and he
requested that she stop communicating with him regarding the matter.
[16]
On 20 May 2022, the employee received a
disciplinary letter in terms of which he was accused of gross
insubordination, insolence
and breach of company policy and
procedure.
[17]
The basis of the disciplinary letter and
the accusations therein can be summarised as follows:
17.1.
Gross insubordination in that, despite
being instructed to escalate any concerns he might have to his direct
line manager in respect
of the alleged tampering and sabotage of
machines, and to refrain from conducting his own investigations
through the questioning
of staff members, the employee on 26 April
2022 allegedly conducted his own investigation into a breakdown of a
machine, resulting
in him questioning staff. The appellant in its
correspondence alleged that the conduct of the employee contributed
to a disharmonious
work environment, that he had ignored a direct
instruction and that his conduct jeopardised the integrity of the
appellant’s
investigation.
17.2.
Failure to abide by a reasonable
instruction on 13 April 2022 as, when the employee requested time off
to attend to a personal appointment,
which time was granted with the
stipulation that he return to work after an hour, the employee failed
to return to work at the
stipulated time (or for the remainder of the
day) and did not notify his line manager that he would not return to
work, and as
a result, the company was unable to timeously make
alternative arrangements to attend to unforeseen machine breakdowns.
17.3.
The employee had on short notice,
cancelled his facilitation of a training session without a valid
reason, despite having been aware
of his duty to facilitate the
meeting, thus refusing a reasonable instruction.
17.4.
Ignoring a valid instruction in that on
12 and 13 May 2022, the employee was requested to bring tools to the
distribution centre
in order to complete planned maintenance. This
instruction was ignored by the employee, resulting in a delay in the
maintenance
works planned.
17.5.
Failure to abide by the company’s
Mobile Device Policy, which required him to immediately report any
damage to a company handset
issued to him. The employee failed to do
so, and it was only when he was requested to bring his handset into
work did he disclose
to his line manager that it had become damaged.
[18]
The disciplinary letter constituted a
final written warning, valid for a period of 12 months, however, the
letter went on to state
that, if the employee did not agree with the
contents of the allegations against him, he would be entitled to a
disciplinary hearing
in which he would be able to respond to the
allegations. The employee indicated that he did not accept the
contents of the disciplinary
letter and instead wished for an
opportunity to defend himself.
[19]
On 25 May 2022, the employee was issued
with a notice to attend a disciplinary hearing scheduled to take
place on 27 May 2022 to
answer to the allegations as contained in the
disciplinary letter. It appears that after the hearing, the final
written warning
was confirmed.
[20]
On 8 July 2022, one day after his email
to his line manager regarding the request for a copy of his ID was
sent, the employee received
a suspension letter in terms of which he
would be suspended, pending the outcome of a disciplinary
investigation.
[21]
On 18 July 2022, the employee was issued
with a disciplinary notice, he was facing charges of insolence, gross
insubordination and
incompatibility. While the charges of insolence
and insubordination are in respect to his conduct and correspondence
dated 7 July
2022, which the appellant viewed as rude, unprofessional
and disrespectful towards his line manager, the charge of
incompatibility
alleged that the employee had continuously failed to
work in harmony within the workplace and that he had failed to
conduct himself
in an acceptable and respectful manner.
[22]
The disciplinary hearing was held on 20
July 2022, and it was the evidence of the employee that he had been
bullied, discriminated
against and threatened during the course of
the hearing. Furthermore, it was alleged that he was unable to
cross-examine witnesses
without intervention from the chairperson,
who would prevent him from asking specific questions or raising
specific topics. When
he raised that he was unfairly treated during
the hearing, he alleged that he had been threatened and given
warnings.
[23]
The employee was subsequently found
guilty of the charges and dismissed on 20 July 2022.
Arbitration
proceedings
[24]
The employee referred an unfair labour
practice dispute to the CCMA, which he summarised on the referral as
relating to having received
a final written warning without prior
warning, and that the disciplinary hearing was procedurally unfair,
biased and not in accordance
with company policy and procedure. With
regards to the substantive issues, he indicated that he had been
victimised, discriminated
against and shouted at by witnesses during
the disciplinary hearing. The employee sought his reinstatement.
[25]
The employee alleged that his claim had
been incorrectly assigned by the CCMA as a section 186(2)(a)
complaint relating to unfair
conduct by the employer relating to the
promotion, demotion, probation or training of an employee or relating
to the provisions
of benefits to an employee.
