Super Group Gateway Services v Chakale and Others (JR 219/21) [2022] ZALCJHB 371 (1 September 2022)

Saflii

Automated Summary

Key Facts

The first respondent, Mmaleweng Elleanor Chakale, was employed as an invoice clerk by Super Group Gateway Services. On 23 April 2020, senior management issued clear written instructions requiring all upliftments (stock recalls) to be approved in writing by the COO or CEO. Despite this, on 6 July 2020, Chakale processed an R986,472.58 upliftment for Saania Distributors without obtaining required approvals from Craig Campbell or Anthony Reznik. She neither printed the documents for Jansen's approval nor secured written authorization from senior management. This resulted in a R102,672.00 revenue loss to the applicant. Chakale was charged with insubordination and negligence, leading to her dismissal on 23 July 2020. The CCMA arbitrator (Isaac Sakkie Kekana) found the dismissal substantively unfair (14 December 2020 award), awarding her R126,000 compensation. The applicant reviewed the award, arguing the arbitrator failed to consider clear management instructions and the employee's lack of remorse.

Issues

  • The court determined if the first respondent's non-compliance with senior management's written instructions to require approval for upliftments was a serious breach of duty, leading to significant financial loss and justifying her dismissal.
  • The court assessed whether the arbitrator's decision to find the dismissal substantively unfair was unreasonable under Section 145 of the LRA. The applicant argued the arbitrator failed to properly consider the evidence of misconduct.

Holdings

The Labour Court determined that the dismissal of Mmaleweng Elleanor Chakale by Super Group Gateway Services was substantively fair. The court found that the employee failed to comply with clear written instructions requiring senior management approval for upliftments, processed a transaction without authorization, and showed no remorse. The CCMA arbitrator's award of unfair dismissal was set aside and substituted with a ruling affirming the fairness of the dismissal.

Remedies

  • The arbitration award is substituted with a finding that the dismissal of the first respondent by the applicant was substantively fair
  • Arbitration award issued by the second respondent on 14 December 2020 is reviewed and set aside
  • Review application granted
  • No order as to costs

Legal Principles

  • The court applied the reasonableness standard for judicial review of CCMA arbitration awards, determining that an award is reviewable if a reasonable decision-maker could not have reached the same outcome. This was central to assessing whether the arbitrator's failure to consider key evidence rendered the award unreasonable.
  • The court emphasized principles of insubordination, requiring employees to obey clear lawful instructions, and the employer's right to establish operational procedures. It also considered the absence of remorse by the employee as a mitigating factor in dismissal cases.

Precedent Name

  • Gold Fields Mining South Africa (Pty) Ltd (Kloof Gold Mine) v Commission for Conciliation, Mediation and Arbitration and Others
  • (Pty) Ltd v Gaylard NO and Others
  • De Beers Consolidated Mines Ltd v Commission for Conciliation, Mediation and Arbitration and Others
  • CUSA v Tao Ying Metal Industries and Others
  • Msunduzi Municipality v Hoskins
  • National Union of Metal Workers of South Africa (NUMSA) obo Motloba v Johnson Controls Automotive SA (Pty) Ltd and Others
  • Campbell Scientific Africa (Pty) Ltd v Simmers and Others
  • Monare v SA Tourism and Others
  • Quest Flexible Staffing Solutions (Pty) Ltd v Legobate
  • Fidelity Cash Management Service v Commission for Conciliation, Mediation and Arbitration and Others
  • Greater Letaba Local Municipality v Mankgabe No and Others
  • National Union of Mineworkers v Commission for Conciliation, Mediation and Arbitration and Others
  • Sidumo and Another v Rustenburg Platinum Mines Ltd and Others
  • Anglo Platinum (Pty) Ltd v De Beer and Others
  • Independent Newspapers (Pty) Ltd v Media Workers Union of SA on behalf of McKay and Others
  • Absa Bank Ltd v Naidu and Others

Cited Statute

Labour Relations Act 66 of 1995 (as amended)

Judge Name

S Snyman

Passage Text

  • The applicant's review application is granted. The arbitration award issued by the second respondent... is reviewed and set aside. The arbitration award of the second respondent is substituted with an award that he dismissal of the first respondent... was substantively fair.
  • The failure of the first respondent to have done so [express remorse] should have weighed heavily against her... showed no contrition... cannot be trusted to carry out what she is specifically instructed to carry out.
  • In Humphries and Jewell (Pty) Ltd v Federal Council... a disregard by an employee of his employer's authority... amounts to insubordination... the relationship of trust... cannot continue.