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# South Africa: Labour Appeal Court
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## Mashele v South African Reserve Bank and Others (JA128/24)
[2025] ZALAC 51; [2026] 1 BLLR 57 (LAC); (2026) 47 ILJ 168 (LAC) (21 October 2025)
Mashele v South African Reserve Bank and Others (JA128/24)
[2025] ZALAC 51; [2026] 1 BLLR 57 (LAC); (2026) 47 ILJ 168 (LAC) (21 October 2025)
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sino date 21 October 2025
SAFLII
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personal/private details of parties or witnesses have been
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Policy
THE LABOUR APPEAL
COURT OF SOUTH AFRICA, JOHANNESBURG
Reportable
Case
No: JA 128/24
In the matter between:
SIMON
MASHELE
Appellant
and
SOUTH
AFRICAN RESERVE BANK
First Respondent
COMMISSION FOR
CONCILIATION
MEDIATION AND
ARBITRATION
Second Respondent
VUYOKAZI MAY
N.O.
Third Respondent
Heard
:
18 September
2025
Delivered
:
21 October 2025
Coram:
Van Niekerk JA, Djaje AJA
et
Chetty AJA
JUDGMENT
VAN
NIEKERK, JA
Introduction
[1]
This is an appeal against a judgment delivered by the Labour Court
(per Mabaso AJ) on 15 August 2024, in which the Court
dismissed an
application to review and set aside an arbitration award issued by
the third respondent (the arbitrator). The arbitrator
had found that
the appellant’s dismissal by the first respondent (SARB) was
substantively and procedurally fair.
Background
[2]
The
appellant was employed by SARB in 2015 as a specialist legal counsel.
At the time of his dismissal, the appellant was a divisional
head,
reporting to the head of the legal department. On 17 December 2019, a
co-employee, Ms L[...]S[...] (S[...]), lodged a formal
grievance in
which she complained about persistent comments of a sexual nature
made by the appellant, her direct superior. S[...]
testified that she
had told a co-employee, Ms Simphiwe Mukhari,
[1]
a personal assistant in the legal services department, that she
intended to file a complaint of sexual harassment against the
appellant. Mukhari also levelled accusations of sexual harassment
against the appellant. In the result, SARB convened a grievance
hearing, chaired by a member of the Johannesburg Bar, the late Adv
Afzul Mosam SC.
[3]
Adv Mosam interviewed S[...] and Mukhari
and also Ms Demi Matubathuba, a lead legal counsel in the legal
services department. Adv
Mosam engaged with the appellant and
reviewed a written response prepared by him. On 5 May 2020, Adv Mosam
issued a report recommending
that disciplinary steps be taken against
the appellant.
[4]
On 21 May 2020, SARB convened a
disciplinary hearing on two charges of sexual harassment. The charges
against the appellant read
as follows:
‘
Charge
1
You are herewith
presented with two charges of misconduct, in that you allegedly, over
a period of time, engaged in incidents of
sexual harassment towards:
·
L[...]S[...]; and
·
Simphiwe Mokhare,
by acting in a manner
described herein below through verbal and physical interactions:
That –
1.
With reference to L[...]S[...]-
1.1
In January 2019, you requested from
L[...]S[...] as part of a greeting and put your hand on her bum(s)
during such hug;
1.2
On Monday, 7 October 2019, after
L[...]S[...] went for a gynecologist appointment, you insisted that
she “
had not gone to the doctor
but had made other arrangements”
and upon being presented with the gynecologist’s script you
sent “
you mean were naked. You
were naked in the doctor’s room”
.
1.3
Sometime in 2019 when you encountered
L[...]S[...] near your office on the 19
th
floor at the Head Office building in the Legal Services Department,
you made a comment about her “
size
”
to the effect that “
it is a good
size
”. You said “
unlike
some woman, the size of Thabiso and Poppy. When they undress, your
manhood refuses to stand because they are so big
”.
1.4
At a time when L[...]S[...] was on her way
to the ladies’ room and encountered you in the foyer area on
the 19
th
Floor of the Head Office building (apparently on the way to the men’s
room) you made a comment to the effect that “
she
could go in with you
”.
Charge 2
with reference to
Simphiwe Mokhare-
2.1
you from time to time made comments like “
you have a
beautiful body
” which made her feel uncomfortable;
2.2
during June/July 2017 when she had to attend at your office you asked
her to come around
the table to where you are sitting “i
n
order for her to be closer to you
”.
2.3
at times when she visited to office you made comments such as “
you
have a beautiful body
” and “
are these your real
legs
”.
2.4
that you offered for her to go on a vacation trip “
in order
to take photographs of herself
”.
[5]
The disciplinary enquiry was chaired by Adv
Michael van As of the Johannesburg Bar and continued for several
days. Adv van As found
the appellant guilty on both charges and on 8
September 2020, SARB dismissed the appellant.
[6]
The appellant disputed the fairness of his
dismissal, a matter that was ultimately referred to an arbitration
hearing before the
arbitrator.
Arbitration award
[7]
The arbitration hearing continued over some
eleven days. The arbitrator’s award summarises the evidence
given by S[...] and
Mukhari, and also a Mr Lekhooe, a SARB employee
and a Ms Phehlukwayo, the senior human resources business partner.
The appellant
then testified, after which closing arguments were
submitted.
[8]
On 7 April 2022, the arbitrator issued a
24-page award in which the appellant’s dismissal was found to
be substantively and
procedurally fair. In her award, the arbitrator
dealt with the appellant’s submissions regarding what he
contended to be
the bias of the chairperson of the disciplinary
hearing and noted that the appellant had led no evidence to
substantiate this allegation.
The arbitrator held that the averment
of bias had not been established and that the appellant’s
dismissal was procedurally
fair.
