What Happens When a Small Business Faces the CCMA? | Legal Assist Solutions

What Happens When a Small Business Faces the CCMA? | Legal Assist Solutions

When a small business finds itself facing the CCMA, the experience can be overwhelming. Employers walk in believing the facts are on their side, only to discover that labour law is technical, evidence-driven, and focused heavily on employee protection.

Intentions don’t matter.
Verbal agreements don’t matter.
A friendly, informal dismissal definitely doesn’t matter.

Small businesses often lose CCMA cases not because they are wrong, but because they are unprepared.

So, what actually happens when a matter is referred to the CCMA, and how can employers protect themselves long before that day comes?

1. The Moment a Case is Filed: What Employers Don’t Expect

A dispute begins when an employee refers a case to the CCMA. Soon after, the employer receives a Notice of Set Down. Many employers assume they will simply explain the situation and the commissioner will understand.

But the CCMA doesn’t work on assumptions. It works on procedure and evidence. If a dismissal (or even a suspension) is not procedurally and substantively fair, the employer is already on the back foot, even if there was a valid reason.

2. Why Small Businesses Often Lose: Even When They're Right

The most common reason small businesses lose is lack of paperwork and procedure.

  • No written warnings

  • No disciplinary policy

  • No signed employment contract

  • No record of misconduct

  • No formal hearing

  • No witness statements

  • No policy on sexual harassment or workplace conduct

Without documentation, the commissioner often has no choice but to accept the employee’s version.

As one CCMA award famously stated:

“An employer who fails to provide documentary evidence will struggle to prove fairness, regardless of verbal testimony.”

3. Common Mistakes That Cost Employers the Case

✔ Dismissing an employee verbally
✔ “Mutual agreement” without proof
✔ Letting emotions drive the decision
✔ No record of warnings or performance discussions
✔ Hiring or firing based on handshake agreements

The CCMA does not operate on memory, it operates on paper and procedure.

4. How the CCMA Views Fairness

The Labour Relations Act requires substantive fairness (valid reason) and procedural fairness (correct process).

You can have the best reason in the world, but if you skipped procedure, the CCMA may still rule against you.

Many employers are shocked when the commissioner issues:

  • Reinstatement

  • Back pay

  • Compensation of up to 12 months’ salary

One CCMA award even reinstated an employee dismissed for theft because the employer had no disciplinary policy, no hearing, and no written evidence.

5. The Real Cost of Losing

A single CCMA case can cost far more than a well-written policy:

  • Time away from running your business

  • Legal representation

  • Backpay

  • Compensation

  • Reputational damage

  • Emotional stress

Prevention is cheaper than litigation, every time.

6. 7 Practical Steps to Protect Your Business Before a Dispute Happens

✔ 1. Have a written employment contract for every staff member
Not verbal, not WhatsApp - a formal, signed contract.

✔ 2. Create a disciplinary code and procedure
It protects you AND your employees.

✔ 3. Implement a sexual harassment and workplace conduct policy
If harassment occurs and no policy exists, liability shifts to the employer.

✔ 4. Document everything
Warnings, performance issues, misconduct, absenteeism, grievances.

✔ 5. Train staff and management
Most CCMA losses come from poor handling - not bad intentions.

✔ 6. Conduct fair hearings
Even if the employee seems “obviously guilty.”

✔ 7. When in doubt - get guidance before acting
One phone call can prevent a CCMA case.

7. When to Get Professional Support

Small businesses rarely have internal HR departments, and that is exactly why they are vulnerable. Labour law is technical, and the CCMA is procedural. The best time to get help is before a dismissal, suspension, or complaint becomes a formal dispute.

If you need:

✔ Workplace policies
✔ Disciplinary codes
✔ Sexual harassment and conduct policies
✔ Staff and management training
✔ Guidance before taking action

You can contact us directly for support.

7. When to Get Professional Support

Small businesses rarely have internal HR departments, and that is exactly why they are vulnerable. Labour law is technical, and the CCMA is procedural. The best time to get help is before a dismissal, suspension, or complaint becomes a formal dispute.

If you need:

✔ Workplace policies
✔ Disciplinary codes
✔ Sexual harassment and conduct policies
✔ Staff and management training
✔ Guidance before taking action

If you’re not ready to hire a consultant, you can still protect your business, our online store offers affordable, ready-to-use policies, employment contracts and disciplinary toolkits. Visit: https://www.legalassistsolutions.co.za/legal-assist-store

You can contact us directly for support.

Contact Information

📩 Email: admin@legalassistsolutions.co.za
📞 Call / WhatsApp: 063 875 9658
🌐 Website: legalassistsolutions.co.za

Disclaimer

This article is for general educational purposes and does not constitute legal advice. Labour disputes are fact-specific, and employers should seek professional guidance before taking action. To receive tailored legal assistance or advice relating to your matter, please book a consultation.