The embattled Gauteng Growth and Development Agency (GGDA) has been dealt another blow, with the Labour Court ordering it to pay a former senior executive more than R2.6-million for unfair dismissal.
Although acting Judge Coen de Kock ordered the GGDA to pay former group chief operations officer Jameel Chand R2,658,701.64 within 15 days from July 20, it is not clear whether the agency will appeal.
The amount represents 12 months of Chand’s remuneration after the court found that his dismissal was procedurally and substantively unfair. Chand had worked for the GGDA and its predecessor, Blue IQ Investment Holdings, from 2006.
He occupied several senior positions, including stints as acting CEO, before becoming group chief operations officer under a five-year contract from January 2019.
His contract expired on December 31, 2023. The dispute erupted after then board chairperson, Dr Sibongile Vilakazi, told Chand in November 2023 that she had instructed that contracts of senior managers be renewed unless performance concerns existed.
She later confirmed this in an email copied to the executive responsible for human resources. Chand subsequently asked human resources to implement the instruction but received no response.
When he returned from leave in January 2024, he discovered that he no longer had access to GGDA systems or his office.
Chand approached the Commission for Conciliation, Mediation and Arbitration, arguing that he reasonably expected his contract to continue. The CCMA agreed and initially ordered GGDA to reinstate him on a fresh five-year contract.
GGDA challenged that ruling in the Labour Court. De Kock found Chand had a reasonable expectation of continued employment but said the CCMA went too far by effectively granting him another five-year contract.
The judge found Chand could reasonably expect only an extension while GGDA completed a proper recruitment process. That expectation was strengthened by the agency’s previous conduct.
Chand’s contracts had been extended in 2013 and 2018 while recruitment processes were finalised. He then competed for the position and secured fresh terms. The court said individual board members could not themselves appoint managers or renew contracts without lawful authority.
“A board of directors acts by resolution,” De Kock said.
However, GGDA could not escape responsibility after allowing the chairperson’s instruction to remain uncorrected while Chand acted on it.
The judge warned public entities that where such instructions were left standing, they could face consequences for unfair dismissal.
“Legality is preserved; accountability falls where the failure lay,” De Kock said.
The court replaced the CCMA remedy with compensation of R2,658,701.64, equivalent to 12 months of Chand’s R221,558.47 monthly remuneration. It ordered payment within 15 days and made no costs order.
Sunday World approached GGDA for comment, but the agency did not respond by the time of publication.
GGDA said it was reviewing the Labour Court judgment with its legal counsel and would respond within the prescribed timeframe. The agency did not, however, indicate whether the R2.65-million had been paid or whether it intended to appeal.
- The Labour Court ordered the Gauteng Growth and Development Agency (GGDA) to pay former group chief operations officer Jameel Chand R2,658,701.64 for unfair dismissal.
- The amount represents 12 months of Chand’s remuneration, at R221,558.47 per month, and must be paid within 15 days from July 20.
- The court found Chand’s dismissal procedurally and substantively unfair, as he had a reasonable expectation of contract extension based on previous GGDA practices.
- Chad's contract expired on December 31, 2023, but despite instruction from the board chairperson to renew senior managers’ contracts unless there were performance concerns, his was not renewed, leading to the dispute.
- GGDA is reviewing the Labour Court judgment with legal counsel and has not yet indicated whether it will pay the compensation or appeal the decision.
He occupied several senior positions, including stints as acting CEO, before becoming group chief operations officer under a five-year contract from January 2019.
His contract expired on
When he returned from leave in January 2024, he discovered that he no longer had access to GGDA systems or his office.
GGDA challenged that ruling in the Labour Court. De Kock found
“A board of directors acts by resolution,” De Kock said.
However, GGDA could not escape responsibility after allowing the chairperson’s instruction to remain uncorrected while
“Legality is preserved; accountability falls where the failure lay,” De Kock said.
GGDA said it was reviewing the Labour Court judgment with its legal counsel and would respond within the prescribed timeframe.
