How much compensation will I get for unfair dismissal in South Africa

 

Unfortunately, there’s no one-size-fits-all answer to how much compensation you’d get for unfair dismissal in South Africa. The amount awarded depends on several factors, including:

 

• 📌 Severity of the Dismissal: Generally, compensation increases with the severity of the unfair dismissal. “Automatically unfair dismissals” (based on discrimination, exercising employee rights, etc.) often attract higher compensation than regular unfair dismissals due to misconduct or poor performance.

 

• 📌 Employee’s Remuneration: Compensation is typically calculated as a multiple of the employee’s monthly earnings. So, someone with a higher salary would generally receive more compensation than someone earning less.

 

• 📌 Length of Service: Employees with longer service periods might be awarded more compensation to reflect the potential difficulty finding a new job after a longer tenure.

 

• 📌 Loss Suffered: The financial losses incurred due to the dismissal can be considered. This might include lost income during the job search period and benefits lost due to termination.

 

 

Limits on Compensation

 

• ✅ Ordinary Unfair Dismissal: The maximum compensation for an ordinary unfair dismissal is capped at 12 months of the employee’s remuneration at the date of dismissal (section 194 of the Labour Relations Act).

 

• ✅ Automatically Unfair Dismissal: Compensation for automatically unfair dismissal must be just and equitable** in all circumstances, but cannot exceed 24 months of the employee’s remuneration at the date of dismissal (section 194 of the Labour Relations Act).

 

 

Determining Compensation

 

The Commissioner or Arbitrator hearing the case considers the factors mentioned above and issues a binding decision on the compensation amount.

 

Here are some additional points to consider:

• ✅ Settlement Agreements: In some cases, you might reach a settlement agreement with your employer where you agree on a specific compensation amount in exchange for waiving your right to further legal action.

 

• ✅ Legal Advice: A lawyer specializing in labour law can advise you on potential compensation ranges based on your specific situation and the legal merits of your case.

 

 

By understanding these factors and limitations, you can have a more realistic idea of the potential compensation for unfair dismissal in South Africa. Remember, consulting a lawyer can provide more specific guidance based on the details of