Costly Negligence in the Workplace: A Landmark Judgment.
Costly Negligence in the Workplace: A Landmark Judgment.
Podcast
Costly Negligence in the Workplace: A Landmark Judgment.
Podcast
Thato explains that the dispute before the Labour Court involved two key issues. First, whether the dismissal of the former CEO and CFO of the National Health Laboratory Services (NHLS) was substantively and procedurally fair. Second, whether the NHLS could claim damages from the two executives for losses suffered as a result of their negligence. The court ultimately upheld the dismissal of both executives and further upheld NHLS' claim for damages. It is worth noting that the court ordered the executives to pay approximately R340 000.00 to the NHLS jointly and severally, and the former CEO was ordered to pay approximately R22 million to the NHLS.
Although the judgment has generated widespread debates about negligence in the workplace, Thato adds that the principle that an employer can claim damages for losses suffered as a result of an employee's negligence is not new in South African law and this was confirmed as far back as 2012 by the Labour Appeal Court in a case that CDH was also involved in.
The NHLS judgment serves as a timely reminder to employers to hire individuals who are skilled, competent, qualified, and experienced.
Click here to listen to the interview.
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