It has been experienced that many an employer disregard an arbitration award, issued by a Commissioner of the Commission for Conciliation Mediation and Arbitration (hereafter referred to as the “CCMA”), until they receive a Warrant of Execution against Property. It could be that the general perception is that the CCMA is a lessor authority as it assists employees without any remuneration and therefor awards issued by them are not perceived as enforceable as for example an order of the Magistrate’s Court.

This is a grave mistake and it is important for employers to understand the authority of the CCMA as well as the effect of an arbitration award.

Section 143 of the Labour Relations Act (hereinafter referred to as the “LRA”) states that an arbitration award issued by a commissioner is final and binding and it may be enforced as if it were an order of the Labour Court in respect of which a writ has been issued, unless it is an advisory arbitration award.  It is therefore deduced that section 143 of the LRA not only confirms the authority of the CCMA but also the enforceability of awards issued by same.

In terms of Section 143 (3) of the LRA an arbitration award may only be enforced if the director has certified the arbitration award as such. Most arbitration awards in general orders one party to compensate the other   a sum of money by a certain date. This amount payable is subject to interest at the prescribed rate in terms of section 2 of the Prescribed Rate of Interest Act, 1975 (Act No. 55 of 1975), until date of payment in full, unless the award provides otherwise.

Other arbitration awards order the performance of an act, and if a party who is so ordered fails to comply, the other party to the award may, without further notification, enforce it by way of contempt proceedings instituted in the Labour Court.

In terms of section 143(5) of the LRA an arbitration award in terms of which a party is required to pay an amount of money must be treated for the purpose of enforcing or executing that award as if it were an order of the Magistrate’s Court.

In such instances an enforcement of award is furnished to the Sheriff, instructing the latter to attach and take into execution the movables of the Respondent. Thus, the enforcement of the award here attaches moveable property of the Respondent in order to cover the monetary amount due in terms of the certified arbitration award.

It can therefore be concluded that an arbitration award issued by a Commissioner of the CCMA, needs to be adhered to as it is final, and binding and it may be enforced as if it were an order of the Labour Court in respect of which a writ has been issued.