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Labour Appeal Court Upholds Dismissal for Misconduct: Context and Facts Trump Labels

The LAC reiterated that employers must avoid overly formalistic or technical approaches to misconduct charges and that the employer's categorisation of the misconduct matters less than the substance.
17 March 2026 by
Labour Appeal Court Upholds Dismissal for Misconduct: Context and Facts Trump Labels
Michiel Heyns
In a recent judgment, the Labour Appeal Court (LAC) dismissed an appeal against a dismissal for misconduct, reinforcing flexible principles in South African labour law.

The case centred on an employee who was due to attend her employer's event in Cape Town. That morning, she requested permission from her manager to skip the event and return early to Durban, citing unwellness and emotional shock from a colleague's suspension for alleged fraud. She flew back, but upon landing in Durban during business hours, bypassed home or the office to chair a disciplinary hearing at another company's premises. There, she issued a finding describing herself as that company's 'HR Director'—despite holding no such role or employment.

Charged and found guilty of misconduct, she was dismissed. Her challenge to the dismissal, claiming it rested on an "unexpressed charge" of dishonesty, failed at arbitration and the Labour Court. The LAC confirmed the dismissal's fairness.

Core Principle Affirmed


The LAC reiterated a vital tenet: employers and employees must avoid overly formalistic or technical approaches to misconduct charges. Adequate notice and information for the employee to understand the alleged act of misconduct should suffice. The employer's categorisation of the misconduct matters less than the substance.

Key Takeaways


  • Disciplinary codes as guidelines, not rigid rules: While the employer's code listed 'private work during office hours' as warranting only a final warning, such codes are not straitjackets. Severity must be contextualised. Here, the misconduct wasn't a minor breach but a profound trust violation, worsened by the employee's senior role. Dismissal fell squarely within the band of reasonableness.
  • Substantive fairness over labels: The true issue—feigned illness to prioritise unauthorised external work—destroyed trust. The employee had full opportunity to defend it, even if not explicitly tagged as "dishonesty."

  • No gross irregularity by commissioner: The arbitrator correctly pinpointed the real dismissal grounds from the evidence and deemed them justification for termination—a reasonable outcome.

Conclusion


In summary, the arbitrator did not commit a gross irregularity. She identified the true reason for the dismissal of the employee that was evident from the evidence before her, and which the employee had a full opportunity to defend. Her finding that this misconduct destroyed the trust relationship and justified dismissal is one that a reasonable decision-maker could reach. The Labour Court was correct in refusing to interfere with the award.

This decision reminds employers and practitioners: focus on misconduct's gravity, the true facts of the matter, the evidence and not semantics.


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