Author: Nicky Hardwick
On the 29th August 2025, the Labour Court confirmed the dismissal of an employee who had misused petty cash to buy chocolates for personal consumption. While the value involved was minimal, the Court emphasised that the true issue was the breach of trust. This judgment cements the long-standing principle in our law that trust is the cornerstone of the employment relationship.
What the Courts have said about trust and dishonesty:
- In Standard Bank SA Limited v CCMA and Others [1998] 6 BLLR 622 (LC), the Labour Appeal Court made it clear:
“It was one of the fundamentals of the employment relationship that the employer should be able to place trust in the employee… A breach of this trust in the form of conduct involving dishonesty is one that goes to the heart of the employment relationship and is destructive of it.” - In JDG (Pty) Ltd t/a Hi-Fi Corporation v Shear and Others (JR1014/18), the Court reinforced that even where losses are small, dishonesty fundamentally undermines the trust relationship and dismissal may be justified.
- In Kalik v Truworths (Gateway) and Others [2008] 1 BLLR (LC), the Court held that an employment relationship “…broken down as a result of an act of dishonesty can never be restored by whatever amount of mitigation. The underlying reason for this approach is that an employer cannot be expected to keep dishonest workers in his/her employ. The other reason for this is to send an unequivocal message to other employees that dishonesty will not be tolerated.”
- In SAPPI Novoboard (Pty) Ltd v Bolleurs (1998) 19 ILJ 784 (LAC) at para 7, the Court underlined the fiduciary duty of employees to act in good faith:
“It is an implied term of the contract of employment that the employee will act with good faith towards his employer and that he will serve his employer honestly and faithfully…. The relationship between employer and employee has been described as a confidential one. The duty which an employee owes his employer is a fiduciary one ‘which involves an obligation not to work against his master’s interests’… If an employee does ‘anything incompatible with the due or faithful discharge of his duty to his master, the latter has a right to dismiss him’….”
The latest 2025 petty cash case is not about the price of chocolates; it’s about whether an employer can continue to place trust in an employee who has been dishonest. South African jurisprudence makes it clear: once trust is broken, dismissal will often be the only appropriate sanction.
The recently gazetted Code of Good Practice on Dismissals (September 2025) reflects this same principle. It provides employers with more flexibility, particularly smaller businesses, but it also requires that dismissals are fair and defensible. Dishonesty is consistently recognised as conduct that undermines the employment relationship itself. No amount of mitigation or explanation can cure the breach of trust.
Key takeaway
Whether it’s a case of large-scale fraud or a few rands from petty cash, trust and integrity lie at the heart of the employment relationship.
Employers are entitled to act firmly where dishonesty occurs, and the courts have confirmed time and again that dismissal may be fair, even where the monetary value is small.
Lessons for employers
- Trust is central: Even minor acts of dishonesty can justify dismissal, because they destroy the foundation of the employment relationship.
- Process matters: Always follow fair procedure, even when the evidence of dishonesty appears obvious. A flawed process can still render the dismissal unfair.
- Consistency counts: Apply your disciplinary code consistently, so employees understand dishonesty will not be tolerated in any form.
- Document the breakdown: In every case, show how the act of misconduct damaged the trust relationship – this will be critical at the CCMA or Labour Court.
At HRTorque, we specialise in all employment relationship matters. Email us for more information.