Employment Practices Liability

This policy covers an employer’s legal expenses and the awards made against it by the CCMA, Bargaining Councils and Labour Court for unfair labour practices such as unfair dismissal, sexual harassment, discrimination and failure to employ.

Question: What is the difference between Conciliation and Arbitration? (Con-Arb)
  • When a labour dispute is referred to the CCMA, the resolution process consists of two steps:
    • Conciliation – during this process the commissioner will try to get the employer and employee to agree on a settlement or resolution
    • Arbitration – if the conciliation process fails, then the matter is referred to arbitration. During this process the commissioner will hear both sides and will then make a ruling.
  • To save time, the arbitration process are sometimes done immediately after the conciliation process. This combined effort is known as Con-Arb.
  • Sometimes employers object to Con-Arb. This means that arbitration will occur several days after the conciliation, allowing the employer more time to prepare their case if no agreement is reached during conciliation.