ARTICLE · 15 MARCH 2012

Compensation Possible For Unfair Dismissal

Routledge Modise

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The Labour Relations Act sets out limitations to the amount of compensation an employee can receive for being unfairly dismissed or for being the victim of an unfair labour practice.

South AfricaEmployment and HR

Lavery Modise

Jean Ewang

The Labour Relations Act sets out limitations to the amount of compensation an employee can receive for being unfairly dismissed or for being the victim of an unfair labour practice.

The compensation limits for a dismissal will depend on whether the dismissal is classified as being "automatically unfair" or not.

Section 194 of the LRA prescribes that if an employee's dismissal is found to be procedurally unfair and/or substantively unfair, then the employee may be awarded up to 12 months' compensation.

But if a dismissal is found to be automatically unfair an employee is entitled to receive up to 24 months' compensation. In all instances compensation is equal to the employee's remuneration at the date of dismissal.

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