Employees and employers alike often wrestle with the question of when a resignation becomes a “constructive dismissal” under South African labour law. This article answers four key questions: What is constructive dismissal under South African law? Must employees exhaust internal procedures before claiming constructive dismissal? What did the Constitutional Court decide in Maleka v Boyce? and how did the Labour Court apply these principles in Sally v CPES? By unpacking these recent decisions, the article explains the legal test for constructive dismissal, why the courts insist on using internal remedies, and what practical lessons both workers and businesses should draw from these cases.
Written by Roy Bregman,
an admitted attorney with over 51 years’ experience in labour and employment
law.
Key Takeaways
- Constructive dismissal claims will fail where
employees resign without first using reasonable internal remedies such as
grievance procedures or CCMA processes, unless those remedies would
clearly be futile.
- The Labour Court and Constitutional Court both
stress that the threshold for “intolerable” working conditions under
section 186(1)(e) of the LRA is high and assessed objectively, not based
on an employee’s perception.
- Recent cases involving Maleka and Sally underscore
that changes to reporting lines or disagreements about accommodation,
without more, seldom justify immediate resignation.
- Employers should maintain clear internal procedures
and employees should exhaust them before resigning, to avoid costly and
unsuccessful litigation.
Understanding Constructive Dismissal and Internal
Remedies
What is constructive dismissal
under South African Law?
Under section 186(1)(e) of the
Labour Relations Act (LRA), a constructive dismissal occurs where an employee
resigns because the employer has made continued employment intolerable. The
focus is not on whether the employee was unhappy, but whether a reasonable
person in the same circumstances would have found the situation so unbearable
that resignation was the only option.
Courts have consistently
emphasised that this test is objective and the threshold for intolerability is
high. Mere unhappiness, perceived loss of status, or conflict with management
will not be enough; the employee must show that the employer’s conduct was so
severe that no reasonable employee could be expected to stay.
Must employees exhaust internal
procedures before claiming constructive dismissal?”
The duty to use internal
procedures
A further key principle is that
constructive dismissal should be a remedy of last resort. Where reasonable
internal procedures exist – such as a grievance process, unfair labour practice
proceedings at the CCMA, or other dispute mechanisms – employees are generally
required to use them before resigning.
Both the Labour Court and higher
courts have indicated that, save in cases where internal remedies would be
objectively futile, an employee who resigns prematurely and bypasses available
procedures will struggle to prove constructive dismissal. This approach
protects both the employer’s right to address issues internally and the broader
statutory scheme that favours problem‑solving over litigation.
Against this backdrop, two recent
cases – one from the Constitutional Court and one from the Labour Court –
reinforce the importance of exhausting internal avenues before walking away.
The Maleka Case: Reporting-Line Changes and Anticipated
Intolerability
What did the Constitutional Court
decide in Maleka v Boyce?
Facts of the case
In Reynolds Maleka v
Timothy Boyce N.O and Others (CCT 175/23) ZACC 4, Mr Maleka had been
employed since 2014 as IT Director by Tyco, and was placed at ADT, Tyco’s South
African subsidiary. He served on ADT’s executive committee, reporting
internationally to Tyco’s global head of IT and locally to ADT’s managing
director.
In late 2016, ahead of a planned
acquisition of ADT by Fidelity Security Group, ADT announced the appointment of
a new financial director, Mr Quinn, who would oversee the IT portfolio. Once
the acquisition was completed, this would mean that Maleka would report to
Quinn, someone on his own level. Maleka saw this as a demotion which threatened
his authority and status and immediately expressed his opposition. He was told
the decision was final.
Shortly after the Competition
Commission approved the acquisition, Maleka had a brief follow‑up meeting with
the managing director, who reiterated that the reporting line decision would
stand. The next day, Maleka resigned and later referred a dispute to the CCMA,
alleging that he had been constructively dismissed.
Decisions in the CCMA, Labour
Court and Labour Appeal Court
The CCMA Commissioner rejected
Maleka’s constructive dismissal claim. The Commissioner found that the change
in reporting line did not affect his title, salary, responsibilities or his
seat on the executive committee and was a reasonable operational response to
the pending sale. Crucially, Maleka had not used ADT’s grievance procedure
before resigning.
The Labour Court, applying the
test of correctness to the Commissioner’s ruling, agreed. It held that without
a compelling reason to bypass the grievance process, his failure to use it was
fatal to the constructive dismissal claim. The Court further held that the
reporting‑line change, in the absence of any change to salary or title, did not
render his employment objectively intolerable; his resignation was impulsive
and not a last resort.
