An unfair dismissal is a dismissal that fails the LRA's fairness test - either the reason given was not valid (substantively unfair) or the process followed was inadequate (procedurally unfair), or both. An employee who believes they were unfairly dismissed can refer the matter to the CCMA.
What it means
Even a dismissal for a genuine, serious reason can be found unfair if the disciplinary procedure leading to it was flawed - skipped notice, no opportunity to respond, or an inconsistent sanction compared with similar past cases.
Where it fits in
A successful unfair dismissal claim can result in reinstatement or compensation, both of which have payroll consequences - reinstatement potentially means back-pay calculations, and compensation is a once-off payment with its own tax treatment.
Key rules
- Fails on substantive grounds (no valid reason), procedural grounds (flawed process), or both.
- Challenged through the CCMA, not the ordinary courts, in the first instance.
- Reinstatement can require back-pay calculations through payroll.
- Compensation awarded is a separate payment with its own tax treatment.
