In August 2025, the Labour Court delivered a judgment that sent ripples through the HR and business community: JDG (Pty) Ltd t/a Hi-Fi Corporation v Shear and Others. At first glance, it may seem trivial, a few rands spent on chocolates out of company petty cash. But the decision is a stark reminder that in the workplace, dishonesty is never a small matter.

What Happened?

A senior sales manager was given petty cash to purchase stationery for a store promotion. While at the shop, she also bought two chocolates for herself, using the same transaction. She submitted the receipt, which included the chocolates, but she never told her employer about the personal items or reimbursed the money.

When the company discovered this, she was charged with misuse of company funds and dishonesty. The sanction imposed: dismissal.

The Employee’s Defense

The employee argued that:

• She had no intention to hide the purchase because she handed in the till slip with the chocolates listed.

• The value was negligible and could not reasonably justify dismissal.

• Her clean disciplinary record should have weighed in her favour.

The CCMA’s Finding

The commissioner at the CCMA agreed with the employee. He found that while the purchase was inappropriate, dismissal was too harsh a sanction. He ordered her reinstated, reasoning that the amount was small, there was no cover-up, and progressive discipline could have corrected the behaviour.

The Labour Court’s Critique

The Labour Court strongly disagreed. In overturning the CCMA’s ruling, the Court emphasised:

• Dishonesty destroys trust — whether the amount is large or small is irrelevant. Once an employer can no longer trust an employee, especially in a senior role, the employment relationship is compromised.

• Position of trust matters — as a senior manager, she was expected to model ethical conduct, not undermine it.

• The commissioner erred — by focusing narrowly on the small value and clean record, the CCMA failed to consider the core issue: the breakdown of trust.

The Court reinstated the employer’s decision to dismiss, sending a clear message: even “minor” dishonesty may justify dismissal if it undermines confidence in the employment relationship.