What Happens After a CCMA Arbitration Hearing?

After a CCMA (Commission for Conciliation, Mediation and Arbitration) arbitration hearing concludes, the immediate and crucial next step involves the issuance of a formal decision by the commissioner. This decision, known as an arbitration award, is the legally binding outcome of the dispute.

The Arbitration Award: The Immediate Outcome

At the culmination of a CCMA arbitration hearing, the presiding commissioner issues a written decision. This arbitration award is the definitive ruling on the dispute and holds significant legal weight.

Here's what you need to know about the award:

• Final and Legally Binding: The award is considered final and legally binding on both the employer and the employee involved in the dispute. This means both parties are obliged to comply with its terms.
• Written Document: The decision is always provided in a written format, detailing the commissioner's findings, reasons for the decision, and the specific relief granted (e.g., reinstatement, compensation, specific performance).
• Delivery Timeframe: The CCMA is mandated to send the arbitration award to the parties involved within 14 days of the finalization of the arbitration process. This ensures a relatively swift conclusion to the formal proceedings.

Next Steps Following an Arbitration Award

Once an arbitration award is issued, parties must consider their next course of action based on whether they are the successful party, the unsuccessful party, or if they dispute the award's validity.

Compliance with the Award

The primary expectation following an arbitration award is that the parties will comply with its terms.

• For the Winning Party: If the award is in your favour, you expect the other party to adhere to the terms within the stipulated timeframe. This might involve:
  • Payment of compensation or damages.
  • Reinstatement of employment.
  • Re-employment in a specified position.
  • Issuing of a certificate of service.
• For the Losing Party: You are legally obliged to implement the award's instructions. Failure to do so can lead to serious consequences.

Non-Compliance and Enforcement

If the losing party fails to comply with the arbitration award, the winning party has legal avenues available to enforce the award. This process typically involves the Labour Court.

1. Certification of the Award: The successful party can apply to the CCMA to have the arbitration award certified. Once certified, the award effectively becomes an order of the Labour Court.
2. Labour Court Enforcement: With a certified award, the winning party can then approach the Labour Court to request a warrant of execution. This warrant empowers the Sheriff of the Court to attach the assets of the non-complying party to satisfy the terms of the award (e.g., seize property to be sold to cover monetary compensation).
3. Contempt of Court: In extreme cases of willful non-compliance, further legal action, including contempt of court proceedings, might be pursued.

For more information on the enforcement process, you can refer to resources on South African Labour Law or the official CCMA website.

Reviewing the Arbitration Award

A party who believes that the arbitration award is flawed and should not stand can apply to the Labour Court for a review of the award. It's crucial to understand that a review is not an appeal.

• Grounds for Review: An award can only be reviewed on specific, limited grounds, typically related to a defect in the arbitration process itself, rather than merely disagreeing with the outcome. Common grounds include:
  • Gross irregularity in the conduct of the arbitration proceedings.
  • The commissioner exceeding their powers.
  • The award being obtained by improper means.
  • The commissioner committing a material error of law that led to a decision no reasonable commissioner could have reached.
• Process: An application for review must be made to the Labour Court within six weeks of the date the award was served on the party, unless the award deals with unfair dismissal relating to probation, in which case the period is 10 days.
• Outcome of Review: If a review application is successful, the Labour Court may set aside the award and refer the matter back to the CCMA for a new hearing (often before a different commissioner), or in rare cases, substitute the award.

For detailed information on the rules and procedures for review applications, refer to the Labour Court Rules.

Potential Settlement (Post-Award)

Even after an award is issued, parties can still negotiate and reach a settlement agreement. This might occur if the losing party wishes to avoid enforcement proceedings or a review application, or if the parties find a mutually agreeable solution outside the award's terms.

Key Considerations for Parties

• Understand the Award: Carefully read and understand the terms of the arbitration award upon receipt.
• Seek Legal Advice: If you are unsure about your rights, obligations, or the process for compliance, enforcement, or review, it is advisable to seek legal counsel from a labour law expert.
• Adhere to Timeframes: Strict timeframes apply for various post-award actions, particularly for review applications. Missing these deadlines can result in the loss of your right to challenge or enforce the award.