08/01/2026
HOW MUCH ONE CAN GET FROM AN UNFAIR DISMISSAL?
The Labour Relations Act 66 of 1995 (the LRA) provides the following remedies for an unfair dismissal:
- The employer to reinstate the employee on the same terms and conditions of employment before the dismissal.
-The employer to re-employ the employee, which may be on new terms and conditions of employment.
-The employer to pay compensation to the employee.
If compensation is granted as relief, the quantum is determined at the discretion of the Commissioner or Judge adjudicating the dispute.
The maximum compensation which may be awarded is capped at a maximum of 12 months remuneration for an ordinary unfair dismissal (e.g., misconduct or incapacity) alternatively, 24 months remuneration for an automatically unfair dismissal (e.g., dismissal due to pregnancy/discrimination or protected disclosure).
Compensation must be just and equitable in all circumstances. There are no fixed factors to measure what is fair and equitable.
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