[9]
In
regard to substantive fairness, the arbitrator recorded that it was
not in dispute that SARB had in place workplace rules regarding
sexual harassment, and that the appellant was aware of the rule. What
was in issue was the existence of the misconduct alleged
– put
another way, whether the appellant had sexually harassed S[...] and
Mukhari. As will appear from the discussion below,
the arbitrator was
required to determine a dispute of fact. SARB’s case was that
the appellant had committed the acts of
misconduct recorded in the
charges and that his dismissal was fair; the appellant denied having
committed any of the acts concerned
and alleged that S[...] had led a
conspiracy to fabricate the charges against him in order to escape
performance management processes
that he had initiated. After a
summary of the evidence, the arbitrator said the following:
[2]
‘
[56]
In weighing the two contrasting versions, I took a couple of things
into account. Firstly, the evidence
lead as to the motive the
complainant possibly had in making such an allegation. The Respondent
argued that the Applicant had no
reason to lie about an allegation as
serious as that against her manager. The Applicant on the other side
argued that the motive
was to sway the Applicant away from continuing
with performance assessment which was underway. Evidence was led that
the Applicant’s
performance needed improvement during 2016/2017
period, from the time Jonathan was still her manager. Jonathan even
made comments
to this effect on page 69 of the Applicant’s
bundle. The question is, if the complainant was trying to avoid her
performance
being dealt with; why did she not do the same with
Jonathan? He was also not happy with her performance in that he went
as far
as putting her on Needs Assessment Program, just like the
Applicant did. The Applicant submitted that it was a norm to hug and
greet each other. The Applicant was part of the legal department
before he led the team. The inference that can be drawn from such
statement is that this custom of hugging each other has been in
existence in this department. Why would the Applicant then, out
of
all the males she shared hugs with as part of the custom; choose to
make such a serious allegation against the Applicant only;
when
Jonathan did the same thing about her performance, but there was no
such allegation raised.
[57]
Mention was made at some stage, though not interrogated in depth by
the parties, that the concern
surrounding the complainant’s
performance were issues that did not only begin in 2016; when the
Applicant took up employment
with the Respondent; mention was made
that the complainant’s probation was even extended. She gave
evidence in March 2021
that she joined the bank six years earlier. It
was also common cause that the Applicant found the complainant
already in the employ
of the Respondent. In my view, if she was a
person who would go to those lengths to avoid being her performance
issues being dealt
with; she would have done so way before the
Applicant joined the bank but she did not. I’m not persuaded by
such defence.
[58]
Again on the issue of motive; the second witness of the Respondent,
Mokhare, did not have any
performance issues to avoid; in fact, the
evidence from the Applicant was that the only reason she made such
allegations was because
she was recruited by the complainant to lie.
To check the credibility of the evidence of Mokhare; I considered the
possibility
that she was emotional during the proceedings to try and
get sympathy from the Commissioner. I weighed that against the way
her
defence was tested during cross-examination; and I found that the
only contradiction there was, was the fact that she stated during
cross-examination that she cried during the disciplinary hearing; and
later remembered she was reminded during re- examination
that she was
not emotional. All the other evidence she led, in my view, withstood
the test of cross-examination in that there were
no material
contradictions in her evidence.’
[10]
The arbitrator dismissed the appellant’s
submission that the complainants had delayed reporting the
allegations of harassment
as indicative of the fact that they were
false. The arbitrator noted that both S[...] and Mukhari had
testified that they were
afraid that they would not be believed, and
because they were aware that the experience would be emotionally
draining. The arbitrator
similarly dismissed the appellant’s
submission that SARB had failed to call certain witnesses, and that
an adverse inference
should be drawn from this fact. The arbitrator
found that none of the witnesses concerned were in a position to
prove or corroborate
any relevant fact. The arbitrator came to the
following conclusion:
‘
[66]
On the basis of the aforesaid; I hereby find on the balance of
probabilities, that the applicant did
harass the two employees;
L[...]S[...] and Simphiwe Mokhari that the Applicant’s conduct
in that regard was sexual in nature
in that they were directed to
people of different gender and the innuendos and conduct were sexual
in nature. The Applicant was
in a position of authority and his
conduct was directed at people who were subordinate to him. Evidence
was led that he was reprimanded,
told to stop, and that at some
stage, the employees would walk away; clearly indicating that the
conduct was unwelcome. As a person
in a position of authority; the
Applicant is reasonably expected to have known better than to use his
position of power in an abusive
way. His conduct clearly had a
negative impact on the complainant and the witness; Mokhari. The
Respondent’s duty to keep
her safe working environment for its
employees also weighed heavily in support of the Respondent’s
case. Owing to the seriousness
of the allegations against the
Applicant, I am therefore persuaded that the Respondent acted fairly
in its attempt to protect its
employees. I therefore find that the
Respondent has discharged the onus to prove fairness of the dismissal
on substantive grounds.’
[11]
On 20 May 2022, the appellant filed an
application to review and set aside the arbitrator’s award.
Labour Court
[12]
In his notice of motion, the appellant
sought to have the arbitrator’s award reviewed and set aside
and substituted with an
order “
to
the effect that the Applicant’s dismissal is procedurally and
substantively unfair, sanction imposed is harsh and ordering
the
South African Reserve Bank to reinstate him with effect from the date
of his dismissal, and without loss of income or benefit
thereof
”.
The appellant’s founding affidavit makes clear that his attack
on the award went beyond the severity of sanction
– he disputed
the arbitrator’s assessment of the evidence and her conclusion
that no reasonable decision-maker could
have reached the conclusion
that he had committed the misconduct for which he was dismissed.
[13]
The appellant’s case on review was
thus that the arbitrator had misdirected herself both by making a
decision as to the existence
of misconduct that no reasonable
decision-maker could have reached on the evidence led, but also that
the sanction of dismissal
was too harsh in circumstances where the
appellant described himself as ‘a first-time offender’.
[14]
In his supplementary affidavit, the
appellant more closely disputed the arbitrator’s assessment of
the evidence, and her conclusions
that S[...]’s version was
more probable. The appellant also disputed the arbitrator’s
conclusion that SARB had discharged
the onus of proving the
allegations of sexual harassment, bullying and intimidation brought
against him. Similarly, in respect
of Mukhari’s evidence, the
appellant averred that the arbitrator had misdirected herself by not
rejecting her evidence.
[15]
The appellant further submitted that there
was no evidence on the record of any breakdown in the employment
relationship between
him and SARB. He stated:
‘
In
present case, the First Respondent has failed to lead any evidence to
demonstrate that the Applicant has committed [a] misconduct
which is
so intolerable that the relationship between him and the employer is
not capable of being restored.’
