Employment disputes can swiftly escalate into costly, protracted affairs, posing significant reputational risks to the parties involved. Settlement agreements, when not meticulously crafted, often end up contested in court, contributing to the myriad forms of labour disputes that unfold within workplaces.

Factors Influencing High Labour Law Litigation Rates 

South Africa experiences a particularly elevated rate of labour litigation, a phenomenon attributable to Section 34 of the Constitution Act 107 of 1996, guaranteeing the right to a fair public hearing for dispute resolution. The establishment of the CCMA and Labour Courts aims to provide independent, impartial tribunals and ensure fair labour practices in line with Section 23 of the Constitution.

CCMA's Role

The CCMA plays a pivotal role in resolving disputes, initiating the conciliation process as a first step. 

Settlement Dynamics

The decision to settle or pursue litigation depends on the specific circumstances of each case. Some employers may resist settling claims that could set unfavourable precedents, especially when dealing with employees dismissed for misconduct or poor performance.

Arbitration and Legal Landscape 

When disputes are not resolved through conciliation, arbitration becomes the next step. The Labour Relations Act emphasizes the speedy and cost-effective resolution of disputes by the CCMA. While no appeal lies from the CCMA, the Labour Courts scrutinize its decisions to ensure accessibility, affordability, and quick resolution of workplace disputes.

CCMA's Capacity and Financial Jurisdiction

The CCMA, seemingly designed for cases up to R 350,000, faces challenges when handling claims exceeding this threshold. The system may not be equipped to handle disputes with financial implications reaching hundreds of thousands or even millions of rands.

Financial Implications and Enforcement

Recent cases highlight the increasing monetary claims in the CCMA, with awards becoming more easily enforceable. However, this raises risks for both parties, especially considering the potential for reinstatement with full back pay. 

Conclusion

In navigating the complex terrain of employment disputes in South Africa, careful consideration of jurisdictional limits, proper settlement advice, and an understanding of local legal nuances are essential. The current legal landscape demands a strategic approach, acknowledging the challenging nature of labour litigation as an arena that requires thorough preparation.

Written by Robyn Shepherd, SchoemanLaw