The Reinstatement and Compensation Conundrum in South African Labour Law

Abstract

The SBV Services (Pty) Ltd case brought a novel concept into the labour dispute resolution arena: arbitrators must inform employees who succeed in proving that they were dismissed for an unfair reason of the implications of a reinstatement or compensation order in terms of the Labour Relations Act 66 of 1995 before making an award. This case discussion highlights how the court, under the pennant of the interests of justice, made injudicious errors in the interpretation and application of accepted legal principles, and the potential negative effects that enforcement of this principle could have. KeywordsSection 193 of the Labour Relations Act; section 194 of the Labour Relations Act; compensation; reinstatement; re-employment; unfair dismissal; waiver of reinstatement; non-patrimonial loss; backpay.