This post may contain affiliate links, which means that I may earn a commission if you click on the link & sign-up or make a purchase. You will NOT be charged extra for using the link, but it goes a long way in supporting this blog. I only recommend products or services that I have personally used or believe will add value to my readers.
In the past, employees often resigned to avoid facing disciplinary hearings. However, recent rulings from the Labor Court have changed this practice.
This article delves into the specifics of a landmark case involving Standard Bank, clarifying the implications of resigning to evade a disciplinary hearing.
Understanding the Case
In this noteworthy case, an employee was summoned to attend a disciplinary hearing after cashing a check without adhering to the proper procedures. The check turned out to be fraudulent, resulting in a loss of approximately R30,000 for the employer.
Upon receiving the notice for the disciplinary hearing, the employee submitted an immediate resignation letter, believing that this act would terminate the employment relationship instantly.
The Employer’s Response
Standard Bank, however, informed the employee that she was required to serve her notice period and that the disciplinary hearing would proceed during this time. The employee contested this, asserting that her resignation had ended the employment relationship immediately.
Despite her absence, the disciplinary hearing was conducted, and she was found guilty, leading to her dismissal. Additionally, it is believed that her name was listed on the R.E.D.S database.
Labor Court’s Initial Ruling
Initially, the Labor Court ruled in favor of the employee, stating that once an immediate resignation is submitted, the employment relationship terminates, rendering any subsequent disciplinary actions null and void. This decision suggested that Standard Bank’s actions were invalid.
Appeal to the Labor Appeal Court
The case was then taken to the Labor Appeal Court, which provided a crucial clarification. The court emphasized that an immediate resignation does not exempt an employee from serving their notice period.
The employment contract remains in effect until the notice period concludes unless the employer decides to waive this requirement. Thus, an employer is entitled to conduct a disciplinary hearing during the notice period, regardless of the resignation’s immediate nature.
Key Takeaways
- Resignation and Notice Period: Resigning with immediate effect does not automatically terminate the employment relationship. The notice period must still be served unless waived by the employer.
- Disciplinary Hearings: Employers retain the right to proceed with disciplinary hearings during the notice period. Immediate resignation does not shield an employee from facing these proceedings.
- Legal Implications: This ruling underscores the importance of understanding the legal nuances of resigning amidst disciplinary actions. Employees should prepare for disciplinary hearings and seek legal advice if necessary.
Conclusion
The Labor Appeal Court’s decision provides clear guidance on the matter of resigning to avoid disciplinary hearings. Employees cannot simply escape disciplinary actions by resigning immediately; the employment contract and notice period obligations still stand.
If you find yourself in a similar situation or need assistance with a disciplinary hearing, consider seeking legal advice to navigate the complexities involved.