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What is pre-dismissal arbitration?

by , 02 October 2014
Our labour experts get a lot of questions regarding dispute resolution procedures.

One question they got this week comes from an employer who wants to know what pre-dismissal arbitration is.

Keep reading as we tell you everything you need to know about this process so you can use it to resolve disputes effectively.

Here's what you need to know about pre-dismissal arbitration

According to the Labour Law for Managers Loose Leaf Service, in 2002, certain amendments were made to the Labour Relations Act (LRA) to allow for swift, inexpensive and effective dispute resolution.
One amendment was Section 188A. It introduced the concept of pre-dismissal arbitration.
That's how pre-dismissal arbitration was born.
Essentially, pre-dismissal arbitration replaces an in-house disciplinary enquiry, internal appeal procedure, conciliation and further arbitration.
This means, when dealing with employee misconduct or incapacity, you may agree with your employee to ask the CCMA, a council or an accredited agency to appoint an arbitrator to conduct a pre-dismissal arbitration, which will replace an in-house disciplinary enquiry and arbitration.
The outcome is a final and binding arbitration award. Neither party may seek any further dispute resolution mechanisms such as conciliation or arbitration.

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Here are some of the advantages of pre-dismissal arbitration

Pre-dismissal arbitration reduces costs as one process replaces a disciplinary enquiry, internal appeal and possible further external processes, such as conciliation and arbitration, if the outcome of a disciplinary enquiry is challenged.
In addition, it reduces time as one process finalises the issue and prevents further disputes at the CCMA or your bargaining council.
Knowing what pre-dismissal arbitration is will help you resolve disputes effectively.

Since there's so much more you still need to know about pre-dismissal arbitration, we recommend you check out the Labour Law for Managers Loose Leaf Service for more information. Alternatively, send any questions you have to our experts at the Labour & HR Club.

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