Comprehensive Guide to CCMA Awards in South Africa

The Commission for Conciliation, Mediation and Arbitration (“CCMA”) is an independent body in South Africa that plays a crucial role in resolving labour disputes and promoting fair employment practices. As part of its mandate, the CCMA has the authority to make various types of awards to address grievances and disputes. In this article, we will explore the different types of awards that can be made by the CCMA and provide an overview of the process involved.

Compensation Awards

Compensation awards are one of the most common types of awards made by the CCMA. These awards aim to provide financial relief to an aggrieved party for losses suffered as a result of unfair treatment or unfair dismissal. The CCMA considers factors such as the employee's length of service, earnings and the circumstances surrounding the dispute when determining the appropriate compensation.

Reinstatement Awards

In cases where an employee has been unfairly dismissed, the CCMA may order reinstatement. Reinstatement awards require the employer to reinstate the employee to their previous position with all rights and benefits restored. However, in some cases, the CCMA may grant reinstatement with retrospective effect, meaning the employee is deemed to have never been dismissed and is entitled to backdated pay.

Re-employment Awards

When reinstatement is not viable or appropriate, the CCMA may make a re-employment award. Re-employment awards require the employer to offer the employee alternative employment in a position similar to their previous role. The terms and conditions of the re-employment should be fair and comparable to the original position.

Compensation for Unfair Discrimination

In instances where an employee has been subjected to unfair discrimination, the CCMA may make an award for compensation. The compensation is aimed at redressing the harm suffered by the employee due to discrimination based on grounds such as race, gender, disability or age. The CCMA will consider the nature and extent of the discrimination, as well as the impact on the employee, in determining the appropriate compensation.

Compliance Orders

In addition to monetary awards, the CCMA can issue compliance orders to ensure that parties adhere to their legal obligations. Compliance orders may include directives to reinstate an employee, cease unfair labour practices or implement specific corrective measures. Failure to comply with a CCMA compliance order can result in further legal consequences.

Costs Orders

The CCMA has the power to make costs orders against a party that has acted unreasonably or frivolously during the proceedings. Costs can only be awarded in respect of arbitration hearings. Costs orders may require the party to pay the legal costs of the opposing party, including representation fees and related expenses. This serves as a deterrent against engaging in unfair or vexatious conduct during CCMA proceedings.

Conclusion

The CCMA plays a crucial role in resolving labour disputes in South Africa and has the authority to make various types of awards to address grievances. These awards include compensation, reinstatement, re-employment, compensation for unfair discrimination, compliance orders and costs orders. It is essential for employees and employers to understand the different types of awards that can be made by the CCMA and the implications they have on their rights and obligations.

If you would like to find out more, contact our offices to speak to one of Labour Law attorneys.