Earlier this month, the Labour Court handed down judgment in Nedbank Limited v Olwage & Others (JR 1525/22). The case revolved around a manager accused of sexual harassment and harassment toward a female colleague. The allegations included repeated comments about her appearance and, most notably, a remark telling her to “sit on his lap” — comments that the employee had made clear were unwanted.

Nedbank dismissed the manager after a disciplinary hearing. But when the case reached arbitration at the CCMA, the arbitrator sided with the dismissed employee, finding that his conduct did not amount to sexual harassment. The arbitrator criticised the complainant’s credibility and treated the manager’s conduct as mere “compliments.”

Nedbank took the matter on review. The Labour Court overturned the arbitration award, making it clear that the arbitrator’s reasoning ignored the Code of Good Practice on the Prevention and Elimination of Harassment in the Workplace and failed to apply a victim-centred approach. The Court emphasised that:

• Sexual harassment is not about intention, but about the impact on the victim.

• Walking away or expressing discomfort is enough to signal that conduct is unwanted.

• The test is whether the conduct was unwelcome and of a sexual nature, not whether it was meant “as a joke” or whether the complainant reported it immediately.

The Court concluded that the dismissal was substantively fair.

Why This Case Matters for Small Businesses and NPOs

At first glance, you might think: “That’s Nedbank. We’re just a small team — this will not happen at my business.”

But the truth is, harassment and sexual harassment claims can arise in any workplace, big or small. And when they do, the CCMA or Labour Court will look closely at two things:

• Did you have a clear Sexual Harassment Policy in place?

  • Employees must know what behaviour is unacceptable, in plain language.

  • There must be clear procedures for reporting, investigating, and acting on complaints.

• Did you follow a fair and transparent Disciplinary Process?

  • Written notice of hearings.

  • The right to representation, to call witnesses, and to cross-examine.

  • Impartial chairpersons and proper record-keeping.

Without these foundations, even a case of obvious misconduct can collapse, leaving your business or organisation exposed to reputational damage, reinstatement orders, or financial penalties.

The Role of Trust in the Workplace

At its core, the employment relationship rests on trust. The Labour Court has consistently found that dishonesty and harassment break that trust in a way that can justify dismissal. But a dismissal will only be upheld if it is both procedurally and substantively fair.

That’s where most businesses stumble — not in recognising misconduct, but in failing to handle it according to a fair procedure or policy

Protecting Your Organisation

The lesson from Nedbank is simple:

✅ Don’t wait until a complaint lands on your desk. Put clear, lawful policies in place now.
✅ Train staff so everyone understands what harassment is and how to report it.
✅ Ensure your disciplinary code aligns with the latest Code of Good Practice: Dismissal (2025).
✅ Keep proper records of every step in the process.

At Legal Assist Solutions, I provide small businesses and NPOs with:

• Customisable Sexual Harassment Policies — compliant with South African law and easy for you to adapt.

• Updated Disciplinary Codes & Toolkits — aligned with the new 2025 Code of Good Practice.

• Training and Policy Reviews — so your workplace culture supports compliance, dignity, and safety.

The Nedbank case is a reminder that even large, well-resourced employers face legal risks when workplace harassment arises. For small businesses and NPOs, the margin for error is even smaller.

The cost of not having policies in place is far greater than the cost of getting it right now.

📩 If you’d like me to draft or review your workplace policies, or to access ready-to-use templates such as the Sexual Harassment Policy or the Disciplinary Toolkit, have a look at my digital store or reach out at admin@legalassistsolutions.co.za.