1. Why prompt, full payment is a legal duty
Section 32 of the Basic Conditions of Employment Act 75 of 1997 obliges every employer to pay remuneration in full and on the agreed date. Persistent failure to do so is not a mere breach of contract – it strikes at the heart of the employment relationship and can justify a constructive-dismissal claim.
2. The test for constructive dismissal
The Supreme Court of Appeal in Murray v Minister of Defence 2009 (3) SA 130 (SCA) confirmed the three-part inquiry:
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The employee resigned;
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continued employment was objectively intolerable; and
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the intolerability was caused by the employer’s conduct. saflii.org
3. Salary cases that meet the Murray test
| Case | What happened | Finding |
|---|---|---|
| Westcor SA (Pty) Ltd v Mey & Others (C189/2021) [2022] ZALCCT 61; (2023) 44 ILJ 397 | Employer imposed a 25 % unilateral pay cut during Covid-19 lockdown. | Labour Court held the reduction “rendered continued employment intolerable”; resignation = constructive dismissal. saflii.org |
| Aquarian Lifestyle Trading t/a Vespa SA v CCMA & Marnewick (JR 329/21) [2024] ZALCJHB 73 | Three-month short-payment following a lockdown lay-off; employer stonewalled queries. | CCMA award (upheld on review) granted outstanding salary + 10 months’ compensation. saflii.org |
| Horswill v Heli-Afrique CC (GAEK1374-23) [2023] ZACCMA 1 | Two months’ total non-payment; employee resigned. | CCMA found constructive dismissal and awarded compensation. saflii.org |
4. Legal and financial exposure once dismissal is proved
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Outstanding remuneration (BCEA s 73A or s 77).
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Compensation – up to 12 months’ salary for ordinary unfair dismissal (Labour Relations Act s 194(1)).
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Arbitration or Labour-Court costs and reputational damage.
5. Practical steps to stay compliant
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Cash-flow planning – build reserves and separate a dedicated payroll account.
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Transparent engagement – if a crisis looms, meet staff, share audited figures and explore alternatives (short-time, temporary lay-off, Section 189 retrenchment).
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Written agreements – any consensual reduction must be recorded and time-bound.
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Document everything – proof of all payments, TERS claims, and minutes of consultations.
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Legal sign-off before touching pay – even a partial cut without consent can trigger the Westcor precedent.
6. When trouble cannot be avoided
Call in professional help early. Delays amplify the “intolerability” element a commissioner will examine. The Vespa case shows that silence or stonewalling, even in genuine hardship, is fatal.
Need guidance?
Laboured South Africa’s specialist team can help you audit payroll risks, structure lawful alternatives, and defend CCMA disputes.
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Email: info@laboured.org.za
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WhatsApp: 082 330 3939
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Phone: 072 948 9160
Protect your business – and your people – by treating salary obligations as non-negotiable.
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