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Is pre-dismissal arbitration conducted free of charge?

by , 06 October 2014
There's a lot of confusion regarding pre-dismissal arbitration.

The number of questions our experts get on the issue is proof of this.

One question they were recently asked comes from an employer who wants to know whether or not the CCMA conducts pre-dismissal arbitration free of charge.

Read on to find out the answer to this question so you can arrange a pre-dismissal arbitration without any glitches.

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Unfortunately, pre-dismissal arbitration isn't free of charge

According to the report, CCMA for Managers, normal arbitrations at the CCMA are done free of charge. You don't have to pay commissioners for their services.
But pre-dismissal arbitration is a different story.
In the case of pre-dismissal arbitration, there's a prescribed fee. The fee is R3 000 plus Vat for the first day and R2 250 plus Vat for each further day.
As an employer, it's your responsibility to pay the fee, your employee doesn't have to pay anything.
In this article, we explain that you must follow three steps to arrange a pre-dismissal arbitration.
  1. You must complete LRA Form 7.19;
  2. Pay the prescribed fee; and
  3. Deliver the completed Form 7.19 to the CCMA with proof of payment of the fee.
Once you do this, the CCMA will tell you the date and venue (at the CCMA or your premises) of the pre-dismissal arbitration within 21 days of receiving your form and payment.
There you have it. A pre-dismissal arbitration isn't free. Make sure you take this into account when you want to use this dispute resolution process in your workplace.

PS: For more information on pre-dismissal arbitration, check out the Labour Law for Managers Loose Leaf Service. It has everything you need to know, including what you must do before you use pre-dismissal arbitration, the benefits of pre-dismissal arbitration, when it's best to use this process and so much more.

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