[26]
In the form referring his matter to the
CCMA for conciliation, the employee recorded that he was referring
both an unfair labour
practice dispute and a constructive dismissal
dispute.
[27]
On 30 August 2022, a con/arb hearing was
held (the appellant was not in attendance), and on 12 September 2022,
a default arbitration
award was issued.
[28]
In the arbitration award, the
commissioner refers to an exchange between himself and the employee
in which the commissioner had
asked the employee to clarify the
nature of his dispute based on the allegation that the information on
his referral had been changed
without him being informed. When asked
whether the dispute constituted an unfair labour practice or an
unfair dismissal dispute,
the employee stated that the commissioner’s
conduct amounted to cross-questioning. In that respect and after
having regard
to the categorisation of the nature of the dispute in
the employee’s referral and the evidence led during the
arbitration,
the commissioner found that the employee’s dispute
was two-fold, one of unfair labour practice which related to a final
written
warning and a claim of constructive dismissal. Based on the
evidence before him, the commissioner found that, as the employee’s
dismissal referral had been made outside of the 30-day period, the
CCMA lacked the necessary jurisdiction to deal with the constructive
dismissal dispute and, rather curiously, proceeded to deal with the
unfair labour practice dispute.
[29]
On the unfair labour practice dispute,
the commissioner found that the employee had not perpetrated an
unfair labour practice against
the employee, and accordingly, the
referral was dismissed.
Labour
Court
[30]
After having received the commissioner’s
findings, the employee referred his claim to the Labour Court. His
statement of claim
contained several allegations against the
appellant, ranging from failure to pay overtime to the appellant,
non-payment of salaries
and creating a hostile, toxic and unbearable
working environment in an attempt to force the employee to resign.
[31]
Relevant for the purposes of this
judgment are the allegations regarding his tip-off of October 2019.
[32]
In
his amended statement of claim, the employee alleged that his
tip-offs in October and December 2019 amounted to protected
disclosures
in terms of the Protected Disclosures Act
[1]
(PDA) and, as such, he had suffered an occupational detriment, making
his dismissal automatically unfair.
[33]
The
appellant excepted to the amended statement of claim on 11 grounds,
including that the Court
a
quo
lacked jurisdiction to hear the automatically unfair dismissal
dispute or the unfair labour practice dispute, as they had not been
referred for conciliation in terms of section 191(5)(b) of the Labour
Relations Act
[2]
(LRA).
[34]
The appellant’s special pleas were
upheld, except for the jurisdictional pleas relating to the Labour
Court’s power
to hear the automatically unfair dismissal
dispute and/or unfair labour practice dispute without conciliation of
the disputes.
[35]
In its submissions before the court
a
quo
, the appellant argued that the
disclosures made by the employee in December 2019 did not amount to a
protected disclosure as it
was not made in good faith but rather in
retaliation for the overtime dispute that had occurred between the
parties, which gave
rise to the employee being disciplined. This
averment, which is not common cause and is in fact a dispute of fact,
is not a matter
that may be raised by a party raising a special plea.
[36]
The appellant further argued that had
the employee been of the view that his suspension or dismissal was
unfair due to his protected
disclosures, he should have filed an
automatically unfair dismissal dispute to the CCMA within the
stipulated time period.
[37]
The Labour Court held that it had
jurisdiction to determine the automatically unfair dismissal dispute,
despite the employee’s
failure to comply with the time periods
as stipulated in referring the matter for conciliation.
[38]
The appellant’s appeal thus turns
on the limited question of the Labour Court’s jurisdiction to
decide the automatically
unfair dismissal dispute in the absence of a
referral of the dispute for conciliation.
[39]
The employee, as I stated earlier, was
unrepresented and unhelpful. He simply persisted in saying what he
wished, failed to respond
to questions from the bench, nor was he
prepared to consider the useful suggestions proposed by the bench.
Evaluation
[40]
Although it is not necessary, because of
the statements made by the employee, I feel the need to make some
comment on the employee’s
claim (without dealing with the merit
of what he says) before dealing with the issue before this Court.
[41]
The dispute between the parties invokes
two provisions of the LRA concerning protected disclosures, first
being section 186(2),
which defines an unfair labour practice as when
an employee suffers an occupational detriment (other than a
dismissal) on account
of having made a protected disclosure as
defined in the PDA. In the second instance, section 187(1)(h)
provides that where an employee
has been dismissed on account of
having made a protected disclosure and thus the employer is in
contravention of the PDA, such
dismissal is automatically unfair.