[16]
The
Labour Court delivered an
ex-tempore
judgment. The Court made specific reference to the distinction
between a review and an appeal, and set out the proper test to be
applied on review. In particular, the Court recalled the approach set
out by this Court in
Gold
Fields Mining South Africa (Kloof Gold Mine) (Pty) Ltd v Commission
for Conciliation, Mediation and Arbitration and others
[3]
an approach that discourages a piecemeal, nit-picking approach to the
arbitrator’s assessment of the evidence and requires
that the
arbitrator appreciate the nature of the dispute, allow the parties a
full opportunity to have their say, deal with the
substantive merits
of the dispute, and arrive at a decision that falls within a band of
decision that a reasonable decision maker
could reach on the
available evidence.
[17]
The Labour Court concluded:
‘
As
much as I have indicated, during oral submissions by the parties,
that if one looks at the evidence of Ms S[...] in isolation,
there
are questions therein. But two things that prevent this court from
even interfering with such is that number one, this is
a reviewing
court, it is not an appeals court. Number two, the Commissioner did
deal with this evidence, as I have indicated that
she said she
accepts the evidence of the First Respondent, and that piggyback
point in respect of the second one, is that Ms S[...]
was not the
only one who testified against the applicant, Ms Mokhare also
testified and accused the applicant of sexual assault.
The evidence
of Ms Mokhare confirms the culture of sexual harassment perpetrated
by the Applicant, as concluded by the Commissioner.
There also are
other witnesses, which I would say are formal witnesses, but the two
main witnesses seem to confirm this culture.
Consequently, this Court
has considered all the grounds that have been raised as indicated
earlier and with respect to the inference,
the inferential reasoning,
I must indicate that this matter was not decided on that basis only.
There was direct evidence for this
misconduct. The inference that the
Commission is talking about has to be married with direct evidence of
Ms S[...] and Ms Mokhare.
Therefore, the point that Mr Mathevula has
raised to say that this Court must look at paragraph 5 of
South
African Post Office v De Lacy and Another
it is my conclusion
that it is not applicable in this matter.’
[18]
The Labour Court was consequently satisfied
that the arbitrator had not committed any material irregularity in
relation to her assessment
of the evidence, the primary basis of the
appellant’s attack on the award and further, that the award
fell within the bounds
of reasonableness. The Court accordingly
dismissed the application, with no order as to costs.
Grounds of appeal
[19]
In his application for leave to appeal, the
appellant contends that the Labour Court erred by finding that the
arbitrator considered
all the evidence and upholding her conclusion
that there was direct evidence to the effect that the appellant had
committed acts
of sexual harassment. The appellant contended that in
the present case, there was no direct evidence of misconduct, given
the contradictions
in the evidence of SARB’s witnesses. This
being so, the appellant contends that the arbitrator’s findings
were unreasonable
and that no reasonable arbitrator could have
reached the conclusion that she did based on the same evidence.
Further, the appellant
contends that the Labour Court is in finding
that the evidence of S[...] was corroborated by that of Mukhari, and
that in the circumstances,
SARB was required to present direct
evidence in the form of either video or photographic evidence,
alternatively an independent
witness to the incidents that form the
subject of the charges against the appellant. In the absence of such
evidence, the court
is required to uphold the arbitrator’s
factual findings. In particular, the appellant disputes that there is
any evidence
in the record to support the conclusion that the
incidents that form the subject of the charges against him ever took
place. The
appellant considers that the evidence given by S[...] and
Mukhari remained to be confirmed by other SARB employees, who were
never
called to give evidence, a matter that ought to have been the
subject of an adverse inference drawn by the arbitrator, particularly
since there was an indication at the outset of the hearing that these
witnesses would be called. Finally, the appellant contends
that the
court erred by upholding the arbitrator’s finding that SARB’s
witnesses were credible, and her rejection of
the appellant’s
evidence, given that there were no contradictions in that evidence.
[20]
Distilled to their essence, the appellant’s
grounds of appeal are his contention that the arbitrator placed the
onus on him
to prove the fairness of his dismissal, that the
arbitrator misdirected herself in relation to her findings that he
was guilty
of the misconduct for which he was dismissed. Here, the
appellant relies on what he contends is an inference drawn by the
arbitrator
in the face of contradictory evidence by SARB’s
witnesses. Further, the appellant contends that the arbitrator failed
properly
to assess the evidence in relation to the delay in reporting
the allegations of sexual harassment, that she ignored the
complainants’
alleged motive for lodging the sexual harassment
complaints, and that she erred by failing to draw an adverse
inference given SARB’s
decision not to call witnesses that it
had indicated would be called to give evidence. Finally, in the heads
of argument submitted
on his behalf, the appellant records that SARB
failed to lead any evidence of any breakdown in the relationship
between him and
SARB and makes reference to authorities that concern
remedy and in particular, the appellant’s desire to be
reinstated to
his position.
[21]
When pressed on the issue of the
appellant’s contention on review that the arbitration award
ought to be set aside on the
basis that dismissal was too harsh a
penalty, counsel submitted that some form of warning in relation to
future misconduct in the
form of sexual harassment was appropriate.
This submission was made in the face of a concession by the appellant
in cross-examination
that the charges disclosed serious misconduct
that, if proven, would constitute grounds for dismissal. When the
incongruity of
a defence of a blanket denial of the charges of
misconduct and the pleaded ground for review that dismissal was too
harsh a sanction
was put to counsel, he abandoned this ground of
appeal and pursued those submissions that concern what he contended
to be a material
irregularity on the part of the arbitrator in her
assessment of the evidence.
Evaluation
[22]
The
relevant regulatory framework encompasses international labour
standards, the Constitution,
[4]
the Employment Equity Act,
[5]
and the Code of Good Practice on the Prevention and Elimination of
Harassment in the Workplace (Code).
[6]
All of these instruments take as their point of departure the values
of personal integrity, dignity, equality, and the necessity
for the
working environment to be free of sexual harassment.
[23]
ILO Convention 2019 (No 190) concerning the
Elimination of Violence and Harassment in the World of Work was
ratified by South Africa
on 29 November 2021. The Convention obliges
member states that ratify the Convention to adopt measures to prevent
and eliminate
violence and harassment (defined to include a range of
unacceptable behaviours and practices) in the world of work.
