Where an employee has been unfairly dismissed, the court may
order that the employer reinstate the employee retrospectively with
back pay. The rationale behind such an order is to place the
employee in the position he or she would have been in save for the
dismissal.
The question then is whether the back pay is inclusive of any
other employee benefits, financial or otherwise, provided for in
the employment contract or company policy.
In the case of E Ndlovu v Coca-Cola SA (Pty) Ltd the Labour
Court had found that the employee was unfairly dismissed and
ordered the employer to reinstate the employee and pay 'arrear
salary' between the date of dismissal and the date of
reinstatement. The employer paid the employee but he contended that
the arrear salary fell short of amounts to which he was entitled
namely annual increases and incentive bonuses. The employer
contended that it had complied with the court order by paying the
employee the arrear salary calculated on the
