Page 14 - KZN Business Sense-Vol6 No5
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DISMISSING EMPLOYEES DUE TO INCAPACITY



                   Nikita Pillay, Head: HR     only temporarily incapacitated    ill-health, the employer must take   ■   Employer’s product was not in    to avoid dismissals. For this to
                    & Compliance, DRG     (likelihood of recovery/   note that a thorough assessment     demand or              be effective, the consultation
                     Outsourcing        seriousness of injury/illness)  of the employee’s impairment   ■   Other reason beyond the    process must commence as soon
                                      ■   Provide the employee with the    must be conducted, and all     employee’s control.   as a reduction of the workforce,
                        ncapacity in     necessary assistance to perform    alternatives must be exhausted.  3) Incapacity Hearing – Poor   through retrenchments or
                        labour law      his/her duties              2) Incapacity – Due to Poor   Performance                   redundancies, is contemplated by
                     Iis the non-     ■   If possible, accommodate    Performance                                               the employer so that alternatives
                         blameworthy     the employee in a suitable                                If an employee’s performance   can be explored.
                        breach of       position – an employee’s status    There is no doubt that   does not improve to an acceptable   The more urgent the need by the
                        performance     and remuneration may alter    managing an employee’s      standard, termination of their   business to respond to the factors
                        standards.      (alternative employment).   performance can be one of the   employment may be an option.   giving rise to any contemplated
                        This means    ■   Must be fair reason and    most challenging parts of any   Employers cannot dismiss their   termination of employment, the
                       that the         procedure followed for      manager’s role. Often by the time   employees in circumstances that   more shortened the consultation
                       employee is      dismissal                   that the organisation’s formal   are ‘harsh, unjust or unreasonable’.   process might be. Urgency may
                     unable to cope                                 performance management                                      not, however, be induced by
        with the work due to ill-health, a   If after investigation and   process commences, difficult   However, it is important to be   the failure to commence the
        lack of performance in terms of   assessment, as set out above, the   and unproductive behaviours   fair to employees particularly   consultation process as soon as
        intentional or negligent under-  employee is still unable to carry   are already entrenched and the   when it comes to termination   a reduction of the workforce was
        performance, or incapacity due to   out his/her work obligations and   relationship between manager   of employment. They should be   likely. On the other hand, the
        operational reasons.          an alternative position is not   and employee has deteriorated.   given reasons for dismissal and   parties who are entitled to be
                                      feasible, the employer may give   Productivity is low and patience   an opportunity to respond to   consulted must meet, as soon and
        Incapacity – Medical Boarding   reasonable notice to the employee   is in short supply.   those reasons.                as frequently as may be practicable
        Due to Ill-Health             and have him/her medically    What are the reasons for Poor   Employers should not dismiss   during the consultation process.
          Medical boarding is the     boarded.                      Performance?                  poor performers without
        inability of an employee to work   An employer may only follow                            having attended to the above   Selection criteria that are
                                                                     There are many reasons why an
        according to the requirements of   the dismissal route as a last resort   employee may perform poorly.   requirements and without having   generally accepted to be fair
                                                                                                                                include length of service, skills
        his/her job as a result of ill-health   once all reasonable alternatives   Some of the common reasons   followed proper procedure. Where   and qualifications. Generally, the
        or injury. This is also known   have been considered and proven   include:                the employer is unsure as to   test for fair and objective criteria
        as ‘no fault dismissals’ as the   to be unsuccessful.       ■   Employee doesn’t know what    whether it is within its rights to   will be satisfied using the “last in
        employee is not to blame for such                             is expected because goals and/   dismiss a poor performer, advice   first out” (LIFO) principle. There
        a dismissal.                    An employer must ensure       or standards or workplace    from a reputable labour law expert   may be instances where the LIFO
                                      that there is a fair reason for                             should be obtained.
          When employees are no       the dismissal and that a fair     policies and consequences are                           principle or other criteria needs to
        longer able to carry out their   procedure has been followed     not clear (or have not been set)  4) Incapacity – Operational   be adapted.
        employment obligations due to   in implementing the dismissal,   ■   Interpersonal differences  Reasons                  If an employee either accepted
        the above, and alternative work   otherwise the dismissal may   ■   There is a mismatch between                         or unreasonably refused to
        arrangements are not feasible,   result in being substantially     an employee’s capabilities    Section 213 of the LRA defines   accept an offer of alternative
        they may be eligible for medical   unfair.                    and the job they are required to    operational requirements   employment, the employees
