LABOUR RELATIONS ACT: CCMA ISSUES NEW ARBITRATION PROCEEDINGS DIRECTIVE

LABOUR RELATIONS ACT: CCMA ISSUES NEW ARBITRATION PROCEEDINGS DIRECTIVE

• 29 May 2023
• Labour Law
• SA Legal Academy

On 27 May 2023, the Commission for Conciliation, Mediation & Arbitration (CCMA) issued a directive on dismissals under section 138(5)(a) of the Labour Relations Act (LRA), 1995 – repealing one in place since 5 October 2021.

Sub-section 138(5)(a) deals with arbitration proceedings in which the referring party fails to appear in person or to send a representative to the ensuing CCMA hearing. This is now understood to be good reason for a commissioner to dismiss the matter.

A Labour Court ruling in August 2021 interpreted sub-section 138(5)(a) as ‘an administrative act’. At the time, it was held that in such circumtances section 144 of the LRA  (variation and rescission of arbitration awards) does not apply. Instead, the matter should be removed from the roll. The applicant may then request that it be ‘re-enrolled’.

On 18 May 2023, the Labour Appeal Court rejected this interpretation of sub-section 138(5)(a) and overturned the ruling.

According to the new directive, this decision ‘created new practice and procedures’ to be adopted by parties and the CCMA when applying sub-section 138(5)(a) of the LRA and CCMA Rule 30.

Against that backdrop, by 9 June 2023 the CCMA is expected to have issued guidelines on:

• factors to be considered when exercising the power to dismiss, and
• how to deal with matters pending in terms of the CCMA’s repealed October 2021 directive.

For more information, please click the link below:

• directive

Published by SA Legal Academy Policy Watch

0 COMMENTS

LEAVE A COMMENT