Case Law[2025] ZALAC 67South Africa
John Taolo Gaetsewe District Municipalirty v SAMWU obo Mathabathe and Others (JA108/2022) [2025] ZALAC 67; (2026) 47 ILJ 157 (LAC) (21 October 2025)
Labour Appeal Court of South Africa
21 October 2025
Headnotes
the dismissal was both substantively and procedurally unfair. Although the order of the Labour Court is not elegantly worded, the learned Judge must have intended to make an order that the appellant should reinstate the employee into the position which he occupied before his dismissal. It held further that the appellant should pay the costs of the application for review. This appeal is with leave of the Labour Court.
Judgment
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## John Taolo Gaetsewe District Municipalirty v SAMWU obo Mathabathe and Others (JA108/2022) [2025] ZALAC 67; (2026) 47 ILJ 157 (LAC) (21 October 2025)
John Taolo Gaetsewe District Municipalirty v SAMWU obo Mathabathe and Others (JA108/2022) [2025] ZALAC 67; (2026) 47 ILJ 157 (LAC) (21 October 2025)
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sino date 21 October 2025
THE
LABOUR APPEAL COURT OF SOUTH AFRICA, JOHANNESBURG
Reportable
Case
no. JA 108/2022
In
the matter between
JOHN
TAOLO GAETSEWE DSISTRICT
MUNICIPALITY
Appellant
and
SAMWU
obo T
MATHABATHE
First Respondent
THE
SOUTH AFRICAN LOCAL
GOVERNMENT
BARGAINING COUNCIL
Second Respondent
COMMISSIONER
P M
VENTER
Third
Respondent
Date
heard:
16 September 2025
Date
delivered:
Coram
Nkutha-Nkontwana JA, Chetty et Tokota AJJA
This
judgment was handed down electronically by circulation to the
parties’ representatives by email, published on the Labour
Appeal Court website, and released to SAFLII. The date and time for
hand-down is deemed to be 10h00 on 21 October 2025
JUDGMENT
TOKOTA,
AJA
Introduction
[1]
Mr Mathabatha was employed by the appellant with effect from 1 July
2002. On 17 June 2015, he was dismissed on the grounds
of misconduct.
The first respondent, acting on behalf of Mr Mathabatha, who is one
of its members, referred a dispute of unfair
dismissal to the second
respondent, the South African Local Government Bargaining Council
(the Bargaining Council) for conciliation
and arbitration. When
conciliation failed and the dispute remained unresolved, the dispute
was referred to arbitration. The second
respondent (the arbitrator)
found that the dismissal was procedurally fair but substantively
unfair. He ordered that the appellant
should compensate Mr Mathabatha
(the employee) for a period equal to four months of his salary.
[2]
Dissatisfied with the result of the arbitration, the first respondent
took the matter on review before the Labour Court.
The Labour Court
(per Nkosi AJ) reviewed and set aside the award. The Labour Court
held that the dismissal was both substantively
and procedurally
unfair. Although the order of the Labour Court is not elegantly
worded, the learned Judge must have intended to
make an order that
the appellant should reinstate the employee into the position which
he occupied before his dismissal. It held
further that the appellant
should pay the costs of the application for review. This appeal is
with leave of the Labour Court.
Factual
background
[3]
The employee was employed by the appellant as a Manager: Rural
Development effective from 1 July 2002. He became a member
of the
first respondent, hence his dispute of unfair dismissal was handled
by it.
[4]
On 12 March 2015, he was served with the notice to attend a
disciplinary enquiry of misconduct on seven counts of gross
insubordination and one count of poor work performance. Although it
is not clear from the evidence of the chairperson who conducted
the
disciplinary enquiry, it appears that the employee was found guilty
on four counts of gross insubordination and on one count
relating to
poor work performance. Two charges were withdrawn. The employee was
then dismissed.
[5]
The first respondent then referred the dispute of unfair dismissal on
behalf of the employee to the Bargaining Council.
The
conciliation failed to resolve the matter as a result of which it was
referred to arbitration. The arbitrator found that the
employee
contravened the employer’s disciplinary code and was guilty on
charges 1, 2, 4 and 5 all of which related to gross
insubordination
and not guilty on charge 8 as he ruled that this was a splitting of
charges. He found that the employee advanced
no excusable grounds for
non-compliance with lawful instructions given to him.
