Hollywood Sportsbrook Gauteng v Commission for Conciliation Mediation and Arbitration and Others (JR2519/21) [2024] ZALCJHB 146 (7 April 2024)

Saflii

Automated Summary

Key Facts

The applicant, Hollywood Sportsbook Gauteng, dismissed the employee, Ms. Lirontso Jacqueline Mokoena, for gross misconduct, including failing to report colleagues who printed credit bets and gambled on duty. The employee claimed she was unaware of prohibitions on credit bets and that her colleagues' actions were authorized. The CCMA commissioner initially found her dismissal substantively unfair, ordering reinstatement with 12 weeks of backpay. The Labour Court reviewed this, concluding the employee was an accomplice to the misconduct by facilitating credit bets and witnessed the violations, constituting dishonesty that irreparably damaged the trust relationship. The court set aside the commissioner's award, ruling the dismissal substantively and procedurally fair.

Issues

  • The applicant challenged the commissioner's implication of inconsistent disciplinary application, but the court deemed this issue moot after upholding the review on the grounds of the employee's accomplice role and dishonesty.
  • The court determined that the employee's facilitation of credit bets (e.g., sharing login details, enabling transactions) amounted to dishonesty, which irreparably breached the trust relationship required in employment, justifying the dismissal.
  • The court evaluated whether the charge of being an accomplice to misconduct (credit bets) constituted a competent verdict under the doctrine of derivative misconduct, finding that it was a lesser offence akin to the main charge and thus a valid basis for dismissal.

Holdings

  • The Labour Court found that the employee was an accomplice to the misconduct by facilitating credit bets placed by her colleagues. Her conduct constituted dishonesty, which compromised the trust relationship with the employer. The court determined that the employee's dismissal was substantively and procedurally fair.
  • The court reviewed and set aside the arbitration award which had reinstated the employee. The decision was based on the conclusion that the commissioner's award was not one that a reasonable decision-maker could reach, as it was disconnected from the evidence and involved speculation.

Remedies

  • The arbitration award under case number GAVL3546-20 is hereby reviewed and set aside.
  • There is no order as to costs.
  • The arbitration award is substituted by the following: 'The dismissal of the third respondent was substantively and procedurally fair'.

Legal Principles

  • The employee's physical actions, such as permitting a colleague to use her terminal for credit bets and handing over a mobile phone to facilitate misconduct, constituted the actus reus (guilty act) necessary for accomplice liability.
  • The employee's mens rea (guilty mind) was established through her knowledge of workplace rules against credit bets and her conscious facilitation of the misconduct, including foreseeing the possibility of illegal bets being placed.
  • The court emphasized the duty of good faith between employer and employee, particularly in the context of derivative misconduct. Employers must protect employees' rights while expecting disclosure of misconduct, and employees must act in good faith by reporting known violations.
  • The court applied the doctrine of competent verdicts, finding that being an accomplice was a lesser offense akin to the main charge of failing to report misconduct. This allowed the employer to justify the employee's dismissal under a different but related legal framework.

Precedent Name

  • EOH Abantu (Pty) Ltd v Commission for Conciliation, Mediation and Arbitration and Others
  • Securitas Specialised Services (Pty) Ltd v Commission for Conciliation Mediation and Arbitration and Others
  • NUMSA obo Nganezi and Others v Dunlop Mixing and Technical Services (Pty) Limited and Others
  • King Price Insurance Company Ltd
  • African Meat Industry & Allied Trade Union & others v Shave & Gibson Packaging (Pty) Ltd

Cited Statute

Labour Relations Act, No. 66 of 1995, as amended

Judge Name

MI Savant

Passage Text

  • I am satisfied that the employee acted as an accomplice in respect of the credit bets that were placed. The crux of this form of misconduct constitutes dishonesty.
  • On a conspectus of the above, I am inclined to uphold the applicant's review application. I do not believe that the commissioner arrived at a decision that a reasonable decision maker could have arrived at. In short, the outcome arrived at in the award is unreasonable.
  • The employee also displayed no remorse throughout the proceedings for her conduct and only attempted to shift the goal post. This serves as a further indicator why the trust relationship between the parties cannot be salvaged.