What is a default award?

  • If one party to the dispute fails to present its arguments, it is common practice to nonetheless proceed with the hearing, usually to their detriment
    • E.g. the employer was absent from the CCMA hearing and as a result an award was made against the employer (despite that the employer may have won had they presented their arguments)
    • A court may award a default judgement against a defendant who fails to submit their arguments countering the allegations made by the plaintiff.
  • Approximately one third of the awards made by the CCMA are default awards.
  • The policy would not cover a default award unless the Insured could show that it did not wilfully ignore the summons or notification.
Subject: 
Employment Practices Liability