The Labour Court in Cape Town overturned the decision of the Commission for Conciliation, Mediation and Arbitration (CCMA), which had upheld the dismissal of an employee by the Cape Peninsula University of Technology (CPUT). The court found that the university failed to adequately consider her medical condition or explore alternatives to termination.
Court's Position and Basis for Decision
Judge Molatelo Mahura concluded that CPUT did not fulfil its legal obligations to investigate reasonable accommodation measures or consider sick leave before dismissing the employee on the grounds of inability to work due to health issues. The case was brought by the union Solidarity on behalf of the worker, who sought a review and reversal of the CCMA's arbitration ruling.
Although the commissioner had previously found the dismissal procedurally unfair and awarded compensation equivalent to one month's salary, he had concluded that the dismissal itself was substantively fair. However, the court reviewed this decision.
Employment History
The woman began working at the university in May 1996, holding the position of Human Capital Administrator at the time of her dismissal. Between 2015 and 2018, she was seconded to various departments before returning to her main post in January 2019.
Her health problems significantly worsened in 2018 when she was diagnosed with anxiety disorder and depression. These medical difficulties were later compounded by a physical injury, including a finger amputation in August 2021 and subsequent wrist surgery in 2023.
Health Assessment Process
Following the psychological diagnosis, she was referred to occupational therapist Al-Mari Bothes, who conducted several assessments. Bothes identified a significant mismatch between the woman's cognitive abilities under pressure and the strict deadlines required by her role, noting that her chronic condition substantially reduced productivity. Despite later reports from late 2022 indicating slight improvement in mental state following therapeutic intervention, CPUT decided to initiate a formal incapacity investigation in June 2023 instead of continuing to implement recommended working conditions.
She was dismissed immediately in July 2023. The university's approach to the incapacity process came under scrutiny during the court proceedings.
Employer Obligations
The court ruled that employers dealing with employees suffering from health issues must do more than merely state that the employee can no longer perform their duties. Employers must conduct a thorough investigation into the extent of the employee's incapacity, assess whether reasonable accommodation would allow the employee to continue working, and consider alternatives to dismissal before ending employment.
Judge Mahura found that CPUT relied too heavily on past workplace transfers that occurred before the incapacity process began and failed to demonstrate that it properly considered reasonable accommodation during the relevant incapacity investigation. The court also criticized the university for failing to assist or properly consider the employee's request for sick leave after the incapacity process commenced.
According to the ruling, sick leave represented an obvious alternative that should have been fully explored before the university made the decision to dismiss. The court held that CPUT's failure to consider this option rendered the dismissal substantively unfair.
Final Court Ruling
Judge Mahura further stated that the commissioner made material errors of fact and law by concluding that the dismissal was substantively fair, despite evidence that the employer failed to comply with labour legislation governing dismissals due to incapacity. The court emphasized that employers are expected to actively seek reasonable accommodation measures and alternatives to dismissal, especially if the employee's inability to work is caused by health problems rather than misconduct or poor performance.
As a result, the Labour Court reviewed and set aside the CCMA's arbitration award regarding the substantive fairness of the dismissal, replacing it with a finding that the dismissal was substantively unfair. CPUT was ordered to pay the former employee eleven months' compensation amounting to R497,948, in addition to the monthly compensation previously awarded for procedural unfairness in the dismissal.