|
THE REFERRAL OF TRIVIAL AND UNFOUNDED CASES TO CCMA AND THE COST ORDERS ASSOCIATED THEREWITH
The CCMA is currently dealing with over 100 000 cases every year. This is in
addition to the thousands of cases handled by the other labour law
dispute-resolution bodies - the Labour Court, Labour Appeal Court,
bargaining councils and private arbitration forums.
The majority of these cases relate to allegations of unfairness brought by
employees against employers. These allegations include, but are not limited
to, issues relating to discrimination; dismissal for misconduct, poor
performance, illness/injury or incompatibility; retrenchments; provision of
benefits; training; promotion; demotion; suspension; warnings; pregnancy;
probation; takeovers and mergers; whistle-blowing; sexual harassment; mutual
interest dismissals; victimisation due to the exercising of legal or
organisational rights.
The majority of these cases contain employee allegations that are backed up,
to one extent or another, by facts. On the other hand, there are a
significant number of dispute referrals that are based on fabrication and/or
facts that are deliberately misrepresented.
The employees lose approximately 40% of cases referred to CCMA arbitration.
It is accepted that many of these cases have been lost due to poor provision
of evidence by the employee rather than due to the fact that the allegations
are false.
However, at least some of these cases brought by employees will have been
lost due to the complete lack of truth. It is easy for employees to refer
disputes to the CCMA and to most other dispute resolution bodies. The
referral process is simple and free of cost. Employees are allowed to refer
cases and to present their cases at conciliation, arbitration and at court
on their own, without representation. This means that they do not have to go
to the expense of hiring lawyers to assist them. This makes it tempting for
dishonest employees to abuse the system in order to make some money at the
expense of employers. The CCMA does not charge employees for its services
and it has processes to assist applicants with the process of lodging their
dispute. There are important motives for the bringing of false claims
against employers.
There may be employees (hopefully they are in the small minority) who bring
cases against employers due to vindictiveness based on some unrelated matter
or because they would rather extort money out of employers at the CCMA than
earn their money honestly or where the employee simply refers a case to CCMA
or bargaining council as a means of evading discipline. The strategy
employed by such employees is that attack is the best form of defence. Not
only is such a practice dishonest but it is also a waste of the CCMA's and
the employer's time and resources. The Labour Relations Act however, makes
provision for the awarding of costs in respect of the arbitration
proceedings in sections 138(10).
Many parties to arbitration hearings and applicants in particular are often
unaware of the fact the cost awards can be made against them should the
commissioner find that they had no grounds for making such claim
Cost awards of this kind may be made by a commissioner in favour of ether
party to the dispute of indeed to the CCMA itself, if it is held that the
party against whom costs have been awarded has acted in a frivolous and/or
in a vexatious manner.
If the CCMA decides that a party has unnecessarily and inadvisably incurred
cost for the CCMA which should and could have been avoided, the CCMA is
entitled to award costs against such party, or in favour of the CCMA.
Costs of this type are often referred to as wasted costs. In such cases the
employee can be ordered to pay part of the employer's legal costs or even
pay the wasted costs to the CCMA.
In Simane v Coca-Cola (2006, 10 BALR 1044) the CCMA agreed that the employee
had been guilty of dishonesty. As he had lodged a case for unfair dismissal
knowing that it was not genuine the CCMA awarded costs against him.
In Ndwalane v The Magic Company (Pty) Ltd (2006, 5 BALR 497) the employee
was employed on the basis of a fixed term contract.When the fixed term
contract expired and he was told to go, he lodged an unfair labour practice
case against the employer. However, he brought no proof of unfairness and
the arbitrator found his case to have been frivolous and vexatious. He was
ordered to pay part of the employer's legal costs. This issue was further
dealt with in Stambles v Total SA (Pty) ltd [GA83273] and SACU obo Petzer v
Telkom [EC16511]
While employees must beware of misusing the dispute-resolution process,
employers need to exercise caution as well. That is, employers should make
sure that they do not give employees cause to take them to the CCMA or other
dispute forum and avoid jumping to the conclusion that the employee's case
will be found to be fabricated, frivolous or vexatious.
That is, employers must not become complacent even when they are sure that
the employee's allegations are false. The employer still needs to prepare
and present a solid case to prove the falsity of the employee's claims,
obtain advice from a reputable labour law expert in investigating and
assessing the employee's allegations and in preparing for the arbitration
hearing.
LE ROI NAUDE
Copyright © LegalNexus is an Authorised Fiancial Services Provider
|