[24]
The Code was adopted in fulfilment of
international law obligations consequent on the ratification of
Convention 190 and regards
all forms of workplace harassment as acts
of unfair discrimination. Item 5 of the Code deals specifically with
sexual harassment,
defined as a form of unfair discrimination on the
grounds of sex, gender or sexual orientation. ‘Sexual
harassment’
is broadly defined to encompass a range of
behaviour and conduct. The Code provides that conduct amounting to
sexual harassment
may include:
‘
5.2.5.4
sexual attention, advances or proposals; or other behaviour,
whether
explicit or implicit, including suggestions, messages, advances,
attention or proposals of a sexual nature;
…
5.2.5.6
verbal conduct such as innuendos, suggestions, hints,
sexual
advances, comments with sexual overtones, sex-related jokes or
insults, graphic comments about a person’s body, inappropriate
enquiries about a person’s sex life, whistling of a sexual
nature and the sending by electronic means or otherwise of sexually
explicit text;’
[25]
The
Code recognises that all forms of harassment in the workplace have
their roots in an abuse of power. In
McGregor
v Public Health & Social Development Sectoral Bargaining Council
& others
[7]
,
the Constitutional Court noted that “
[S]exual
harassment occurs at the intersection of gender and power, producing
a potent stench of subordination, disempowerment and
inequality that
so seeps through the fabric of our society that it stains its core”
.
In
Campbell
Scientific Africa (Pty) Ltd v Simmers and others
[8]
this
Court (per Savage AJA) referred to the role of power dynamics in
enabling workplace sexual harassment:
‘
At
its core, sexual harassment is concerned with the exercise of power
and in the main reflects the power relations that exist both
in
society generally and specifically within a particular workplace.
While economic power may underlie many instances of harassment,
a
sexually hostile working environment is often “… less
about the abuse of real economic power and more about the
perceived
societal power of men over women. This type of power abuse often is
exerted by a (typically male) co-worker and not necessarily
a
supervisor”.
And
:
‘
By
its nature such harassment creates an offensive and very often
intimidating work environment that undermines the dignity, privacy
and integrity of the victim and creates a barrier to substantive
equality in the workplace. It is for this reason that this Court
has
characterised it as “the most heinous misconduct that plagues
the workplace”.’
[9]
[26]
In the present instance, the arbitrator
correctly distilled the dispute to one of fact. In the face of the
denial by the appellant
that he had sexually harassed either S[...]
or Mukhari, the single issue to be decided by the arbitrator was thus
whether the appellant
had committed the misconduct for which he had
been dismissed. In these proceedings, the appellant disputes that the
Labour Court
was correct to uphold the arbitrator’s finding
that, on a balance of probabilities, the appellant had harassed both
S[...]
and Mukhari, and that his innuendoes and conduct had been of a
sexual nature, thus warranting the appellant’s dismissal.
[27]
As
the Labour Court correctly observed, the LRA draws a firm distinction
between a right of review and a right of appeal. The statutory
right
of recourse against an arbitration award is confined to the narrower
remedy of review on the grounds established by section
145 of the
LRA, suffused as that section is by a reasonableness standard.
[10]
This
requires that the review court in
Duncanmec
(Pty) Ltd v Gaylard NO & others
,
[11]
the
Constitutional Court stated:
‘
This
test means that the reviewing court should not evaluate the reasons
provided by the arbitrator with a view to determine whether
it agrees
with them. That is not the role played by court and review
proceedings. Whether the court disagrees with the reasons
is not
material.
The correct test is
whether the award itself meets the requirement of reasonableness. An
award would meet this requirement if there
are reasons supporting it.
The reasonableness requirement protects parties from arbitrator
decisions which are not justified by
rational reasons.’
[28]
In
the application of the reasonableness threshold, as the Labour Court
correctly pointed out, it is not the function of a review
court to
adopt a piecemeal approach in relation to the award under review; the
court must necessarily consider the totality of
the available
evidence.
[12]
Put another way,
it is not open to an applicant in a review application, nor is it the
function of the review court, to microscopically
analyse the evidence
presented at the arbitration hearing in an attempt to demonstrate
that the award under review is incorrect
and that it should therefore
be set aside. This approach invites an evaluation of the correctness
of the award and thus invite
an appeal in the guise of a review.
[13]
What the reasonableness threshold entails was recently explained by
this Court (per Sutherland JA) in
Makuleni
v Standard Bank of SA Ltd & others
[14]
(Makuleni)
where
the Court warned against a review court yielding “
to
the seductive power of a lucid argument that the result could be
different”
.
The Court went on to state:
‘
At
the heart of the exercise is a fair reading of the award, in the
context of the body of evidence adduced and an even-handed assessment
of whether such conclusions are tenable. Only if the conclusion is
untenable is a review and setting aside warranted’.
[15]
[29]
This
approach finds particular application where the review court is
required to evaluate factual findings made by the arbitrator.
Where,
as in the present instance, the arbitrator is confronted with two
competing versions or factual constructions of the evidence,
whether
an award is susceptible to review is dependent primarily on the
plausibility and reasonableness of those constructions.
Where both
constructions are plausible and reasonable, this Court has held that
the arbitrator’s choice of one of them cannot
give rise to a
review - the award will be reasonable provided it is based on
“
acceptable
evidence upon which the arbitrator could safely rely”
.
In circumstances such as the present where one of the versions before
the arbitrator is obviously implausible (or, to use this
Court’s
words in
Makuleni
,
it is simply untenable) and the other version not, the arbitrator is
obliged to reject the untenable version. A failure to do
so would
ordinarily render the award reviewable, since the acceptance of an
untenable version of the facts would inevitably result
in a
conclusion or result that is unreasonable when the totality of the
evidence is considered.
[16]
[30]
It
follows from this analysis that intervention by a review court to
disturb factual findings made by an arbitrator ought to be
exceptional, and that the court should be “
extremely
hesitant”
to do so.
[17]
A review court
must therefore accord the arbitrator a margin of error in any enquiry
into the factual matrix – errors of
fact and any assessment of
the weight and relevance to be attached to particular facts are not
in and of themselves sufficient
for an award to be set aside.
