How much compensation will I get for unfair dismissal in South Africa?

Section 194 of the Labour Relations Act (LRA) allows arbitrators and judges to grant employees compensation for unfair dismissal where reinstatement is not appropriate. 

A compensation order is one that requires the employer to pay the employee an amount of money in recompense for unfair dismissal or an unfair labour practice. An order for compensation at the CCMA, bargaining council or Labour Court is not intended as an order for damages but merely as a payment made to ‘console’ the employee for the loss of a right (the right not to be unfairly dismissed). 

As a result the calculation of the compensation amount is not required by the LRA to be based on any specified criteria, rules or guidelines except that the amount must: firstly, not exceed twelve months where there has been an ordinary unfair dismissal; secondly, not exceed twenty-four months where there has been an automatically unfair dismissal; and, lastly, be fair and equitable in all circumstances.

Up to judges and arbitrators discretion

Judges and arbitrators have a very wide discretion in view of the fact that the term “fair and equitable” is itself not defined and is open to interpretation.

In Hoffman vs SA Airways (CLL Vol. 15 No. 3 October 2005) the Court said that the determination of appropriate relief calls for the balancing of various interests that might be affected by the remedy, and that this must be guided by the following objectives:

  • To address the wrong resulting from the infringement
  • To deter future violations
  • To make an order that can be complied with
  • Fairness to all affected
  • To take into account the nature of the right infringed and the nature of the infringement itself.

Reasoning for compensation can appear arbitrary 

In practice, many Labour Court orders contain some explanation of how the judge arrived at the compensation amount but many arbitration awards do not contain any reasons for the amount of the compensation awarded. Many of these decisions appear to the onlooker to be arbitrary. 

Just as problematic is the fact that, in those case where reasons for the compensation amount are given, there is little consistency in the reasoning from case to case. A multitude of reasons for the compensation amount have been given including the following according to CLL Vol.15 No.3 (October 2005):

  • The circumstances and consequences of the dismissal
  • Whether or not the dismissal was grossly unfair
  • The employer’s circumstances
  • Any loss that the employer might have suffered due to the employee’s misconduct that gave rise to the dismissal
  • The employee’s circumstances
  • The seniority of the employee
  • The employee’s actual income or other specific amount lost
  • The need to punish the employer or to deter employers from dismissing employees unfairly
  • Whether or not the employer acted in good faith or was misguided
  • The blameworthiness of the employee.

The fact that the calculation of compensation is unregulated and is so varied makes it entirely unpredictable. Employers therefore need avoid getting into a situation where they have to pay compensation, the amount of which may be at the whim of an arbitrator.

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Complete Guide to NSFAS Online Loan Application for South African Students (2025)

If you are a South African student looking to pursue higher education but are facing financial difficulties, the National Student Financial Aid Scheme (NSFAS) is one of the most accessible funding options available. NSFAS provides financial aid in the form of bursaries and loans to qualifying students at public universities and TVET colleges in South Africa.

This guide will walk you through everything you need to know about the NSFAS loan application process, from eligibility requirements to application steps and frequently asked questions.

📌 What is NSFAS?

The National Student Financial Aid Scheme (NSFAS) is a government-funded financial aid scheme aimed at helping students from low- and middle-income households to access tertiary education without the burden of upfront fees.

NSFAS offers both bursaries and income-contingent loans:

  • Bursaries: For eligible students who meet academic and household income criteria (especially for TVET and university students).
  • Loans: For students who do not meet all bursary criteria or who are pursuing postgraduate qualifications not funded under bursary schemes.

✅ Who Qualifies for an NSFAS Loan?

To qualify for an NSFAS loan (especially for postgraduate students or programs not funded under the bursary system), you must:

  • Be a South African citizen.
  • Be financially needy, with a household income of less than R350,000 per year.
  • Have a valid South African ID.
  • Be enrolled or accepted to study at a public university or TVET college.
  • Not be funded through another bursary program that covers all expenses.
  • Maintain satisfactory academic progress (returning students).

📚 Courses Funded by NSFAS

NSFAS primarily funds undergraduate qualifications, but certain postgraduate programs (e.g., PGCE, postgraduate diplomas in education, and professional courses like LLB) may be considered under the NSFAS loan scheme, not bursaries.

If you’re studying:

  • Undergraduate degree or diploma: You are likely eligible for a full NSFAS bursary.
  • Postgraduate study: You may qualify for a loan, depending on the course and funding availability.

📄 Required Documents for NSFAS Application

When applying, make sure you have the following documents scanned and ready:

  1. Certified copy of your South African ID or Smart Card.
  2. Parent(s) or guardian(s) ID documents.
  3. Proof of income (latest payslips, UIF, or affidavit if unemployed).
  4. Consent Form signed by your parent(s)/guardian(s) to allow NSFAS to verify income.
  5. Proof of registration or acceptance at a public institution.
  6. Academic transcripts (for continuing or postgraduate students).

🖥️ How to Apply for an NSFAS Loan Online

Step-by-Step NSFAS Online Application Process (2025)

  1. Visit the NSFAS Website

    Go to: https://www.nsfas.org.za

  2. Create an Account

    • Click on “MyNSFAS” and register your profile.
    • You’ll need a valid email address and South African cellphone number.
    • Choose a strong password and verify your account via email or SMS.

  3. Login and Start the Application

    • After registration, log in to your MyNSFAS account.
    • Click on “Apply” to begin a new application.

  4. Fill in Your Personal Details

    • Input your ID number, name, surname, and other details exactly as they appear on your ID.
    • Provide household income information and living arrangements.

  5. Upload Required Documents

    • Upload all supporting documents in PDF or JPEG format.
    • Each document must be clear and under the size limit specified.

  6. Submit Your Application

    • Review your application for accuracy.
    • Click “Submit” and wait for a confirmation message.

  7. Track Your Application

    • Log in regularly to check your application status.
    • You will be notified via SMS and email at each stage of the process.

🗓️ Important NSFAS Dates (2025)

  • Application Opening Date: September 1, 2025
  • Application Deadline: January 31, 2026
  • Appeals Period: February 2026 (if rejected)
  • Disbursement: After registration and approval

Note: Dates are subject to change; always confirm on the official NSFAS website.

💸 What Does the NSFAS Loan Cover?

NSFAS funding typically includes:

  • Tuition fees
  • Registration fees
  • Accommodation (if living away from home)
  • Meals and transport
  • Learning materials (e.g., textbooks)

For loans, repayment is only required once you start working and earn above a threshold (around R30,000 annually, but subject to change).

🔄 NSFAS Loan Repayment

Repayments are:

  • Income-contingent – you only repay when you can afford to.
  • Administered by DHET (Department of Higher Education and Training).
  • Interest-bearing, but interest rates are low and favorable.

You can also apply for a partial loan conversion to a bursary if you perform well academically.

🔁 How to Appeal a Rejected NSFAS Application

If your application is rejected, you may submit an appeal via your MyNSFAS portal:

  1. Log into your MyNSFAS account.
  2. Click on “Track Funding Progress”.
  3. If rejected, click on “Submit Appeal”.
  4. Upload any missing or corrected documents.
  5. Provide a clear explanation or motivation.

📱 NSFAS Contact Information

📝 Final Tips Before Applying

  • Apply early to avoid system overload near the deadline.
  • Use your own email and cellphone number (do not use someone else’s).
  • Double-check that all your documents are certified and legible.
  • Keep a copy of your submission confirmation for reference.

By following this guide, you can confidently apply for NSFAS funding and move one step closer to achieving your academic and career dreams—without the burden of immediate financial pressure.

 

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