LEGAL PRINCIPLE: LABOUR LAW — Master and Servant — Dismissal — Applicability of Natural Justice
PRINCIPLE STATEMENT
In a master and servant relationship, an officer's appointment can lawfully be terminated or dismissed without observing the principles of natural justice.
RATIO DECIDENDI (SOURCE)
"In this class of cases an officer's appointment can lawfully be terminated without first telling him what is alleged against him and hearing his defence or explanation. Similarly an officer in this class can lawfully be dismissed without observing the principles of natural justice."
EXPLANATION / SCOPE
In a master and servant relationship (private employment), the principles of natural justice (audi alteram partem) do not apply to termination or dismissal. The employer is not required to give a hearing or disclose allegations before dismissing. The principle is based on the contractual nature of the relationship. The employer’s prerogative to dismiss is not subject to fair hearing requirements. The exception is statutory employment where the law requires a hearing. The employee’s remedy for wrongful dismissal is damages, not challenge to the procedure. The rule applies to both termination with notice and summary dismissal for cause. The employee may still challenge the factual basis for dismissal if the contract provides for cause, but not the procedure.