Dismissal: Banking Procedure

The recent Labour Appeal Court (LAC) ruling in Standard Bank of South Africa v South African Society of Bargaining Officials and Others (JA 107/22) [2025] ZALAC 10 (27 February 2025) centred around the dismissal of the employee, a Human Capital Consultant at Standard Bank, for alleged gross negligence and breaching internal housing policy procedures.

The employee began her employment in July 2017. In May 2018, she signed a Personal Record Update (PRU) that authorised a subsidised housing lease for Mr Johannes Taljaard, a senior Bank employee. Taljaard, however, had not followed the proper procedure—he signed the lease agreement incorrectly as the lessor rather than the lessee, and his Line Manager had not approved the transaction. This approval step was clearly required by the Bank’s Housing Policy.

The employee contended that she acted in good faith, assuming that Taljaard had obtained the necessary authorisations. She later attempted to cancel the lease but did so without informing her superiors. Following internal disciplinary proceedings, she was found guilty of misconduct and dismissed in August 2018.

Challenging her dismissal, the employee referred the dispute to the CCMA. The Commissioner held that while she had been negligent, the Bank’s Housing Policy was ambiguous about the duties of a Human Capital Consultant. Given her short tenure, lack of dishonesty, and evident remorse, the Commissioner ordered her reinstatement with three months’ back pay, which, on review, the Labour Court increased to five.

The Labour Court agreed that the Housing Policy was unclear regarding the employee’s responsibilities. It was accepted that her actions were not intentionally deceitful, and ruled that coaching or training would have sufficed as corrective measures. The employer’s review application was dismissed, and the Commissioner’s award upheld.

On appeal, the LAC found that the Housing Policy was not ambiguous and clearly placed the responsibility of authorising leases on the Line Manager.  It emphasised that the employee had caused financial loss to the Bank and amounted to a serious breach of her responsibilities. She had not fulfilled her duty to ensure adherence to the Bank’s policy and safeguard the financial resources of the Bank as her employer. In this regard the employee failed to act with the honesty, integrity, and fidelity required of employees in the financial services industry.

The LAC ultimately set aside the Labour Court’s ruling and reinstated the Bank’s original decision to dismiss the employee.

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