Make sure your dismissals are substantively fair
The facts are as follows:
House & Home dismissed employees because they wouldn't work adjusted hours during the festive season. Even though their employment contracts included a clause that said they must.
The employees said the dismissal was unfair because House & Home didn't consult them on the new working hours. And they had already given them a final warning.
They also said their treatment in terms of the dismissal was inconsistent.
You don't have to pay your employees overtime...
Discover the 4 alternatives you have that can save you thousands on your staff's salaries this month... If you have employees that work overtime
, it can get expensive!
For example, if five of your employees work 10 hours of overtime
after 5pm this week and their total hourly rate is R565.50, you'll be required to pay them one and a half times this rate.
And that means this month, you'll spend a total of R42 412.50 in overtime
for these employees this month alone...
But just because your employees work overtime
, doesn't mean you have to pay them for it...
What did the court decide?
The Commissioner said it was clear the employees were in breach of their contracts when they wouldn't work the new hours.
So they were in breach of a valid rule of employment, which they knew about.
There was no evidence of inconsistency.
But, when looking at the actual dismissal, the Commissioner said there was no evidence the employees damaged the working relationship beyond repair.
He said the employer should give the employees warning that their working hours were going to change.
The employees said they'd have trouble with transport, and asked House & Home to help with taxi fares.
House & Home didn't prove it had suffered loss because of the employees not working overtime.
So the dismissals were substantively unfair.
House & Home had to reinstate the employees with three months' back pay.
Employment contracts: what the law says you must do
You must give your employees, in writing, the terms and conditions of their employment. This document can take the form of a letter of appointment, or you can create a more formal contract of employment – the form doesn't matter it's the content that's important. Getting your employee to sign the document avoids disputes about whether or not it was given and what it contains. You must do this when the employee starts employment and you must retain the document for at least three years after termination of the employment relationship (Section 29 of the BCEA).
Find out more here...
So… What can you learn from this case?
Before you just dismiss
employees for insubordination and failing to follow a reasonable instruction during the festive season, cover the following ground…
Even if your employment contracts provide for overtime and a change in working hours, make sure you give employees notice of when this will happen.
An employee's refusal to work new hours or overtime must damage the employment relationship beyond repair for it to be grounds for dismissal.
If the hours are outside of 'normal' working hours, you need to make sure there is transport available to employees.
You must be able to prove you'll suffer financial loss if employees don't work the new times.
If you plan on asking employees to work overtime
or change your operating hours, just make sure you don't spring it on them. Give them fair warning and discuss it with them. See if you can help employees where necessary with transport etc.