How does CCMA calculate compensation?


CCMA, which stands for Commission for Conciliation, Mediation and Arbitration, is a South African organization that deals with labor disputes and provides resolution services. The CCMA does not calculate compensation directly but rather facilitates the resolution process between employers and employees.

When it comes to calculating compensation for unfair dismissals or unfair labor practices, the CCMA follows the guidelines outlined in the Basic Conditions of Employment Act (BCEA) and the Labour Relations Act (LRA). These acts provide a framework for determining fair compensation in cases of unfair dismissal, unfair labor practices, or other labor-related disputes.

Here are some factors considered when determining compensation:

  1. Length of service: The CCMA considers the length of employment when assessing compensation. Longer service generally leads to higher compensation.
  2. Remuneration: The CCMA takes into account the employee’s salary and benefits when calculating compensation.
  3. Financial loss: Compensation may include any financial loss suffered as a result of the unfair dismissal or unfair labor practice. This can include lost wages, bonuses, or other benefits.
  4. Mitigation: If the employee has managed to find alternative employment and mitigate their losses, the compensation amount may be adjusted accordingly.
  5. Comparable cases: The CCMA also considers previous awards made in similar cases as a point of reference to determine fair compensation.

It’s important to note that the CCMA aims to restore the employee to the position they would have been in if the unfair dismissal or unfair labor practice had not occurred. However, the specific calculation of compensation can vary depending on the circumstances of each case and the discretion of the commissioner handling the matter.

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If you have a specific case or situation in mind, it is advisable to consult with a labor law expert or contact the CCMA directly for more accurate and up-to-date information.

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