The R85,000 Mistake: How One Bad Dismissal Can Tank an SA SME
In South Africa, an unfair dismissal at the CCMA can result in compensation of up to 12 months salary, legal fees of R15,000–R40,000, and the very real possibility of reinstatement. Most dismissals fail not because they're substantively wrong — but because the procedure is wrong.
Why Dismissals Go Wrong
- Procedural fairness failures: no hearing, no right to representation, no written notice
- Documentation gaps: no written warnings, no performance improvement plan records
- Inconsistency: dismissing one employee for conduct tolerated in others
- Flawed employment contracts with missing BCEA Schedule 1 particulars
The 5 Red Flags in SA Employment Contracts
- No disciplinary procedure reference or attached code
- Leave clauses that don't match BCEA minimums
- No POPIA data processing consent clause
- Restraint of trade with no consideration
- Missing dispute resolution clause referencing the CCMA