COST ORDERS, ENFORCEMENT & COMPLIANCE WITH AWARDS

Written by Hulisani Ravhudzulo

For Employers and managers of Hairdressing, Cosmetology, Beauty and Skincare Industry establishments, receiving an arbitration award requires immediate attention. The award may direct compensation, reinstatement, payment of outstanding amounts, or another remedy. Its practical effect depends on what it orders and when compliance is required.

An award is generally final and binding. Employers should implement it within the required period or obtain prompt advice on a lawful challenge and any necessary suspension of enforcement. Ignoring an award can increase financial exposure and disrupt daily operations.

Understanding costs, enforcement and compliance helps employers close disputes responsibly and protect the establishment’s resources.

1. Understanding What the Award Requires

The first step is to read the operative order carefully. Identify the parties, amounts, payment dates, reinstatement arrangements, interest provisions, and any costs order. Check the date on which the award was served and retain proof of receipt.

Compensation, back pay, outstanding remuneration and litigation costs are different obligations. Payment of compensation does not necessarily discharge a separate costs order. Equally, an award requiring reinstatement cannot simply be replaced with a payment selected by the employer.

For example, an establishment instructed to reinstate a stylist should prepare to restore the employment relationship in accordance with the award. Any back-pay obligation must also be addressed.

Practical lesson: Convert every obligation in the award into a dated action and assign responsibility for completing it.

2. Cost Orders Are Discretionary

Under section 138(10) of the LRA and CCMA Rule 39, arbitration costs depend on law and fairness. Losing a dispute does not automatically mean paying the successful party’s expenses. An employer who succeeds should likewise avoid assuming that all representation fees will be recovered.

Relevant considerations include the parties’ success, fairness, settlement offers made with prejudice, unreasonable or vexatious conduct, and the effect on an ongoing employment relationship. Legal-fee recovery is subject to the applicable rules and limits; it does not necessarily cover the full account.

In the Labour Court, section 162 also requires consideration of law and fairness. In Zungu, the Constitutional Court confirmed that the ordinary approach of costs following the result does not apply automatically in labour matters.

Practical lesson: Assess the merits and likely expense of litigation before proceeding, rather than relying on an anticipated costs recovery.

3. Conduct That Can Increase Costs Exposure

Employers should approach dispute resolution with preparation and a willingness to engage. Unnecessary postponements, procedural non-compliance and pursuing or opposing proceedings without a proper basis can increase costs exposure.

A genuine disagreement about a dismissal should be supported by the evidence and applicable law. Repeating rejected arguments without addressing the award’s reasoning may increase expense without improving the prospects of success.

For a small establishment, managers’ time away from appointments and supervision can be significant even where no adverse costs order is made. Internal disruption and professional fees should therefore form part of the assessment.

Practical lesson: Keep complete records, meet procedural deadlines and instruct representatives on the actual issues requiring determination.

4. Enforcement of Monetary Awards

Where a CCMA monetary award remains unpaid, the successful party may apply for certification under section 143 using the prescribed process, including LRA Form 7.18. Where the award was made in arbitration under the auspices of a bargaining council, the applicable certification form is LRA Form 7.18A. Certification enables enforcement without first obtaining a separate Labour Court order making the award an order of court.

A certified monetary award is enforced as if it were an order of the Magistrate’s Court. The sheriff can execute against attachable property through the lawful execution process.

Enforcement may consequently affect business assets and operations.

The amount recoverable may include applicable interest and permitted enforcement costs. Section 143(2) generally provides for interest from the date of the award at the prescribed rate, unless the award provides otherwise.

Practical lesson: Confirm payment details early, pay the correct amount, and retain proof. Financial difficulty should prompt timely engagement rather than silence.

5. Reinstatement and Other Non-Monetary Awards

An award requiring an act other than payment, such as reinstatement, has a different enforcement route. Section 143 permits enforcement through contempt proceedings in the Labour Court. Contempt is not established merely because compliance is disputed; the applicable legal requirements must be proved.

Employers should take reinstatement instructions seriously. Confirm reporting arrangements, inform the responsible manager and prepare payroll and workplace access in accordance with the award. Record any tender of service and the employer’s response.

For example, turning a reinstated employee away while insisting that management disagrees with the outcome may create further litigation. Obtain advice immediately where the terms of implementation are unclear.

Practical lesson: Manage reinstatement as a concrete workplace obligation, with documented arrangements and clear communication.

6. Review Applications and Suspension of Enforcement

A review under section 145 is a challenge based on recognised review grounds, rather than an ordinary appeal allowing the entire dispute to be reheard. The usual deadline is six weeks from service of the award; late proceedings require condonation.

Filing a review does not, by itself, suspend the award. Section 145(7) provides for suspension through security furnished to the satisfaction of the Court. Unless the Labour Court directs otherwise, section 145(8) sets security at 24 months’ remuneration for reinstatement or re-employment, or the compensation awarded for a compensation order.

An employer needing a stay or different security arrangements should obtain appropriate legal assistance promptly. A rescission application under section 144 addresses specified grounds, such as an award erroneously made in a party’s absence; it is not interchangeable with review.

Practical lesson: Confirm both the challenge deadline and the legal position on enforcement before assuming that proceedings provide protection.

7. Bargaining Council Compliance and Settlement

Establishments in the Hairdressing, Cosmetology, Beauty and Skincare Industry should distinguish individual employment disputes from collective-agreement enforcement. Council proceedings may concern unpaid contributions or other obligations arising under an applicable agreement.

Section 51(8) applies relevant LRA provisions to bargaining-council arbitration, with necessary contextual changes. Employers should confirm the council’s applicable rules, prescribed forms and certification arrangements rather than assume every CCMA administrative step applies unchanged.

Where payment difficulties arise, a written arrangement may help resolve the matter. However, an employer cannot impose instalments or treat negotiations as suspending enforcement. Any agreement should clearly record amounts, dates and the agreed consequences for enforcement.

Practical lesson: Engage the relevant council or representative early and obtain a clear written record of any agreed arrangement.

8. Building a Reliable Compliance Process

A practical compliance process begins when the award arrives. Send it immediately to the person responsible for labour relations and record the service date, compliance obligations and any challenge deadlines in a central diary.

Check the award against payroll and employment records, obtain advice where necessary and authorise the required action. Keep proof of payment, correspondence, reinstatement arrangements and any court order affecting enforcement together in the dispute file.

Once the matter is resolved, review the workplace practice that caused the dispute. Better disciplinary records, accurate payroll information and fair procedures can reduce repeat disputes. EOHCB members should engage their labour consultant promptly for guidance within the organisation’s available services.

Practical lesson: Treat implementation as a management responsibility and verify that each obligation has actually been completed.

Dispute resolution continues beyond the arbitration hearing. Employers must understand the award, assess any costs exposure and act within the relevant deadlines.

Prompt compliance can prevent additional expense and unnecessary disruption. Where there are proper grounds for challenge, employers should pursue the correct procedure and address suspension of enforcement expressly.

For owners and managers of Hairdressing, Cosmetology, Beauty and Skincare Industry establishments, responsible dispute management means making informed decisions, keeping reliable records and ensuring that binding obligations receive the same attention as other essential business commitments.