VARIATION AND RESCISSION OF ARBITRATION AWARDS AND RULINGS IN TERMS OF SECTION 144 OF THE LABOUR RELATIONS ACT

Abstract

Section 144 of the Labour Relations Act 66 of 1995 provides for the rescission and variation of arbitration awards. Two schools of thought have emerged from the Labour and Labour Appeal Court judgments dealing with rescission. This is to a large extent attributable to the similarity of the wording of section 144 and the wording of Rule 42(1) of the Uniform Rules of Court. The first view is that a wide meaning should be given to section 144. This approach requires a reasonable explanation and a bona fide defence on the merits of the matter. The second view is that a narrow interpretation should be applied and that a reasonable explanation and a bona fide defence are not relevant to applications for rescissions in terms of section 144(a). This approach requires that the application should be founded on one of the specific grounds stated in section 144(a) and on those grounds alone. Both approaches have advantages and disadvantages, but both the Labour and Labour Appeal Courts have indicated that the narrow approach would be the correct one to follow.