[42]
The PDA aims to make provision for
procedures in terms of which employees and workers may disclose
information regarding wrongful
or illegal conduct of their employer
or their co-employees, and to provide for the protection of such
whistleblowers against retaliation
for the disclosures made.
[43]
Section 3 of the PDA prohibits
retaliation for the making of protected disclosures, termed as
occupational detriments. Occupational
detriments include the
discloser being subjected to
inter
alia
disciplinary action; being
dismissed, suspended, demoted, harassed or intimidated; or being
denied appointment to any employment,
profession or office.
[44]
The PDA defines a disclosure as:
‘…
any
disclosure of information regarding any conduct of an employer, or of
an employee or of a worker of that employer, made by any
employee or
worker who has reason to believe that the information concerned shows
or tends to show one or more of the following:
(a)
That a criminal offence has been committed, is being committed or is
likely to be committed;
(b)
that a person has failed, is failing or is likely to fail to comply
with any legal obligation
to which that person is subject;
(c)
that a miscarriage of justice has occurred, is occurring or is likely
to occur;
(d)
that the health or safety of an individual has been, is being or is
likely to be endangered;
(e)
that the environment has been, is being or is likely to be damaged;
(f)
unfair discrimination as contemplated
in Chapter II of the Employment Equity Act, 1998 (Act 55
of 1998), or
the Promotion of Equality and Prevention of Unfair Discrimination
Act, 2000 (Act 4 of 2000); or
(g)
that any matter referred to in paragraphs (a) to (f) has been, is
being or is likely to be deliberately
concealed…’
[45]
To qualify as a protected disclosure
under section 6 of the PDA, such disclosure must be made to the
discloser’s employer
and must be made in good faith. The PDA at
s 6(1)(a) provides that the disclosure must be made substantially in
accordance with
any procedure authorised by the employer for
reporting, and the employee must be aware of the procedure to be
followed.
[46]
Section 4 of the PDA provides that any
employee who has been subjected to or may be subjected to an
occupational detriment in breach
of section 3 of the Act may approach
any court having jurisdiction, including the Labour Court, for
appropriate relief or pursue
any other process allowed or prescribed
by any law.
[47]
To determine whether the Labour Court
has jurisdiction to hear the automatically unfair dismissal and/or
the unfair labour practice
dispute, it is necessary to consider each
claim separately as the LRA prescribes distinct dispute resolution
processes to be followed,
depending on the nature of the claim.
Automatically
unfair dismissal
[48]
Section 191 of the LRA sets out the
dispute resolution process to be followed where a dispute about the
fairness of a dismissal
or a dispute about an unfair labour practice
arises.
[49]
In the context of an automatically
unfair dismissal dispute, the Act requires that the dispute be
referred to a bargaining council
or the CCMA within 30 days of the
date of dismissal for conciliation. Where conciliation fails and the
dispute remains unresolved,
the employee may refer their dispute to
the Labour Court for adjudication if the alleged reason for the
dismissal is that of an
automatically unfair dismissal.
[50]
Although an employee in an automatically
unfair dismissal dispute has the discretion, as conferred to them in
terms of section 5(b)
of the LRA; to refer their dispute to the
Labour Court for adjudication or to proceed to arbitration within the
council or CCMA,
such an employee must refer their dispute for
conciliation before exercising this discretion. Conciliation is not
discretionary.
[51]
Accordingly, it is not open to an
employee to bypass the conciliation process to directly approach the
Labour Court for adjudication
of their automatically unfair dismissal
dispute. Thus, where an employee alleges that their dismissal is in
relation to the making
of a protected disclosure, and that he has
suffered an occupational detriment, such dismissal constitutes an
automatically unfair
dismissal, and such an employee must first
approach the CCMA to conciliate their dismissal dispute before
referring their claim
to the Labour Court for adjudication.
[52]
In this matter, the employee referred
his dispute to the CCMA for conciliation. In his 7.11 form, the
employee indicated that his
dispute concerned an unfair labour
practice and a constructive dismissal. In summarising the facts of
the dispute, he indicated
the following:
‘
1.
Given a final written without any prior warning.
2.
Failure to follow the right procedure during a disciplinary hearing.