[18]
While the reasonableness of the outcome of the proceedings remains
the threshold, as I have indicated above, a factual finding
made by
an arbitrator that is simply untenable having regard to the evidence,
will inevitably fail to meet that threshold.
[31]
On appeal, the appellant persists with his
attack on the arbitrator’s assessment of the evidence before
him, and submits that
the Labour Court was incorrect to conclude both
that the arbitrator had committed no material irregularity in her
assessment of
the evidence and that the outcome of the proceedings
under review fell within a band of decisions to which a reasonable
decision-maker
could come on the evidence. In doing so, the appellant
misconceives the nature and limitations of the remedy of review and
seeks
to adopt the piece-meal approach specifically rejected by this
Court in
Gold Fields
.
[32]
Turning
to the appellant’s first ground for appeal, he submits that the
Labour Court ought to have concluded that SARB failed
to discharge
its burden to establish, on a balance of probabilities, that the
appellant committed the offences for which he was
dismissed. In
particular, the appellant submits that the arbitrator drew inferences
from the evidence that had the effect of shifting
the burden of proof
to the appellant. In support of this submission, the appellant
submits that the arbitrator drew an inference
from the body of
evidence that is inconsistent with all the proved facts. In this
regard, counsel relied on
South
African Post Office v De Lacy and Another
[19]
in which the Court held that when a court draws an inference, what is
required is an evaluation of all the evidence and not merely
selected
parts, and that the inference drawn be consistent with all the proved
facts.
[33]
The
appellant’s submissions are predicted on the contention that
S[...]’s evidence was ‘marred with contradictions’
to the extent that there was no direct evidence that the appellant
was guilty of the misconduct for which he was dismissed. As
I
understand the submission, the appellant contends that in these
circumstances, by finding that there was direct evidence against
the
appellant, the arbitrator placed the onus of proving the fairness of
his dismissal on the appellant. There is no merit in this
submission.
To the extent that the appellant contends that there was no direct
evidence to support the evidence of both S[...]
and Mukhari and his
submission that their testimony ought to be rejected on that basis,
the submission is misconceived. Inferential
reasoning is ordinarily
relied on in the absence of direct evidence, where inferences are
sought to be drawn from such objective
facts as are available.
[20]
[34]
S[...] testified that she regarded the
appellant’s conduct and comments as degrading, and that she
felt disempowered as a
result. Discussions with the appellant were
sexualised “…
the minute
you start engaging with him it’s like he’s, he’s
seeing a sexual object
”. S[...]
gave direct evidence regarding the four separate incidents of sexual
harassment that formed the subject of the charges
against the
appellant, in relation to her. She testified that in January 2019,
after her return to work following the December
holidays, the
appellant asked her for a hug. She stated that as she hugged the
appellant, he touched her buttocks with his hand.
In his evidence,
the appellant did not deny that he hugged S[...], but he denied that
he touched her buttocks. Under cross-examination,
the appellant
conceded that he might have touched S[...]’s buttocks while he
hugged her but denied that he had any intention
to sexually harass
her. When pressed during cross-examination on the discrepancy between
the version previously proffered (i.e.
that he did not touch S[...]’s
buttocks) and the version that he may have done so but without any
intention to harass, the
appellant could not offer an acceptable
explanation. S[...] also gave evidence concerning an incident that
occurred on 7 October
2019 where after a consultation with her
gynaecologist, she met the appellant who inquired as to the
whereabouts. The appellant
remarked that S[...] was ‘naked in
the doctor’s office’ whereupon S[...] told the appellant
to stop and walked
away. The appellant did not deny that he had met
with S[...] on 7 October 2019, or that they discussed her appointment
at the gynaecologist.
S[...] gave further evidence regarding an
incident where the appellant made inappropriate comments regarding
her body. In particular,
she testified that when she was in the
appellant’s presence, he had said to her that she had a good
body unlike Thabiso and
Poppy, two employees in the department. The
appellant had stated that they were so big that when they undress,
“
your manhood just goes down; it
refuses to stand
”. The appellant
denied that this incident ever occurred and contended that it was a
fabrication by S[...]. Finally, S[...]
referred to an incident that
occurred when the appellant was going to the bathroom and suggested
to her that she should go with
him into the bathroom. Again, the
appellant’s version was one of a bare denial that the incident
took place.
[35]
The second complainant, Mukhari, testified
that in April 2017, she went to the appellant’s office for him
to complete the
gift register. When she entered the office, the
appellant called her around his desk and stated that she had a
beautiful body and
that she was ‘portable’. Mukhari
testified that she felt particularly uncomfortable in the interaction
with the appellant
as he did not look at her in the eyes but looked
at her midsection and down at her legs. In a second instance that
formed the subject
of Mukhari’s evidence, she testified that
when she visited his office, the appellant again asked her to come
around his desk
and after inquiries about the number of children she
had, stated that he would make a good father to her children. In June
or July
2017, Mukhari stated that when she had occasion to attend at
the appellant’s office, he again asked her to come around his
desk and continued to look at her and speak about her legs, telling
her that she had nice legs. On occasion, the appellant inquired
whether Mukhari ever wore swimwear to which she replied that she did,
but only when alone. Following this, the appellant remarked
that he
had seen a profile picture when she was wearing sportswear. The
appellant inquired whether he could sponsor a holiday for
Mukhari in
return for her sending him pictures of her. Mukhari testified that
the situation made her feel very uncomfortable. Mukhari
also gave
evidence concerning an incident that occurred in November 2018 when
after using the bathroom, she sat outside in pain
on account of an
injury. The appellant approached her and after inquiring why she was
seated there, he stated that he could kill
her, that she was
‘portable’ and that he could carry her into the bathroom.
