When it comes to labor disputes, companies that opt to disregard a judgment handed down by the CCMA Commission for Conciliation, Mediation, and Arbitration do so at their peril.
According to Section 143 of the Labour Relations Act, an arbitration award certified by the CCMA carries the weight of a decree from the Labour Court, rendering it legally binding.
Dismissing CCMA awards as inconsequential is a perilous move for employers, emphasizes Head of the HCM Business Unit at CRS Technologies, Nicol Myburgh.
Myburgh says “Failing to comply with these directives can prompt the employee to seek recourse, which can swiftly ensnare the business in prolonged and costly legal quagmires and may ultimately lead to its eventual downfall.”
“For example, if an employer chooses to disregard a ruling to reinstate an employee it had previously dismissed, the employee has the right to apply to the CCMA for certification of the award.”
“If the employer continues to defy the CCMA judgement, the employee is entitled to approach the Labour Court to initiate contempt of court proceedings, further exacerbating the legal jeopardy faced by the non-compliant company.” he adds
Possible costs to the companies
“Additionally, if the ruling included a monetary sum, the employee is entitled to hand the certified award directly to the Sheriff of the Court to seize assets belonging to the defaulting employer to pay the compensation.”
“Companies who try to circumvent or brush aside the authority of CCMA rulings are wasting their time – and money.” continues Myburgh
“It’s crucial to understand that these rulings are tantamount to court orders and must be treated as such.”
Rather go the preventative route
While seeking assistance from legal professionals such as criminal or civil defense attorneys can be pivotal for companies embroiled in such situations, Myburgh points out that most CCMA cases can be prevented, or at the very least, minimized.
CRS’s HR Tech
“This is where an outsourced HR services provider such as CRS and its tech solutions and services can prove invaluable. Most business professionals are not experts in labour law or human rights, but CRS excels in HR and industrial relations and can help companies gain the upper hand over labour issues.”
“Rather than allow your business to become entangled in a legal battle, our consultants can provide valuable guidance on navigating the complexities of CCMA rulings.”
“To safeguard their company’s interests and reputation, it is imperative for businesses to recognize the authority of CCMA judgments and take proactive steps to ensure compliance, thereby avoiding costly legal entanglements in the future.” concludes Myburgh
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