Employers too often base appointment decisions on private agendas rather than employment policy. As a result, fairness to applicants suffers.
Although management prerogative exists, the law limits its reach. It must operate within principles of reasonableness and fairness. Therefore, management decisions must rest on proven facts. These facts must connect rationally to the final outcome.
Equality and fairness
When employers consider candidates for appointment, they must assess them on an equal and fair basis. For example, where an assessment process uses numerical scoring, the highest-scoring candidate should receive the appointment. Only a strong and objective reason can justify rejecting that score. In such cases, management prerogative cannot override accurate and properly applied assessment results.
The importance of this principle became clear in Booysen vs Beaufort West Municipality (Lex Info, 19 August 2025; Labour Appeal Court case number PA 15/24). In this matter, the Labour Appeal Court knocks down employer conduct that departed from fairness. Mr Booysen applied for the position of Director of Community Services with three other candidates. The selection panel awarded him the highest score.
One panellist, Mr Prince, served as an African National Congress (ANC) town councillor at the time. The municipality rejected all candidates and re-advertised the post. Subsequently, Mr Prince resigned as a councillor and applied for the same position. Mr Booysen also reapplied. Despite receiving the fourth-highest score, the municipality appointed Mr Prince.
Decision-makers must understand fairness obligations
The Labour Appeal Court strongly criticised this outcome. In its judgment, labour appeal court knocked down the employer’s decision-making that lacked rational justification. The court found the municipality’s refusal to appoint Booysen irrational. It ordered the municipality to appoint him to the post. In addition, it directed the municipality to pay his legal costs.
This judgment carries a clear warning for employers. Appointment decisions must align with objective assessment outcomes. They must also withstand legal scrutiny. Employers should therefore ensure that decision-makers understand fairness obligations.
Proper training on labour law and the limits of management prerogative is essential. Failure to do so exposes employers to costly and avoidable consequences.
Ivan Israelstam | Chief Executive | Labour Law Management Consulting | mail me |