        boarding.                                                     undertake, or the employee    as follows: ‘“Operational   statutory right to severance pay
                                      1) Incapacity Hearing – Ill-    does not have the knowledge    Requirements” means
          An employer intending to    Health                          or skills to do the job expected    requirements based on the   is forfeited. Reasonableness is
        dismiss an employee due                                                                   economic, technological,      determined by a consideration of
        to incapacity must do so in     The above means that before     of them                   structural or similar needs of   the reasonableness of the offer of
        accordance with Item 10 and   the employer takes the decision   Employee does not know    an employer.’ The rationale   alternative employment and the
        11 of Schedule 8 to the Labour   to dismiss an employee due   whether they are doing a    behind operational requirements   reasonableness of the employee’s
        Relations Act, No 66 of 1995   to incapacity, such employer   good job because there is no   typically involves measures   refusal. In the first case, objective
        (LRA), failing which, the     must undertake an incapacity   counselling or feedback on their   adopted by the employer to   factors such as remuneration,
        fairness of such dismissal falls   enquiry aimed at assessing   performance               cut costs, improve profit, to   status and job security are
        to be challenged.             whether the employee is capable                             restructure its business, or alter   relevant. In the second case,
                                      of performing their duties, be   Was it the employee’s fault that   the way employees work to meet   the employee’s personal
        Employer duties prior to      it in the position they occupied   the performance standard was   an operational imperative.  circumstances play a greater role.
        dismissal                     before the enquiry or in any   not met?                      Dismissals for operational   UIF – Department of Labour
          Employers must:             suitable alternative position.   Dismissal will probably be   requirements have been       Employees can apply for benefits
        ■   Investigate the extent and cause    A conclusion as to the   adjudged to be unfair if the   categorised as ‘no fault’ dismissals.   at their nearest Department of
          of injury/incapacity/illness    employee’s capability or otherwise   reason for the poor performance   In other words, it is not the   Labour if they are an employed
          (nature and cause)          can only be reached once a proper   was that:               employee who is responsible for   contributor to the Unemployment
        ■   Establish the length of the    assessment of the employee’s   ■   Employer had failed to provide    the termination of employment.   Insurance Fund (UIF) and
          employee’s absence from work    condition has been made.    the employee with materials  Because retrenchment is a ‘no   have been terminated based
          – it is inappropriate to      In considering whether or not   ■   Required training had not    fault’ dismissal and because of   on Incapacity for any of these
                                                                                                  its human cost, the Act places
          dismiss an employee that is    to dismiss an employee due to     been given             particular obligations on an   reasons. 
                                                                                                  employer, most of which are
                                                                                                  directed toward ensuring that   Nikita@drg.co.za
                                                                                                  all possible alternatives to   T: +37 (0)31 767 0625
                                                                                                  dismissal are explored and that   W: www.drg.co.za
                                                                                                  the employees to be dismissed are
                                                                                                  treated fairly.

                                                                                                   The obligations placed on an
                                                                                                  employer are both procedural and
                                                                                                  substantive.
                                                                                                   The purpose of consultation is to
                                                                                                  permit the parties, in the form of
                                                                                                  a joint problem-solving exercise,   SCAN
                                                                                                  to strive for consensus if that is   QR CODE
                                                                                                  possible. The matters on which   TO SEE
                                                                                                  consultation is necessary are listed   VIDEO
                                                                                                  in s189(2). This section requires
                                                                                                  the parties to attempt to reach
                                                                                                  consensus on, amongst other    (Open the camera on your phone and
                                                                                                  things, appropriate measures   hover steadily for 2-3 seconds over the
                                                                                                                                 QR Code to see the video.)



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