Finally, Mukhari testified that during
July or August 2018, when she
was assisting with the processing of payments for international
workshop that the appellant was to
attend, she went to his office to
discuss an instruction not to pay for the workshop until the
appellant’s visa had been
approved. As she was leaving the
appellant’s office, the appellant told her that he had asked
for many things and that he
had just been ignored. The appellant
explained that he had requested pictures, and she had never provided
any. The appellant did
not offer any explanation regarding any of
these events – his defence was that the incidents complained of
had never occurred
and that he was the victim of an elaborate
conspiracy led by S[...], and extending to Mukhari, to accuse him
falsely of sexual
harassment, a conspiracy motivated ultimately by
performance management processes that he had initiated against
S[...]. Other than
her conspiring with S[...], there was no version
put to Mukhari during the arbitration that she had any motive to
falsely accuse
the appellant of sexual harassment. The appellant
confirmed as much under cross-examination, when he acknowledged that
he had proffered
a different version in his disciplinary hearing,
when he put to Mukhari that the reason that she lodged a complaint of
sexual harassment
against him was her desire to have a relationship
with them, which he had rejected.
[36]
In regard to the appellant’s
submission that the Labour Court ignored that the arbitrator had no
regard to the motive S[...]
had in filing a complaint against him
(the appellant had contended that S[...] falsely accused him of
sexual harassment to secure
his dismissal and thus prevent him from
disciplining her for poor work performance), there was no evidence
that S[...] was facing
any imminent poor performance proceedings or
even counselling for failing to meet work performance standards. It
was also not disputed
that S[...] had never been placed on a
performance program. This much was confirmed by the evidence of
Phehlukwayo.
[37]
There is also no merit in the submission
that the arbitrator ought to have drawn an adverse inference from
SARB’s failure
to call certain witnesses, in particular,
Mthubathuba, Poppy and Thabiso. The arbitrator found that their
evidence “
would not tilt the scale
in favour of the Applicant”
since
none of them had been present during any of the incidents referred
to.
[38]
In regard to the appellant’s
contention that the charges represented a conspiracy against him, the
arbitrator concluded that
there was no evidence as to why a group of
junior employees would “
gang up
against a senior manager to support someone whom it is alleged is
evading consequences of poor performance when they themselves
had
nothing to gain from I”
’.
[39]
Contrary
to the appellant’s submission, the arbitrator’s award
does not disclose an outcome based on inferential reasoning.
The
appellant’s submission that the award fails to meet the
criteria established by
South
African Post Office v Delacy and Another
is simply misplaced.
[21]
The
arbitrator had regard to the direct evidence of SARB’s
witnesses on the one hand and the appellant on the other, gave
consideration to their respective credibility and found, on a balance
of probabilities that the appellant had committed the misconduct
for
which he had been dismissed. Support for the finding that the
probabilities favoured SARB’s version was found in the
lack of
any motive on the part of either S[...] or Mukhari to proffer false
charges of sexual harassment against the appellant,
and also in the
commonality of their experiences in their separate engagements with
the appellant, both in relation to the appellant’s
conduct and
their responses to it. There is no material irregularity in the
manner or form in which the arbitrator assessed the
evidence, or her
determination of where the balance of probabilities lay.
[40]
To the extent that the appellant takes
issue with the delay in lodging the complaints of sexual harassment,
the evidence discloses
that she decided to file a grievance after
realising that the appellant would persist in sexually harassing and
bullying her. Mukhari
stated that this was not the first time that
she had experienced sexual harassment in the workplace, and that
consequent on previous
experience with a different employer, she felt
ashamed and that she was being victimised for reporting what was
happening. Further,
Mukhari stated that she was scared and afraid
that she would be accused of lying as the appellant was a senior
manager and she
was a new employee at SARB. She decided to speak out
at the grievance hearing convened after S[...]’s complaint.
[41]
The
appellant’s submission that the arbitrator ought to have
regarded the delay as a factor militating against the probability
of
the complainant’s version ignores not only the appellant’s
concession under cross-examination that it was difficult
for women to
come forward and report sexual harassment, but also the nature and
effect of power dynamics in the workplace. In the
comprehensive
judgment by Tlhotlhalemaje J in
Rustenburg
Platinum Mines Limited v UASA obo Pietersen and Others
[22]
,
the Labour Court said the following about delays in reporting
incidents of sexual harassment:
‘
[50]
Common sense however, and a bit of appreciation of the human mind
dictates that one must look deeper
and objectively into the reasons
incidents of sexual harassment are not immediately reported…
[51] In most cases,
however, it might take ages for the complainant to finally muster the
strength and courage to report the
incidents. This could be for a
variety of reasons including but not limited to:
(a)
Being ‘frozen’, and disbelieving what they are
experiencing, and not having
the human tools to respond immediately.
The state of paralysis may be accompanied by guilt, confusion,
self-anger, self-blame,
shame, victimhood, unusual calm, being
distraught and incapable of expression, withdrawal, helplessness, or
outright terror. (The
‘paralysis mode’ syndrome).
(b)
Many fear a backlash if they complain, especially where the incident
took place in
a power/subordinate relationship…
(c)
There is a fear of causing a fossil disharmony in the workplace, with
allegations
that may not be taken seriously or believed, especially
in the absence of corroborating evidence. (Most incidents of sexual
harassment
take place where there are no witnesses.)
(d)
Fear of consequential and negative labelling once an incident is
reported…
(e)
Feeling pity for the harasser for whatever reason, irrespective of
the reprehensible
conduct.
(f)
Enduring the ordeal with the hope that it will go away, or that it
was a once
off incidents never to be repeated (the ‘quit or
endure’ syndrome), coupled with the carrying of a sense of
guilt for
not reporting the matter.
(g)
The fear of publicity, and/or having to substantiate the allegations
in public proceedings
under relentless and unsympathetic
cross-examination.
[52] the above list
of responses is not exhaustive, and will in most instances obviously
require of the complainant/experience
to attest to them. What is of
significance though is that the inability to recall events with
specifics, including the timelines
within which events or incidents
took place, is not an unusual phenomenon in such cases. Courts and
Commissioners ought therefore
to bear in mind that the fact that the
complainant cannot recall specifics does not imply that the incidents
did not take place.’
[42]
Mukhari gave evidence as to her reluctance
initially to lodge a complaint regarding the appellant’s
conduct. She also testified
as to the circumstances that gave rise to
her decision to pursue a complaint against the appellant. She stated
the following:
‘
RESPONDENT’S
REPRESENTATIVE
: So what is it that made you then decide well, I’m
going to have to speak up?
