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DIRECTORS MAY FACE POSSIBLE JAIL TIME

Johan van Deventer, violations, and even settlements. the award. When the award is Simply put, a respondent is in clarity on specific require-
KZN Regional This contempt can lead to severe certified by the Director of the contempt where the respondent ments and ensure that
Manager, LabourNet legal consequences, including CCMA, the Sheriff is tasked to knows and understands the employers follow all
fines, imprisonment, and execute in terms thereof. Section terms of the order and what is procedures correctly.
he the inevitable damage to the 143(1) of the Labour Relations required to be done to comply ■ Mitigate Risks:
purpose employer’s reputation. Act states that if a party with the order, but then without Early advice can help
Tbehind In the recent case then fails to comply with an any cause or justification employers address potential
contempt of Raubenheimer v Commission arbitration award or the order of deliberately does not comply. issues before they escalate into
proceedings For Conciliation Mediation and the performance of an act, other contempt charges, safe-
is to secure Arbitration and Others (J424/24) than the payment of an amount The Court went on to reaffirm guarding both the company’s
compliance [2024] ZALCJHB 340 handed of money, any other party to the in Raubenheimer that a review reputation and its financial
with court down on 21 August 2024, award may enforce it by way of application alone does not standing.
orders. the Labour Court found the contempt proceedings instituted suspend the enforcement ■ Avoid Severe Penalties:
Contempt company (and its directors) in the Labour Court. of an arbitration award and
of court occurs when an guilty of contempt of court for The Court in Raubenheimer without compliance to sections Understanding the legal
implications of labour
individual or entity wilfully their non-adherence to a CCMA referenced Snyman AJ’s direction 145(7) and (8) an award court rulings and responding
disobeys or shows disrespect award and ordered them to in South African Municipal remains enforceable. It was in appropriately can prevent
to a court’s order, disrupting effect the payment and actions Workers Union and Others v these circumstances that the
the administration of of the contested arbitration Thaba Chweu Local Municipality employers were found to be in costly fines or even possible
jail time for business
justice. This played out quite award, or failing to do so, that and Another [2015] JOL 32840 contempt of court. leaders. 
famously in Secretary, Judicial the directors of the company be (LC) outlying what proof is By seeking timely labour law
Commission of Inquiry into sentenced to a period of 30 days required (beyond reasonable advice, employers can:
Allegations of State Capture v imprisonment each. doubt) to prove contempt: For more information or assistance with
Zuma and Others 2021 (5) SA ■ Ensure Compliance: the above-mentioned topic, please feel free
327 (CC) which made history So, what leads to such an (1) there was a refusal to comply Labour law professionals will to contact us.
in finding a former President occurrence? with the Order; help employers understand T: +27 (0)31 266 6570
of the Republic of South Africa Where an employer has failed (2) this refusal was wilful and fulfil their obligations C: +27 (0)82 786 7480
in contempt of court and to comply with an award issued (deliberate); and under court orders, reducing E: johanvd@labournet.com
sentencing him to a period of by the CCMA or a Bargaining (3) the deliberate refusal to the risk of unintentional non- W: www.labournet.com
incarceration. In labour law, Council, the employee may comply must be mala fide, compliance.
contempt of labour court refers either approach the CCMA in other words, there must be ■ Navigate Complex Laws:
to an employer’s failure to or the Bargaining Council a complete absence of any Labour laws and court orders
comply with court orders related (whichever has jurisdiction) kind of bona fide justification can be intricate. Your Labour
to employment disputes, labour and apply for the certification of for the refusal to comply. Law consultant can provide

