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ARTICLE · 16 MAY 2025

Hedging Your Bets In Litigation Is Not Permissible

The Labour Appeal Court, in Ithala SOC Ltd v Ntombela and others, found that the employer was not permitted, having reinstated the employees following a finding that their dismissals...

CanadaEmployment and HR

The Labour Appeal Court, in Ithala SOC Ltd v Ntombela and others, found that the employer was not permitted, having reinstated the employees following a finding that their dismissals were substantively unfair, to seek to appeal that finding before the Labour Appeal Court.

Permitting employers to take employees back while still seeking to appeal the reinstatement award to minimise their potential liability of the payment of backpay would, so the Labour Appeal Court held, turn courts into a gambling den – with a litigant bringing a matter before court not so much to vindicate an entitlement, but to hedge against exposure. Such a stratagem, the Court held, is odious to the law.

The matter came before the Labour Appeal Court as an appeal against the dismissal of the employer's review application. The Labour Court had dismissed the review application and upheld the arbitrator's award that the dismissal of the employees was substantively unfair and that they be

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