Labour Appeal Court recognises material error of law as a standalone ground for review

In a significant judgment, the Labour Appeal Court (LAC) in NBCRFLI v Intermodal Cargo Solutions (Pty) Ltd [2025] 46 ILJ 1679 (LAC) confirmed that a material error of law by an arbitrator can constitute an independent ground for review under section 145 of the Labour Relations Act 66 of 1995 (LRA).

4 Aug 2025 1 min read Employment Law Alert Article

At a glance

In a significant judgment, the Labour Appeal Court (LAC) in NBCRFLI v Intermodal Cargo Solutions (Pty) Ltd [2025] 46 ILJ 1679 (LAC) confirmed that a material error of law by an arbitrator can constitute an independent ground for review under section 145 of the Labour Relations Act 66 of 1995.
It represents a major shift from the previous approach. Now, if an arbitrator misinterprets the law on key issues affecting the business, there are stronger grounds to seek a review.
What stands out in this judgment is the LAC’s discussion on the standard for reviewing arbitration awards, particularly those involving legal interpretation.

The court clarified that the scope of the traditional reasonableness test established in Sidumo
and Another v Rustenburg Platinum Mines and Others [2007] 28 ILJ 2405 (CC) may be expanded to include unlawfulness.

This represents a major shift from the previous approach. Now, if an arbitrator misinterprets the law on key issues affecting the business – such as whether a company falls within a bargaining council’s jurisdiction or how employment legislation applies to operations – there are stronger grounds to seek a review.

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