SOUTH AFRICA NEEDS TO TURN THE TIDE ON FRAUD

Sameer Kumandan, director of SearchWorks, an phishing attacks cost South Survey, procurement fraud ranks proactive stance against fraud
Managing Director, innovative data platform that Africans an estimated R200 among the top three economic is vital if South Africa wants to
SearchWorks allows users to conduct live, million, a 50% increase from the crimes globally, with gaps in fraud improve its economic position.
accurate searches on individuals previous year. detection systems leaving South To achieve this, Kumandan says
S ystemic and companies and in-depth KYC including SASSA and Home vulnerable. Fraud involving public it is necessary to strengthen
African businesses particularly
Fraud within public institutions,
good governance practices.
checks online.
institutions further complicates
“Having access to complete
vulnerabilities, A Nation at Risk Affairs, also highlight South the picture. “Implementing and accurate information on
Africa’s vulnerability to fraud and
appropriate checks and accurately
cybercrime South Africa’s high fraud risk cybercrime. Kumandan says the verifying government suppliers businesses and individuals, and
and social reflects the country’s adoption ongoing investigation into R370 and employees can help regulate the ability to verify credentials
engineering of digital technologies alongside SRD grant fraud and the exposure processes and streamline enables better, more transparent
add to clear gaps in combatting growing of identity theft at Home Affairs decision-making, which in
pressures on digital fraud. According to a reveal underlying systemic issues operations to deliver much-needed turn can create greater trust
critical services,” says Kumandan.
between organisations and their
institutions, recent analysis by TransUnion, and weaknesses that make it stakeholders. Preventing and
businesses and the economy. 4.9% of digital transactions were possible for fraudsters to operate Counting the Cost of Fraud
flagged as suspicious in the first undetected. mitigating irregularities, fraud
Fraud in South Africa is on the half of 2024. Telecommunications The Council for Scientific and corruption can through
rise with no signs of slowing. (8.0%), financial services (5.5%), Factors Driving Fraud in 2024 and Industrial Research due diligence at all levels
Amid an uptick in digital and online communities (5.1%) “Trending fraud types like (CSIR) estimates the impact of within organisations and public
transformation across multiple are among the hardest hit as payment and procurement cybercrime on the South African institutions.”
sectors, cybercrime coupled with South Africa had the eighth economy to be at R2.2 billion “By leveraging cutting-edge
sophisticated social engineering highest rate of suspected digital fraud, identity theft, and social per annum, with the country technologies and conducting
engineering scams are often
techniques are laying bare fraud in the first half of 2024 driven by a combination of described as a ‘very attractive’ thorough background checks,
systemic vulnerabilities in public out of the 19 countries where cunning tactics by fraudsters testbed for cybercriminals. companies can protect their
institutions and businesses alike. TransUnion provided regional and existing weaknesses within The repercussions of fraud operations and ensure that
In 2024, South Africa remained a breakdowns. organisations. Legacy systems extend far beyond financial fraudsters are kept at bay.
global hotspot for fraud, ranking within organisations, human losses, potential legal penalties SearchWorks provides the tools
among the top five countries for Identity fraud also spiked with error, as well as a lack of tools and damaged brand reputations. that organisations need to
cybercrime density. synthetic identity scams (where or processes to identify fraud “The consequences of inaction conduct these checks, ensuring
personal data is manipulated against fraud have an impact on
“South Africa faces a perfect to create false identities), which quickly create a cascade of the immediate victims as well compliance with relevant laws
storm of fraud challenges that increased by an alarming 153% challenges. Added to this as the broader economy. Overall and mitigating risk,”
impact the entire breadth of the in just one year, according to are the advanced tools cyber trust in organisations and he adds. 
economy. From digital identity TransUnion. In addition, the attackers use, including AI- public institutions is a critical
scams that affect consumers persistence of social engineering generated deepfakes to create ingredient in the functioning of T: +27 (0)86 034 0000
to complex procurement fraud scams, including phishing, convincing fake identities or a healthy society. The stakes are E: info@searchworks.co.za
that places organisations at vishing, and SIM swap scams, bypass security measures,” simply too high to ignore,” adds W: www.searchworks.co.za
risk, businesses need to adopt has also contributed to the explains Kumandan. Kumandan.
proactive strategies to mitigate country’s fraud crisis. In 2023 Procurement fraud remains
financial and reputational damage alone, the South African a pressing concern for Turning the Tide Through
as a matter of urgency,” notes Banking Risk Information organisations. According to the Proactive Prevention
Sameer Kumandan, managing Centre (SABRIC) reported that PwC Global Economic Crime At a broader level, taking a

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