[6]
The arbitrator found that the insubordination was not gross and
therefore did not warrant a dismissal. He took into account
the fact
that the employee had a clean record of 13 years’ service; that
the appellant was not seriously prejudiced as the
information
required eventually reached the Council,
albeit
that it was
compiled by the employee’s supervisor (Mr Teise). He concluded
that the sanction of dismissal was too harsh.
He accordingly found
that the dismissal was substantively unfair. He concluded that the
disciplinary enquiry process was procedurally
fair.
[7]
Having found that the dismissal was substantively unfair, the
arbitrator decided that he would not order reinstatement
or
re-employment as envisaged in terms of s 193(1) of the Labour
Relations Act
[1]
(the LRA). He
gave his reasons for non-reinstatement as follows: the employee was
not remorseful; the employee sent an email to
his supervisor which
was derogatory in its language in that he insulted and threatened
him. He held the view that in the circumstances
it would not be fair
or in the interests of justice to continue the employment
relationship with the appellant. He then ordered
that the appellant
should compensate the employee in the amount of R205 236, it
being equal to four months’ employees’
salary.
[8]
The first respondent instituted review proceedings seeking an order
from the Labour Court reviewing and setting aside
the arbitrator’s
award. For reasons not apparent from the judgment, the Labour Court
reviewed and set aside the award and
substituted it with the
following order.
‘
1.1
The dismissal of the applicant is both substantively and procedurally
unfair;
1.2
The first respondent John Taolo Gaetsewe District Municipality is to
reinstate the applicant
into the position he occupied prior to his
dismissal;
1.3
The applicant is entitled to full back pay from date of dismissal;
2.The first respondent is
ordered to pay the costs of this application.’
I now proceed to analyse
the Labour Court’s basis for the order it made, but first I
need to deal with the reinstatement of
the appeal.
Reinstatement
of the appeal
[9]
The judgment and order of the Labour Court was delivered on 5 October
2021. An application for leave to appeal that judgment
was granted by
Waglay JP on 21 September 2022. In terms of the Rules of this
Court, the record of appeal must be delivered
within sixty days of
the date on which leave to appeal was granted.
[2]
Therefore, the record of appeal ought to have been delivered on 14
December 2022. If the record is not delivered within the
prescribed period, the appellant is deemed to have withdrawn the
appeal.
[3]
The record was
delivered in 2024, almost two years later. Consequently, the appeal
was deemed to have been withdrawn.
[10]
Seeing that the appellant was not doing anything to prosecute the
appeal, contempt proceedings were instituted against
the appellant.
The hearing of the contempt of Court application was set down for the
2
nd
of August 2024. On the eve of the date of the hearing
of the contempt proceedings, the appellant launched an application
for reinstatement
of the appeal.
[11]
In light of the above, the appellant was obliged to apply for the
reinstatement of the appeal. The explanation for the
delay, as
contained in the application for condonation, is poor. The only
reason why it took so long to deliver the record was
because it was
incomplete. Although the record is still incomplete, no explanation
was proffered as to what happened to the missing
parts that could not
be traced and why it took so long to collate the record.
[12]
In considering whether or not the delay ought to be overlooked,
factors such as the right of the parties to have their
dispute
resolved by an independent and impartial court or Tribunal in terms
of s 34 of the Constitution of the Republic of South
Africa, Act 108
of 1996 the importance of the matter, the prospects of success of the
appeal, the potential prejudice to the parties,
including the
consequences of not granting or of granting the relief sought and of
not finalising the appeal on its merits, should
be taken into
consideration to decide whether or not to entertain the appeal,
despite the delay.
[4]
[13]
In terms of s 167(3) of the LRA, ‘[t]he Labour Appeal Court is
a superior court that has authority, inherent powers
and standing, in
relation to matters under its equal to that which the Supreme Court
of Appeal has in relation to matters under
its jurisdiction.’
Where an injustice will occur if the matter is not entertained this
Court has a duty to overlook the delay
notwithstanding the lack of
reasonable and satisfactory explanation, especially in the face of an
incompetent order of the Court
a quo. In this matter, it is in the
interests of justice that the appeal be reinstated. The order of the
Labour Court is incompetent
as will be demonstrated hereunder. There
are good prospects of success and the appellant will be prejudiced if
the order is allowed
to stand. In any event, none of the parties
would be able to enforce the order as it stands. Accordingly, the
appeal is hereby
reinstated.
The
treatment of the review in the Labour Court
[14]
As pointed out in paragraph 13 above, the order of the Court a quo
itself is vague and embarrassing. Paragraph 1.1 of
the order states
that the “applicant’s” dismissal was “both
substantively and procedurally unfair”.