3.
Witnesses giving false information.
4.
Outcomes of the disciplinary hearing not a true and honest reflection
of the hearing.’
[53]
In discussing the procedural and
substantive issues of his dispute, the employee indicated that:
‘
1.
There was a dispute against the chairperson…
2.
Failure to follow Truworths policies by holding a biased disciplinary
hearing.’
And
‘
Victimised
and discriminated against during disciplinary hearing. Shouted at by
witnesses. Witnesses giving false information.’
[54]
The CCMA set the matter down for a
con/arb hearing, which implies that if the dispute(s) fail to be
resolved at the conciliation
stage, the dispute will immediately
proceed to arbitration. At the commencement of proceedings, the
commissioner attempted to determine
what was the true nature of the
dispute, whether it constituted an unfair labour practice or a
constructive dismissal. As recorded
earlier, if regard is had to what
the commissioner states in his findings, he was getting little or no
assistance from the employee
and was accused of “cross-questioning
him when in fact the Commissioner appears to have done so to get
clarity on the disputes.
Having regard to the referral form and the
evidence presented, the commissioner established that the disputes
concerned both an
unfair labour practice dispute in that the employee
had been issued with a final written warning without prior warning,
and a constructive
dismissal dispute.
[55]
Firstly, it needs to be said that the
commissioner made a finding at the hearing of the con/arb. He found
that the dismissal referral
was not made timeously, and the CCMA
therefore had no jurisdiction to entertain the dismissal dispute. It
must be noted that the
reference to the out-of-time referral had to
be the referral to conciliation, as there was no referral of the
dispute to arbitration.
[56]
Much is made about the referral of the
dismissal dispute being referred to by the employee as a constructive
dismissal (or, as he
suggests, it was the CCMA itself that determined
the dismissal as constructive dismissal). The label attached to
dismissal referred
to conciliation is of no consequence. The issue as
to the kind of dismissal only becomes relevant at the time of
arbitration or
adjudication, and if unclear, it might only become
clear after all the evidence is presented at the arbitration or the
adjudication.
[57]
For
purposes of conciliation though, the label attached to the dismissal
is irrelevant, as the purpose of the conciliation of a
dismissal
dispute, as the word suggests, is to try and get the parties to
settle their dismissal dispute.
[3]
Had conciliation taken place, then, notwithstanding that the referral
was fashioned as a constructive dismissal, the employee would
still
be able to proceed with his automatically unfair dismissal claim that
he had referred to the Labour Court, in that the Labour
Court would
have had jurisdiction to entertain the matter, and the special plea
would fail. However, because the CCMA held that
it had no
jurisdiction to deal with that dismissal dispute, then, absent the
setting aside of the CCMA findings, that finding stands
and amounts
to a failure by the employee to refer his dismissal dispute for
conciliation.
[58]
In the circumstances, the employee could
only have been able to proceed with his dismissal dispute if he had
successfully reviewed
the CCMA finding that his referral was not
timeously made, or he had successfully obtained condonation for the
late referral of
his dismissal dispute.
[59]
In the result, the Labour Court had
erred in dismissing the appellant’s special plea as, absent a
proper referral of the dismissal
dispute for conciliation, the Labour
Court has no jurisdiction to adjudicate the referred dismissal as
there was proper referral
of the dismissal dispute for conciliation-
a condition precedent before referring a dismissal dispute to
arbitration or adjudication.
[60]
In the premises, the following order is
made:
Order
1.
The late filing of the appeal record is
condoned, and the appeal is reinstated.
2.
The appeal is upheld, with no order as
to costs, and paragraph 1 of the Labour Court judgment under case no:
C07/2023 is substituted
with the following order:
‘
1.
The employer’s special pleas are upheld with no order as to
costs.’
WAGLAY
AJA
Savage
JA and Musi AJA concur.
APPEARANCES:
FOR
THE APPELLANT:
B Conradie of Bradley Conradie Halton
Cheadle
FOR
THE EMPLOYEE:
Self
[1]
Act
26 of 2000, as amended.
[2]
Act
66 of 1995, as amended.
[3]
See:
Association
of Mineworkers and Construction Union and Others v Ngululu Bulk
Carriers (Pty) Limited (In Liquidation) and Others
[2020]
10 BLLR 959
(CC);
September
and Others v CMI Business Enterprise CC
(2018)
39 ILJ 987 (CC).
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