MS SIMPHIWE ESTHER
MOKHARI
: Because I realised that if it happened to Linda, it
might happen to someone else. That’s the first thing. Number 2,
it was
that uhm I realised that by not saying something, he is going
to continue because I felt the last incident that happened, for me
it
felt like he was now bullying me. You know, he’s going to force
me into what he wants. For as long as I say nothing, it’s
going
to continue and I might… it’s either I’m going to
have to give in or I’m going to have to leave
the job and I
could not afford to do either of those. Yes.
RESPONDENT
REPRESENTATIVE
: Okay.
MS SIMPHIWE ESTHER
MOKHARI
: I am so sad that I actually felt guilty for something
that he does.’
[43]
There is no basis to call the arbitrator’s
decision into question on the basis of any delay in reporting the
incidents of
sexual harassment or the filing of the complaint against
the appellant.
[44]
What the evidence discloses, viewed as a
whole, is direct evidence given by both S[...] and Mukhari as to the
acts of harassment
that formed the subject of the charges against the
appellant, the appellant’s bare denial that he committed any of
the conduct
alleged and significantly, as the arbitrator pointed out,
an alleged motive on which the appellant relied (in the form of steps
taken to manage S[...]’s work performance) that did not
withstand cross-examination, a conspiracy theory that made no sense
given the nature of the relationship between S[...] and Mukhari, and
certainly no evidence of collusion between them to falsely
implicate
the appellant. What the evidence does disclose is a clear pattern of
the appellant objectifying women through explicit
sexual language and
conduct. That pattern is both recurrent and similar. Both S[...] and
Mukhari testified as to intrusive personal
enquiries; in S[...]’s
case, for example, about her visit to the gynaecologist, in Mukhari’s
case her wearing swimwear
and requests for pictures. Both women
testified that the appellant had inappropriately used physical
proximity and situation control
(especially in the form of repeated
requests that they move to his side of the desk) and to place them in
positions where they
felt uncomfortable.
[45]
In summary: the arbitrator took into
account all relevant issues, including the issue of adverse inference
and committed no reviewable
irregularity in her assessment of the
evidence. In sum, there is nothing in the record to suggest that the
factual findings to
which the arbitrator came were untenable given
the evidence that served before her. The arbitrator’s decision
to uphold the
appellant’s dismissal is clearly one that falls
within the bounds of reasonableness, and the Labour Court was correct
not
to disturb the arbitrator’s value judgment. The Labour
Court was thus correct to find that the appellant had failed to make
out a case for review, and the order dismissing the application
stands to be upheld.
Costs
[46]
Section
179 of the LRA provides that this Court may make an order for costs,
according to the requirements of the law and fairness.
This
formulation, which reflects that which applies to the Labour
Court,
[23]
means
that the ordinary rule that applies in civil proceedings, that costs
follow the result, does not apply. In
Booi
v Amathole District Municipality and others
,
[24]
the
Constitutional Court said the following:
‘
However,
this is a labour matter and this Court’s jurisprudence is
settled: the ordinary rule that costs follow the result
does not
apply in labour matters. Rather, what emerges from the provisions of
the LRA and the jurisprudence is that courts, when
awarding costs and
labor disputes, must consider what fairness to amounts and on the
side of not discouraging parties from approaching
the courts for the
peaceful resolution of labour disputes. Further, if costs are to be
awarded labor matters, there must be reasons
to justify the court’s
decision to depart from the position that the losing party should not
be marketed in costs in labor
disputes.’
[47]
This affirmation of the general rule that
costs do not ordinarily follow the result does not preclude the
Labour Court, nor this
Court, from making an order for costs where an
order of that nature is appropriate or put another way, where
fairness demands that
the losing party should be saddled with the
burden to pay the successful party’s costs, either in whole or
in part. The demands
of access to justice, as the Constitutional
Court has noted, require that aggrieved employees are not shut out of
the statutory
dispute resolution system by the prospect of an adverse
order for costs. However, to permit aggrieved litigants to move
mechanically
from one level of the dispute level to the next without
pause, undeterred by the potential of an adverse order for costs, can
frustrate
the right of access to justice by other, more deserving
cases. Cases that lack any ostensible merit demand administrative
resources,
time and attention, with the result that long backlogs
continue to plague the Labour Court’s rolls. In these
circumstances,
the right of access to justice by those parties who
have genuine cases is compromised, if only because they are forced to
wait
years for a hearing date on rolls that are littered with cases
that border on the hopeless. An order for costs is one mechanism
to
discourage cases that fall into this category, and they ought to be
so discouraged.
[48]
The present case is a good example. The
complaints against the appellant were lodged more than five years
ago. He had the benefit
of a comprehensive investigation conducted by
a senior counsel before charges were even contemplated by SARB. On
counsel’s
recommendation, charges of sexual harassment were the
subject of a hearing before a senior junior counsel. That hearing
endured,
we are told, for ‘several days’ before the
appellant was dismissed. The appellant’s dismissal then became
the
subject of a lengthy arbitration hearing extending over eleven
days, where the same witnesses who had testified during the
investigation
and the disciplinary hearing gave evidence as the same
factual circumstances. At an early stage, all that was at issue was a
narrow
factual dispute. After a comprehensive arbitration award was
issued, the appellant filed an application for review. Given the
narrow
grounds for review that are permitted by the LRA, especially
in relation to factual findings made by arbitrators, the hopelessness
of the appellant’s case ought to have been obvious.
[49]
In
the result, over a period of some five and a half years, an
individual dismissal dispute that turns on a simple factual finding
has demanded the attention of two counsel, a CCMA commissioner, a
Labour Court judge and three appeal court judges, all of whom
concur,
without hesitation, that the appellant committed an act of the most
serious misconduct that manifestly justified his summary
dismissal.
In these circumstances, I would ordinarily have dismissed the appeal
and ordered the appellant to pay SARB’s costs
on a punitive
scale. With some reluctance, I take cognisance of the fact that the
Labour Court granted the appellant’s application
for leave to
appeal. The appellant’s (misplaced) optimism in the merits of
his case was no doubt fortified when the Labour
Court considered that
his appeal would have a reasonable prospect of success. In a case
that has been the subject of a rigorous
disciplinary hearing, a
protracted and thorough arbitration hearing and a comprehensive
review, recourse to an appeal to this Court
ought to be the
exception, particularly where the appeal primarily concerns factual
findings made by an arbitrator. The Labour
Court would do well to
heed the words of Davis AJA in
Martin
& East (Pty) Ltd v National Union of Mineworkers & others
[25]
when the Labour Court was urged to exercise caution when considering
applications for leave to appeal so as to ensure a balance
between
the demands of the statutory purpose of expeditious dispute
resolution and the rights of the party seeking leave to appeal.