The applicant is, in
fact, a trade union and was never dismissed. It was the employee who
was dismissed. A trade union is not an
agent of its members; it
merely acts either in its own interests or in the interests of its
members. Paragraph 1.2 of the order
states that “the applicant”
is to be reinstated into the position he occupied prior to the
dismissal. Here too, the
union cannot be reinstated in the workplace
of the appellant. It instituted the review application in the
interests of its member
and not with a view to be reinstated in any
position. Paragraph 1.3 thereof says “the applicant is entitled
to full back
pay from the date of his dismissal”. This too
cannot be enforced. As it stands, the employee does not stand to
benefit from
the order of the Labour Court.
[15]
I am not sure whether the Learned Acting Judge, who heard the matter,
was under pressure or not. There are no reasons
for the order
whatsoever. In a long line of authorities, it has been emphasized
that reasons must be given for any decision made
by the court or an
administrative functionary.
[16]
The duty to give reasons entails a duty to rationalise the decision.
Reasons help to structure the exercise of discretion.
The
necessity to explain why a certain decision was reached requires one
to address one’s mind to the decisional referents
which ought
to be taken into account. Furnishing of reasons satisfies an
important desire on the part of the affected individual
to know why a
decision was reached in order to justify a fair process. Rational
criticism of the decision can only be made when
the reasons for it
are known. Finally, reasons may serve a genuine educative purpose
which may enable the individual to correct
his conduct for the future
applications
[5]
.
[17]
In
Minister
of Environmental Affairs and Tourism and Others v Phambili Fisheries
(Pty)
Ltd
[6]
it was stated
that
the purpose of reasons is to “…enable a person aggrieved
to say in effect even though I may not agree with it,
I now
understand why the decision went against me. I am now in a
position to decide whether that decision has involved an
unwarranted
finding of fact, or an error of law, which is worth challenging.”
[18] The order made
by the Labour Court is not informed by any analysis of either facts
or law. No basis has been laid as
to why it was concluded that the
dismissal was procedurally unfair. With regard to the conclusion that
the dismissal was substantively
unfair the learned Acting Judge said:
‘In this matter the second respondent found that the
Applicants
were substantively and unfairly treated but failed to re-instate
them.
This was a deviation from the logical conclusion which
on its own turned out to be an unfair dismissal.’ It is not
clear
which applicants were ‘
substantively and unfairly
treated’
whom the arbitrator ‘failed to reinstate’.
[emphasis added]
[19]
It has been said of the well-established test on the interpretation
of court orders
:
‘
The starting point
is to determine the manifest purpose of the order. In
interpreting a judgment or order, the court’s
intention is to
be ascertained primarily from the language of the judgment or order
in accordance with the usual well-known rules
relating to the
interpretation of documents. As in the case of a document, the
judgment or order and the court’s reasons
for giving it must be
read as a whole in order to ascertain its intention.”
[7]
In
light of the lack of reasons for the order the intention of the Court
a quo cannot be established. Accordingly, this is another
aspect
which count against the order being allowed to stand regardless of
the merits of the case.
[19]
In view of the above this Court must exercise its inherent power to
entertain the review application in the interests
of justice because
to do so will bring about finality of the dispute. This is what the
Constitutional Court had said about the
inherent power
[8]
:
‘
[T]he power
conferred on the High Courts, Supreme Court of Appeal and this Court
in section 173 is not an unbounded additional instrument
to limit or
deny vested or entrenched rights. The power in section 173 vests in
the judiciary the authority to uphold, to protect
and to fulfil the
judicial function of administering justice in a regular, orderly and
effective manner. Said otherwise, it is
the authority to prevent any
possible abuse of process and to allow a Court to act effectively
within its jurisdiction.”
Analysis
[20]
The employee in this matter was found guilty of a misconduct of
insubordination. The arbitrator found that the insubordination
was
not gross and therefore the dismissal was not warranted. He took into
account the fact that the employee had served 13 years
with a clean
record. He was not convinced that the employer was seriously
prejudiced. He was of the view that the dismissal was
not
appropriate. However, he decided not to order reinstatement or
re-employment.
