The Labour Court has ruled that the dismissal of 151 community health workers in Tshwane under the EPWP was both procedurally and substantively unfair. However, instead of reinstating them, the court awarded compensation, citing practical constraints and key principles of labour law.
The case, heard on 30 August 2024 and finalised on 10 June 2025, examined whether the workers, initially hired on fixed-term contracts, had transitioned into permanent employment through continued service. The arbitrator ruled that because they continued working after contract expirations, they should have been classified as permanent employees rather than being dismissed due to the effluxion of time.
Fixed-term contracts vs permanent employment
Although the workers were initially contracted under fixed-term arrangements, administrative lapses led to their continued employment without formal renewals. According to Judge R Lagrange, the failure to issue new contracts transformed their employment status, underscoring concerns about how municipalities manage transitions between temporary and ongoing employment relationships.
The court found that the workers were dismissed without valid reasons or proper procedure, violating municipal labour rights protected under South African labour law. Despite their continued employment beyond contractual expiration dates, they were abruptly terminated without due process.
Compensation over reinstatement
The arbitrator awarded each worker R10 000, equivalent to four months' wages, after ruling reinstatement impractical. Judge Lagrange upheld this compensation but criticised procedural mismanagement, noting that the municipality had effectively reclassified the workers as permanent staff by allowing them to work beyond contract expirations.
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