It is
only for the reason that the appellant was successful in his
application for leave to appeal that he escapes an adverse and
punitive order for costs.
Order
1.
The appeal is dismissed.
André van Niekerk
Judge
of the Labour Appeal Court
Djaje AJA and Chetty AJA
concur.
APPEARANCES:
FOR THE
APPELLANTS:
Adv RC Mathevula
Instructed by Mohale Inc
FOR THE
RESPONDENTS: Adv F Boda SC
Instructed by Pinsent
Masons
(Heads of argument
drafted by Adv R Itzkin)
[1]
In
the Labour Court judgment, reference is made to ‘Simpiwe
Mokhare’. In the arbitration hearing, the witness spells
her
name as ‘Simphiwe Mukhari’.
[2]
The
numbering of the paragraphs in the arbitration award is inaccurate.
The reference is to paragraph 56 and following as reflected
on page
20 of the award and onwards.
[3]
[2007] ZALC 66
;
[2014]
1 BLLR 20
(LAC); (2014) 35 ILJ 943 (LAC).
[4]
Constitution
of the Republic of South Africa, 1996 (Act 108 of 1996).
[5]
Act
55 of 1998.
[6]
GG
No 1890, 18 March 2022. The Code is published in terms of
s 54
(1)(b) of the
Employment Equity Act, 1998
, and replaces the Code
issued on 4 August 2005.
[7]
(2021)
42 ILJ 1643 (CC); [2021] 9 BLLR 861 (CC).
[8]
[2016]
1 BLLR 1 (LAC);
[2015] ZALAC 51.
[9]
Ibid
at paras 20-21.
[10]
Sidumo
& another v Rustenburg Platinum Mines Ltd & others
[2007]
12 BLLR 1097
(CC); (2007) 28
ILJ
2405 (CC) at para 106.
[11]
(2018)
39
ILJ
2633 (CC);
[2018] 12 BLLR 1137
(CC) at paras 42-43. See also
Quest
Flexible Staffing Solutions (A Division of Adcorp Fulfillment
Services (Pty) Ltd v Lebogate)
(2015)
36 ILJ 968 (LAC), where this Court said the following:
‘
[12]
… Our courts have repeatedly stated that in order to maintain
the distinction between
review and appeal, an award of an arbitrator
will only be set aside if both the reasons and the result are
unreasonable. In determining
whether the result of an arbitrator's
award is unreasonable, the Labour Court must broadly evaluate the
merits of the dispute
and consider whether, if the arbitrator's
reasoning is found to be unreasonable, the result is nevertheless
capable of justification
for reasons other than those given by the
arbitrator. The result will, however, be unreasonable if it is
entirely disconnected
with the evidence, unsupported by any evidence
and involves speculation by the arbitrator.
[13]
An award will no doubt be considered to be reasonable when there is
a material connection between
the evidence and the result or, put
differently, when the result is reasonably supported by some
evidence. Unreasonableness is,
thus, the threshold for interference
with an arbitrator's award on review.’
[12]
Gold
Fields Mining South Africa (Pty) Ltd (Kloof Gold Mine) v Commission
for Conciliation, Mediation and Arbitration and others
(Gold Fields)
[2007] ZALC 66
;
[2014]
1 BLLR 20
(LAC); (2014) 35
ILJ
943 (LAC).
[13]
See
Cox
v CCMA & others
[2001] 2 BLLR 141
(LC); (2001) 22
ILJ
137 (LC).
[14]
(2023)
44
ILJ
1005 (LAC); [2023] 4 BLLR 283 (LAC).
[15]
Ibid
at para 4.
[16]
See
Head
of the Department of Education v Mofokeng and others
[2015] 1 BLLR 50
(LAC); (2015) 36
ILJ
2802 (LAC) where this Court adopted a two stage test; the first is
to determine any distorting effect that an error of fact may
have
had on the ultimate outcome, with a material error (one found to
have caused the applicant to lose the arbitration) constituting
on a
prima
facie
basis, an unreasonable result. The second stage is to determine
whether the
prima
facie
case is confirmed or rebutted by on a consideration that make up the
enquiry into reasonableness. (See Myburgh and Bosch
Reviews
in the Labour Courts
LexisNexis 2016 at 244-5.)
[17]
Mbeje
& others v Department of Health, KwaZulu-Natal & others
(2024) 45
ILJ
2681 (LAC)
[2008] ZALC 101
; ;
[2024] 11 BLLR 1111
(LAC) at para 21.
[18]
A
J Charnaud & Co v SA Clothing & Textile Workers Union on
behalf of Members & others
(2024) 45
ILJ
2257 (LAC);
[2024] 10 BLLR 1016
(LAC) at para 24.
[19]
(2009)
(5) SA 255 (SCA); [2009] 3 All SA 437 (SCA).
[20]
Briers
NO and Others v Salmon NO and Others
[2023] ZAWCHC 26.
[21]
Although
the arbitrator refers in para 56 of the award to an ‘inference’
that the custom of hugging existed in the
legal department,
especially after a return to work from a period of leave, this is
not strictly an inference, it was a common
cause fact.
[22]
[2018]
ZALCJHB 72; (2018) 39
ILJ
1330 (LC).
[23]
See
section 162
of the LRA.
[24]
[2022]
1 BLLR 1
(CC); (2022) 43
ILJ
91 (CC). See also
Zungu
v Premier of the Province of KwaZulu-Natal & others
(2018) 39
ILJ
523 (CC);
[2018] 4 BLLR 323
(CC);
Union
for Police Security & Corrections Organisation v SA Custodial
Management (Pty) Ltd & others
(2021)
42 ILJ 2371 (CC);
2022 (1) BCLR 118 (CC).
[25]
(2014)
35
ILJ
2399 (LAC);
[2013] ZALAC 35.
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