{"id":42819,"date":"2025-07-29T11:39:08","date_gmt":"2025-07-29T09:39:08","guid":{"rendered":"https:\/\/stbb.co.za\/dev2\/?p=42819"},"modified":"2025-08-01T17:29:44","modified_gmt":"2025-08-01T15:29:44","slug":"pulse-the-case-of-the-fabricated-reason-for-dismissal-a-cautionary-tale-for-employers","status":"publish","type":"post","link":"https:\/\/stbb.co.za\/dev2\/pulse-the-case-of-the-fabricated-reason-for-dismissal-a-cautionary-tale-for-employers\/","title":{"rendered":"Pulse | The case of the fabricated reason for dismissal: A cautionary tale for employers"},"content":{"rendered":"

A recent Labour Court judgment in Mqikela v Pristo Response Trading<\/u><\/em><\/a> demonstrates how attempting to disguise the true reason for an employee\u2019s dismissal can backfire \u2014 both financially and reputationally. In this key case, the court\u2019s message was clear: Retaliation against employees for asserting their statutory rights will not be tolerated.<\/p>\n

The key facts<\/strong><\/p>\n

An HR Manager at Pristo Response Trading, Ms Mqikela (\u2018the Plaintiff\u2019) was dismissed shortly after referring an unfair labour practice to the CCMA. Although the company (\u2018the Defendant\u2019) claimed the dismissal was part of a retrenchment process linked to outsourcing, the timing and inconsistencies in their explanation revealed a different story.<\/p>\n

The Plaintiff had raised a grievance internally regarding bonuses and salary disparities, which remained unresolved for over a year. In January 2022, she referred an unfair labour practice to the CCMA. The following day, she was informed of a potential retrenchment \u2013 allegedly due to operational requirements. A formal notice followed, which pinpointed financial strain and outsourcing as the basis for the retrenchment. Crucially, only the Plaintiff was targeted. She was dismissed in April 2022.<\/p>\n

The Labour Court\u2019s findings<\/strong><\/p>\n

In assessing the evidence, the Labour Court focused on the true reason for dismissal. Ultimately, it found significant contradictions in the employer\u2019s version of events, including inconsistent dates and unsubstantiated claims. Indeed, the retrenchment appeared to be a smokescreen, and the dismissal was ultimately triggered by the Plaintiff\u2019s referral to the CCMA.<\/p>\n

According to section 187(1)(d) of the Labour Relations Act (\u2018the Act\u2019), a dismissal is automatically unfair if the employee took action \u2013 by exercising their statutory rights \u2013 against their employer. In line with the precepts of this provision, which is designed to allow employees to challenge their employer\u2019s conduct in the appropriate forum, the court deemed the Plaintiff\u2019s dismissal to have been automatically unfair.<\/p>\n

Consequently, the Plaintiff was awarded 20 months\u2019 compensation, namely R300 000.00, and the Defendant was ordered to pay the costs of suit. In formulating the order, the Labour Court emphasised that the Defendant\u2019s conduct \u2013 knowingly advancing a false reason \u2013 warranted a serious response. In addition, it criticised the employer for approaching it \u2018with dirty hands\u2019, a term reserved for particularly disingenuous litigants.<\/p>\n

A lesson to employers<\/strong><\/p>\n

The outcome of the case highlights the obvious riskiness of deceptive dismissals that attempt to mask retaliation as retrenchment, as well as the clear protections for employees established by the Act, including reinstatement and compensation. Ultimately, dismissals must be both procedurally and substantively fair \u2013 and those closely followed by the exercise of a clear statutory right, namely referring a purportedly unfair labour practice to the CCMA, will undoubtedly attract additional scrutiny.<\/p>\n

Poorly handled dismissals can result in large payouts, reputational damage, and adverse cost orders. Don\u2019t get caught out. Contact our labour law specialists at labour@stbb.co.za<\/a> for expert legal guidance.<\/p>\n

This content is the property of STBB. We encourage the sharing of our content for informational purposes. However, if you wish to copy or reproduce our content on your own platform or website, please ensure that proper credit is given to STBB<\/em>.<\/p>\n","protected":false},"excerpt":{"rendered":"

A recent Labour Court judgment in Mqikela v Pristo Response Trading demonstrates how attempting to disguise the true reason for an employee\u2019s dismissal can backfire \u2014 both financially and reputationally. In this key case, the court\u2019s message was clear: Retaliation<\/p>\n","protected":false},"author":364,"featured_media":42820,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[99,98,137,193],"tags":[],"class_list":["post-42819","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-published-labour-law","category-articles-published-litigation-and-dispute-resolution","category-latest","category-pulse"],"acf":[],"yoast_head":"\nPulse | The case of the fabricated reason for dismissal: A cautionary tale for employers - STBB<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/stbb.co.za\/dev2\/pulse-the-case-of-the-fabricated-reason-for-dismissal-a-cautionary-tale-for-employers\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Samantha Smith\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/pulse-the-case-of-the-fabricated-reason-for-dismissal-a-cautionary-tale-for-employers\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/pulse-the-case-of-the-fabricated-reason-for-dismissal-a-cautionary-tale-for-employers\\\/\"},\"author\":{\"name\":\"Samantha Smith\",\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#\\\/schema\\\/person\\\/805b4884d2d0620da8c730a20588b52a\"},\"headline\":\"Pulse | The case of the fabricated reason for dismissal: A cautionary tale for employers\",\"datePublished\":\"2025-07-29T09:39:08+00:00\",\"dateModified\":\"2025-08-01T15:29:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/pulse-the-case-of-the-fabricated-reason-for-dismissal-a-cautionary-tale-for-employers\\\/\"},\"wordCount\":527,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/pulse-the-case-of-the-fabricated-reason-for-dismissal-a-cautionary-tale-for-employers\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/stbb.co.za\\\/dev2\\\/wp-content\\\/uploads\\\/2025\\\/07\\\/NUMBER-TWO-CAUTIONARY.png\",\"articleSection\":[\"Articles Published - 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