On appeal, the Labour Appeal
Court (LAC) similarly held that Maleka’s resignation was premature. The LAC
noted that he could have:
- used ADT’s internal grievance procedure, and/or
- referred unfair labour practice or unfair
discrimination disputes to the CCMA before resigning.
His failure to pursue these
options meant that intolerability had not yet materialised; it was at most
anticipated. The LAC therefore dismissed his appeal.
Constitutional Court majority:
high threshold and need to explore remedies
The Constitutional Court’s
majority judgment, penned by Seegobin AJ, confirmed these principles. Drawing
on established authority, the Court reiterated that constructive dismissal
requires proof that the employer made continued employment objectively intolerable
and that the threshold for intolerability is high.
The majority held that Maleka’s
dissatisfaction stemmed from the change in reporting line, not from any
existing state of intolerability. His fears about future marginalisation
amounted to anticipated intolerability, which is not sufficient under section
186(1)(e). The Court also stressed that an employee in his position should
first explore reasonable alternative remedies before resigning. Because Maleka
had not done so and could not show that internal or external remedies would
have been futile, his application had no prospects of success and was
dismissed.
A strong dissent would have found
constructive dismissal on the particular facts, emphasising dignity and the
historical context of racial inequality in corporate South Africa. However, for
current purposes, the binding majority confirms a strict, remedy‑focused
approach.
The Sally Case: Religious Accommodation and the Labour
Court’s Approach
How did the Labour Court apply
these principles in Sally v CPES?”
Facts and claim
In Sally v CPES (Pty) Ltd
t/a Vivo SA (JS419/22) ZALCJHB, Mr Mohamed Sally, a practising Muslim, was
employed as a spare parts manager from 7 March 2022. On 10 March, he requested
religious accommodation to attend Friday prayers, including the option of
unpaid leave. Before CPES could meaningfully respond or implement any solution,
Sally resigned the very next day, alleging that his resignation amounted to an
automatically unfair constructive dismissal based on religious discrimination.
Labour Court’s decision
The Labour Court dismissed the
claim and again underlined the importance of using internal procedures and
allowing the employer an opportunity to respond. The Court noted that Sally:
- had not given CPES reasonable time to consider and
implement his proposed unpaid‑leave solution; and
- had not exhausted available internal remedies
before resigning.
The Court cautioned that
constructive dismissal should not be found where an employee fails to use
reasonably available internal processes to address their grievance, unless
using those processes would objectively be futile. On these facts, CPES had
barely been given 24 hours to respond. The situation had not yet become
objectively intolerable; instead, resignation was premature.
Conclusion: Practical Lessons for Employers and
Employees
The Maleka and Sally decisions
deliver a consistent message: constructive dismissal is an exceptional remedy,
not a shortcut when employment relationships strain. Employees must:
- distinguish between genuine intolerability and
anticipated or perceived harm.
- use internal grievance procedures and statutory
remedies where reasonably available; and
- treat resignation as a last resort, only after
attempts to resolve the situation have failed or would clearly be futile.
For employers, the cases
highlight the value of clear internal policies, accessible grievance
mechanisms, and prompt, good‑faith engagement with employees’ concerns –
especially around restructurings, reporting‑line changes and religious
accommodation.
FAQ
Q1: When will a South African
court find that an employee was constructively dismissed?
A: Only when the employer has
made continued employment objectively intolerable, and resignation was a last
resort after reasonable alternatives, including internal procedures, have been
tried or shown to be futile.
Q2: Do I have to use my
employer’s grievance procedure before resigning?
A: In almost all cases, yes.
Failing to use an available grievance process or CCMA remedies will usually be
fatal to a constructive dismissal claim, unless using them would clearly be
pointless.
Q3: Is a change in reporting
line automatically a demotion or constructive dismissal?
A: No. Courts look at the full
picture, including title, pay, responsibilities and context. A change in
reporting line alone, without more, rarely makes employment intolerable.
Q4: Can refusal or delay in
granting religious accommodation amount to constructive dismissal?
A: Not automatically. The
employer must be given a reasonable opportunity to consider the request and
explore solutions; immediate resignation without engaging internal processes
will usually defeat a claim.
If you are facing changes
at work, considering resignation, or dealing with an employee who alleges
constructive dismissal, it is crucial to get tailored legal advice before
taking the next step. Contact Bregman
Moodley Attorneys for practical, strategic guidance on South
African labour law, internal procedures and constructive dismissal risks.