[21]
The decision not to reinstate was based solely on the conduct of the
employee during the process. The arbitrator refers
to an email which
the employee addressed to his supervisor. In that email, he uttered
derogatory words which indicated insolence
on his part. I may add
that even at the disciplinary hearing the employee and his
representative walked out when things did not
go their way even
before the commencement of the hearing. They did not bother to
explain why they were not in a position to participate
in the
process. In my opinion, this was a sign of repudiation of his right
to place his side of his story before the chairperson
of the
disciplinary enquiry.
[22]
The arbitrator held that, in light of his disrespectful conduct
towards his senior, it would not be in the interests
of justice and
fairness to expect the respondent to continue the relationship. He
was of the opinion that, even though he was not
charged for
threatening behaviour or intimidation, his conduct during this period
had to be considered. Consequently, he reasoned
that reinstatement or
re-employment would not be practical. It was clear to him that the
employee had no respect for his authority.
[23]
Section 193 of the LRA governs the situation in the event the
employer’s dismissal is found to be substantively
unfair. The
starting point is that the court or the arbitrator must make an order
for reinstatement or re-employment unless factors
contained in s
193(2) (a)-(d) are present. These factors include, a case where the
employee does not wish to be reinstated or re-employed;
where the
circumstances surrounding the dismissal are such that the employment
relationship would be intolerable; where reinstatement
or
re-employment would not be reasonably practical.
[9]
[24]
The arbitrator correctly found that the language used by the employee
in the email addressed to his supervisor displayed
disrespectfulness.
In
CCAWUSA
and Another v Wooltru Ltd t/a Woolworths (Randburg),
[10]
the Court equated insolence with impudence, cheekiness, disrespect or
rudeness and distinguished
'mere'
insolence from insubordination but then opined that the distinction
is overly technical as both forms of misconduct give expression
to a
repudiation of authority, which rests as much on respect as it does
on obedience.’ I agree with the arbitrator that
the conduct of
the employee was uncalled for. It clearly displayed his insolence and
insubordination to his authority. There was
evidence during the
arbitration that Mr Teise, his supervisor, was once his subordinate
when he, the employee, acted for some time
in the same position.
[25]
In reaffirming the test enunciated in
Sidumo
and Another v Rustenburg Platinum Mines Ltd and Others
,
[11]
this Court in
Fidelity
Cash Management Services v CCMA and Others
[12]
expressed the following view:
‘
It will often
happen that, in assessing the reasonable or otherwise of an
arbitration award or other decision of a CCMA commissioner,
the court
feels that it would have arrived at a different decision of finding
to that reached by the commissioner. When that happens,
the court
will need to remind itself that the task of determining the fairness
or otherwise of such a dismissal is in terms of
the Act primarily
given to the commissioner and that the system would never work if the
court would interfere with every decision
or arbitration award of the
CCMA simply because it, that is the court, would have dealt with the
matter differently. Obviously,
this does not, in any way, mean that
decisions or arbitration awards of the CCMA are shielded from the
legitimate scrutiny of the
Labour Court on review.’
I
add here to say this is the main distinction between appeals and
reviews. In the absence of any gross irregularity, the court
will not
interfere.
[26]
Furthermore, in
Mashaba
v University of Johannesburg and Others
[13]
this Court said:
‘
The role of a
review court is not to pronounce on the correctness or otherwise of
the decision arrived at by the commissioner. The
test, for purposes
of review proceedings, as opposed to that of an appeal, is that,
objectively speaking, there must be a rational
connection between the
outcome or the decision and the facts on which such decision is
based.’
[27]
In terms of s 193(1) of the LRA:
‘
If the Labour
Court or an arbitrator appointed in terms of this Act finds that a
dismissal is unfair, the Court or the arbitrator
may-
(a)
order the employer to reinstate the employee from any date not
earlier than the date of
dismissal;
(b)
order the employer to re-employ the employee, either in the work in
which the employee
was employed before the dismissal or in other
reasonably suitable work on any terms and from any date not earlier
than the date
of dismissal; or
(c)
order the employer to pay compensation to the employee.’
It
is clear from the provisions of the section that the arbitrator has a
discretion either to order reinstatement, re-employment
or
compensation. In this case, the arbitrator, unlike the Labour Court,
even considered the length of service of the employee and
the
possibility of securing employment, but came to the conclusion that
the circumstances of the case were such that it was not
in the
interests of justice to make an order for reinstatement or
re-employment. He was permitted in terms of the law to order
compensation as he did. This Court is not entitled to interfere
simply because it would not have done as he did. He committed no
irregularity or unlawfulness.
