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The true cost of automatically unfair dismissal

by , 01 September 2014
Some employers think unfair dismissal is trivial issue.

Perhaps what makes them think it's not serious is because they don't fully understand the true cost of this form of dismissal. In this tough economy, it could cripple your business.

We'll break things down for you.

Read on to discover the true cost of automatically unfair dismissal so you'll never take chances.

Here's what you'll have to pay if a dismissal is automatically unfair

According to the Labour Law for Managers Loose Leaf Service, if you dismiss an employee and the reason is automatically unfair, you may be ordered to:

  • Reinstate him to his position within your company; and
  • Pay compensation equal to a maximum of 24 months remuneration calculated at your employee's rate of remuneration at the time of dismissal. This could amount to thousands of rand. Can you imagine forking out that kind of money in this tough economy?
Luckily, there's a way to avoid paying large sums of money or having to reinstate your employee.

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There are only three reasons you can fire an employee that the CCMA will consider 'fair' but there are hundreds of reasons you can fire an employee that's automatically 'unfair'!

Click here and I'll show you how you can dismiss fairly and legally!


Bear the following in mind when considering whether dismissing an employee could be an automatically unfair dismissal: 

#1: Stop and ask yourself: 'What's the real reason for the dismissal?'

#2: Is it one of the reasons set out in Section 187 of the Labour Relations Act (LRA)?

According to this section, it's an automatically unfair dismissal if you fire an employee for:
  • Belonging to a union or workplace forum;
  • An act on your behalf that's considered to be victimisation;
  • Participating in or supporting a protected strike;
  • Refusing to do the work of striking employees;
  • Refusing to sign new terms and conditions of employment that you haven't consulted him on;
  • Pregnancy, or planning to fall pregnant;
  • Any one of these reasons: Race, gender, ethnic origin, age, sexual orientation etc.;
  • Any reason relating to a transfer of your business as a going concern; and
  • Disclosing any information as listed in the Protected Disclosure Act (PDA).
#3: If so, it's likely to be an automatically unfair dismissal. This means serious consequences for you including possible reinstatement and up to 24 months compensation.

Now that you know the true cost of automatically unfair dismissal, ALWAYS ensure dismissal is fair.

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