A Labour Court sitting at the Western Cape High Court has overturned an arbitrator’s ruling and found that a former employee of a Gauteng-based debt-collection company was constructively dismissed after enduring what the court described as “intolerable working conditions.”
The ruling grants the employee more than R310,000 in compensation, marking a major victory in a case that tested employer obligations in remote-work arrangements, medical leave procedures, and workplace conduct.
The dispute dates back to the 2020 lockdown, when the employee requested permission to work remotely from Cape Town after her son was accepted into a prestigious school. The company approved the move, but disagreements later emerged about whether the relocation was permanent or temporary.
The employee argued the relocation was permanent, noting that the company assisted her with moving expenses by allocating R80,000 for transport, accommodation, uniforms, and school costs. She described the support as a clear sign of long-term approval. The employer insisted this was merely an advance on her bonus, not a relocation allowance, and that the arrangement remained subject to operational requirements.
By 2023, the company had lost major clients and was facing steep revenue declines. During an October meeting that year, executives signalled potential retrenchments and announced structural changes, including dissolving the exco and forming a new revenue committee—one the employee was excluded from.
The tension escalated in November 2023 when the company cancelled all remote work, insisting staff return to offices in Randburg and KwaZulu-Natal from 1 January 2024. The employee asked for an extension to March due to family circumstances, but the request was denied.
Around the same time, she provided a medical note explaining her ill health. Instead of processing the note according to company policy, her employer questioned the validity of her absence and warned of possible disciplinary action for alleged sick-leave abuse. In a letter to HR, the employee reported ongoing harassment, bullying, and degrading treatment from management dating back to October.
This combination of events pushed her to resign immediately on 30 November 2023, citing intolerable conditions amounting to constructive dismissal.
In his judgment, Judge Patrick MacKenzie held the employer responsible for creating an environment that made continued employment impossible.
The judge wrote:
“[The employer] knew the applicant was medically unwell, it was required to act within its own policies – to verify or record the absence appropriately. [She] disclosed her illness in good faith; the [employer] turned that disclosure into an accusation. Compassion was replaced with confrontation, converting a medical issue into a disciplinary dispute.”
The court found the employer’s actions—cancelling remote work without considering her circumstances, mishandling her medical leave, and contributing to workplace hostility—ultimately forced the employee to resign.
The compensation award of over R310,000 reflects the financial impact of the employer’s failures and reinforces the legal protections workers have when employment conditions become untenable.