[28]
It has been argued on behalf of the appellant that the primary remedy
to be considered in terms of s 193(2) of the LRA
is that the
arbitrator must order reinstatement or re-employment unless
circumstances mentioned in the section exist, in which
case
compensation may be considered. I agree. However, where the
arbitrator has considered all the evidence and has come to the
conclusion that such order would not be appropriate by virtue of
intolerability of the relationship, the court will not readily
interfere.
[14]
[29]
The high mark of intolerability is heightened only where the employee
has been exonerated of the wrong doing of all the
charges. In this
case, the employee has not been exonerated but found guilty. From his
evidence, even though there was some concession
that the reports were
not submitted, he persisted that he had done nothing wrong. In my
view, the decision of the arbitrator falls
within the bounds of
reasonableness and I am not persuaded that it should be interfered
with.
Costs
[30]
Counsel
for the appellant submitted that costs will be left in
the discretion of the Court.
Counsel
for the respondent
submitted that the appeal should be dismissed with costs. Costs in
labour related matters are considered in light
of law and fairness.
The appellant has achieved success in respect of the merits but was
completely at fault for the deeming provision
relating to the
withdrawal of the appeal. The judgment and the order of the Labour
Court required to be corrected by this Court.
I do not consider an
award of costs as appropriate in the matter.
[31]
In the result, the following order will issue:
Order:
1. The appeal
succeeds with no order as to costs.
2. The order of the
Labour Court is set aside and substituted with the following:
“
The application
for review is dismissed with no order as to costs.”
B
R Tokota
Acting
Judge of the Labour Appeal Court of South Africa
Nkutha-Nkontwana
JA
et
Chetty AJA concur.
APPEARANCES:
For
the Appellant:
H Mutenga
Instructed by Koikanyang
Attorneys
For
the Respondent:
T Qhali
Instructed by Tatie
Attorneys
[1]
Act
66 of 1995, as amended.
[2]
Rule 5 (8) of the Rules Relating to the Conduct of the Proceedings
of the Labour Appeal Court.
[3]
Rule 5 (17) of the Rules Relating to the Conduct of the Proceedings
of the Labour Appeal Court.
[4]
City of
Johannesburg Metropolitan Municipality and Others v Independent
Municipal and Allied Trade Union and Others
(2017)
38 ILJ 2695 (LAC) at para 76;
Chief
Lesapo v North West Agricultural Bank and
Another
2000
(1) SA 409
(CC).
[5]
Baxter Administrative Law p.228;
S
v Machaba
2016
(1) SACR 1
(SCA);
[2015] 2 All SA 552
(SCA);
[2015] ZASCA 60)
at
para 63;
Gavric
v
Refugee
Status Determination Officer and others
2019
(1) SA 21
(CC);
2019 (1) BCLR 1
(CC)
[2018] ZACC 38
para 69
[6]
2003
(6) SA 407
(SCA) at 428 A–C;
Nkondo
and Others v Minister of Law and Order and Another; Gumede and
Others v Minister of Law and Order and Another; Minister
of Law and
Order v Gumede
and
Others
1986
(2) SA 756
(A) at 772I - J
[7]
Finishing
Touch 163 (Pty) Ltd v BHP Billiton Energy Coal South Africa Ltd and
Others
[2012]
ZASCA 49
;
2013
(2) SA 204
(SCA) (
Finishing
Touch 163
)
at para 13. See also
Firestone
South Africa (Pty) Ltd v Genticuro AG
1977 (4) SA 298 (A).
[8]
[2006]
ZACC 15
;
2007
(1) SA 523
(CC);
2007
(2) BCLR 167
(CC) (
South
African Broadcasting Corp
)
at para 90.; S.167(3) of the LRA also confers an inherent power in
the Labour Appeal Court.
[9]
Toyota
SA Motors (Pty) Ltd v CCMA
[2015]
ZACC 40
; (2016) 37 ILJ 313 (CC);
2016 (3) BCLR 374
(CC) at para 135.
[10]
(1989) 10 ILJ 311 (IC).
[11]
[2007] 12 BLLR 1097
(CC).
[12]
[2008]
3 BLLR 197
(LAC) at para 98.
[13]
(2023) 44 ILJ 156 (LAC);
[2023] 2 BLLR 119
(LAC) at para 19.
[14]
Booi v
Amathole District Municipality and Others
[2022] 1 BLLR 1
(CC); (2022) 43 ILJ 91 (CC) ;
2022 (3) BCLR 265
(CC)
at para 43.
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