When Reporting Lines Change: Constitutional Court Clarifies The Test For Constructive Dismissal

The Constitutional Court of South Africa has delivered a significant, albeit divided, judgment in Maleka v Boyce N.O. and Others, reaffirming the stringent requirements for establishing a constructive dismissal under section 186(1)(e) of the Labour Relations Act 66 of 1995 ("LRA"). The decision raises important questions, including whether an employer's unilateral change to an employee's reporting line renders continued employment objectively intolerable and the extent to which an employee must exhaust internal remedies before resigning.

Factual background

Mr Reynolds Maleka, a highly qualified professional holding a Bachelor of Commerce and an MBA degree with approximately 15 years of experience in Information Technology ("IT"), was employed by Tyco, an Irish multinational, as the IT Director. He was placed with ADT Security (Pty) Limited, a South African subsidiary, where he served as a member of the Executive Committee ("Exco"). In this role, Mr