{"id":40687,"date":"2026-11-01T12:45:22","date_gmt":"2026-11-01T12:45:22","guid":{"rendered":"https:\/\/wedodis.co.za\/news\/?p=40687"},"modified":"2026-11-01T12:45:22","modified_gmt":"2026-11-01T12:45:22","slug":"labour-court-judge-slams-ccma-decision-as-a-flawed-legal-misstep-in-sa-post-office-case","status":"publish","type":"post","link":"https:\/\/wedodis.co.za\/news\/labour-court-judge-slams-ccma-decision-as-a-flawed-legal-misstep-in-sa-post-office-case\/","title":{"rendered":"Labour Court Judge Slams CCMA Decision as a Flawed Legal Misstep in SA Post Office Case"},"content":{"rendered":"
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The unfair dismissal claims made by former employees of the South African Post Office (SAPO) have been suspended due to the discovery that a ruling from the Commission for Conciliation, Mediation & Arbitration (CCMA) was based on fabricated legal precedents.<\/p>\n

The CCMA, an independent body in South Africa, aims to resolve conflicts between employers and employees effectively and reasonably, thus minimizing the need for costly court proceedings.<\/p>\n

On 23 October, Acting Labour Court Judge Sean Snyman criticized CCMA Commissioner Menzi Fakude for allegedly relying on AI-generated content to rule against SAPO.<\/p>\n

This incident illustrates what Snyman referred to as the \u201cscourge\u201d of artificial intelligence insidiously entering the South African legal framework as large language model chatbots become more widely utilized.<\/p>\n

The case involved six former employees who were dismissed on 2 December 2025 for alleged misconduct and who sought to have their jobs reinstated along with back pay through the CCMA.<\/p>\n

In representing the dismissed employees, Commissioner Fakude faced the challenge of circumventing a legal moratorium on unfair dismissal claims against SAPO, as stipulated by South Africa\u2019s Companies Act.<\/p>\n

Under this legislation, once a company enters business rescue, no unfair dismissal actions can be initiated unless permitted by the High Court or agreed upon by the company\u2019s business rescue practitioners.<\/p>\n

SAPO entered business rescue in 2023, two years prior to the dismissals. Despite the entity’s application to exit business rescue, that request remains under consideration.<\/p>\n

To advance the claim for the employees, Fakude employed various legal arguments to contest the business rescue moratorium and initiate arbitration regarding their dismissals.<\/p>\n

He referenced a case purportedly titled \u201cSouth African Post Office SOC Ltd (In Business Rescue) and Others v Communication Workers Union and Others [2023] ZACC 40\u201d as a foundation for his reasoning.<\/p>\n

By citing this supposed judgment, he concluded that \u201cbusiness rescue does not suspend the operation of labour legislation or deprive employees of access to the statutory dispute-resolution mechanisms.\u201d<\/p>\n

However, SAPO contended that this judgment did not exist, a point underscored in its legal submission to the Labour Court.<\/p>\n

\u201cAn untenable state of affairs and a complete failure\u201d<\/h2>\n

\"Labour
The Commission for Conciliation, Mediation and Arbitration (CCMA) in Cape Town. By: Ashraf Hendricks\/GroundUp<\/a>, CC BY-ND 4.0<\/a>. [March 2018]<\/figcaption><\/figure>Judge Snyman stated that upon conducting his own investigation, he failed to locate the cited case referenced by the CCMA Commissioner.<\/p>\n

\u201cIn fact, the citation of \u20182023 ZACC 40\u2019 belongs to a judgment of the Constitutional Court in Rayment and Others v Minister of Home Affairs and Others<\/em>,\u201d said Snyman.<\/p>\n

\u201cThe case has nothing to do with business rescue and the rights of employees under the LRA with reference thereto. The judgment concerned the Immigration Act.\u201d<\/p>\n

Snyman recounted searching the entire SAFLII database for the case law purportedly cited by the CCMA. Although he found related rulings, all were from before SAPO entered business rescue.<\/p>\n

\u201cIt appears that Commissioner Fakude must have relied on AI in seeking to find substantiation for his reasoning,\u201d Snyman stated.<\/p>\n

\u201cThat AI, based on the instructions provided, would then come up with the reasoning and reference to the authority then directly relied on by him.\u201d<\/p>\n

Snyman further criticized Fakude, the first respondent in SAPO\u2019s legal application, remarking that he clearly failed to verify whether the cited case was \u201ceven remotely correct.\u201d<\/p>\n

\u201cThis is an untenable state of affairs and a complete failure on the part of the first respondent to lawfully and with the expected diligence and responsibility, discharge his duties as an arbitrator,\u201d Snyman declared.<\/p>\n

CCMA restrained from proceeding with arbitration against Post Office<\/h2>\n
\"Labour
Post Office in Calvinia, Northern Cape<\/figcaption><\/figure>\n

AI language models are susceptible to generating false information that may seem quite credible, a phenomenon known as AI hallucination.<\/p>\n

A global database<\/a> on court cases involving AI hallucination, compiled by legal scholar Damien Charlotin, indicates that six such instances have occurred in South Africa.<\/p>\n

The initial domestic incident<\/a>, which transpired in the Johannesburg Regional Magistrate\u2019s Court in 2023, resulted in leniency for the involved attorneys.<\/p>\n

Due to the limited understanding of large language models at that time, the Court utilized the situation to caution legal practitioners in South Africa.<\/p>\n

Subsequent cases were met with more stringent responses, leading to offenders being reported to the Legal Practice Council for potential disciplinary measures.<\/p>\n

In the recent ruling by the Labour Court, Snyman referred to UK legal standards regarding practitioners’ obligation to verify data when utilizing AI for legal research.<\/p>\n

\u201cThe [AI] responses may make confident assertions that are simply untrue. They may cite sources that do not exist,\u201d Snyman quoted from a judgment in the UK.<\/p>\n

\u201cThose who use artificial intelligence to conduct legal research, notwithstanding these risks, have a professional duty to check the accuracy of such research by reference to authoritative sources.\u201d<\/p>\n

The Labour Court has issued an injunction, preventing the CCMA and Fakude from continuing with the arbitration related to this dispute.<\/p>\n

\u201cThe arbitration proceedings under CCMA case number FSWK 2876-25, scheduled for 15 October 2026, are stayed,\u201d Snyman ruled.<\/p>\n

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Article thumbnail: Labour Court of South Africa. Photographed by Ashraf Hendricks\/GroundUp<\/a>.<\/em><\/p>\n

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