Reinstatement is a remedy used in labour law for unfair dismissal and unfair labour practices.
Court decisions define reinstatement
In terms of the Labour Relations Act, there is no set definition for reinstatement therefore it is important to consider court decisions in order to define reinstatement. Case law suggests that in its simplest terms reinstatement means "to put an employee in the same position he/she was in prior to dismissal." This means that the employee will resume his or her position on the same terms and conditions as if the dismissal did not occur.
How the date of reinstatement is defined
S193 (1) (a) of the Act states that: "If the Labour Court or an arbitrator appointed in terms of this Act finds that a dismissal is unfair, the Court or the arbitrator may, order the employer to reinstate the employee from any date not earlier than the date of dismissal." Therefore the date of reinstatement will depend on the Court or the arbitrator.
In Equity Aviation Services (Pty) Ltd v CCMA21 the court stated that: "The ordinary meanings of the word re-instate means that the reinstatement will not run from a date after the arbitration award. Ordinarily then, if a commissioner of the CCMA orders the reinstatement of an employee that reinstatement will operate from the date of the award of the CCMA, unless the commissioner decides to render the reinstatement retrospective."
Back pay vs compensation
The issue of reinstatement made retrospectively with back pay was also dealt with. It was stated that reinstatement with back pay is not the same as the remedy of compensation as indicated in S194 of the Act and if awarded back pay by the court or arbitrator it should not be seen as compensation but rather as part of reinstatement.
When reinstatement is not desirable
When an employee is dismissed, the relationship between employer and employee generally deteriorates due to a lack of trust within the relationship. Tensions between the parties might rise making reinstatement of no beneficial effect on either party. Therefore a court or arbitrator cannot force an employee to accept the remedy of reinstatement. The Act has taken this somewhat into consideration. In terms of S193 (2) of the Act, the Labour Court or arbitrator must require the employer to reinstate or re-employ the employee unless:
(a) the employee does not wish to be reinstated or re-employed;
(b) the circumstances surrounding the dismissal are such that a continued employment relationship would be intolerable;
(c) it is not reasonably practicable for the employer to reinstate or re-employ the employee; or
(d) the dismissal is unfair only because the employer did not follow a fair procedure.
Best interests of all parties considered
Therefore the court or the arbitrator cannot force the employee to be reinstated or re-employed. The best interests of the parties should be considered when making a decision regarding reinstatement.
Our Employment and Labour Law team are experienced and offer expert advice in all matters relating to employer/employee contracts, arbitration, dispute resolution and matters before the CCMA.
May 9, 2019
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
