Fired for one mistake? Court orders SARS to rehire auditor with back pay
The Labour Court ruled SARS unfairly fired a VAT auditor over a R3.6 million refund audit, finding her paperwork lapse was negligence, not gross negligence, and ordered her reinstatement with back pay.
The Labour Court has ordered SARS to give a VAT auditor her job back with full back pay, ruling that a paperwork mistake was ordinary negligence and not the gross negligence needed to justify firing her (IOL).
The ruling is a useful reminder for any worker: an employer calling a mistake "gross negligence" does not make it so.
What happened in the SARS case?
The auditor was handed a R3,608,006.26 VAT refund claim from the Muslim Judicial Council Land Trust in December 2019, after SARS flagged variances in the April 2019 return. She had to check six risks before signing off (IOL).
SARS said she did not follow audit procedures or properly record her findings, and fired her on 2 September 2021. The CCMA upheld the dismissal, so she took the award on review to the Labour Court (IOL).
What did the court find?
Judge Makhura found she had dealt with all six risks but failed to write up her findings on three of them. That was negligence, but not gross negligence (IOL).
Several facts counted in her favour:
| Point | What the court found |
|---|---|
| Financial loss | None. The R3.6 million was lawfully due and SARS paid it on 18 May 2021 |
| Later conduct | She kept doing the same work for more than 18 months with no further complaints |
| Trust | A SARS witness said she still trusted her |
| Usual sanction | Workers who broke the guidelines were often given warnings |
Source: IOL
"Negligence is not rendered gross or serious merely because an employer characterises it as such," the judge said, adding that its seriousness "must be established" (IOL).
What did SARS have to do?
The court declared the dismissal substantively unfair. SARS must reinstate her retrospectively without loss of benefits and pay her back pay within 15 court days. She got a written warning valid for five months instead (IOL).
The judgment was delivered on 11 August 2026 and ordered her back at work by 17 August 2026 (IOL).
Can you be fired for one mistake at work?
The ruling shows a court will look at the actual facts: how serious the mistake was, whether it caused real loss, how the employer treated similar cases and whether trust truly broke down. A label on a charge sheet is not enough on its own (IOL).
Every case turns on its own facts, so this is not a guarantee for anyone else.
What can you do if you think you were unfairly dismissed?
You can refer an unfair dismissal dispute to the CCMA, or to a bargaining council if your sector has one. Referrals generally have to be made within 30 days of the dismissal, so don't wait. The CCMA explains how to refer a case and the forms you need. Union members can also ask their union for help.
FAQ
Why did SARS lose the dismissal case?
The Labour Court found the auditor's failure to record some findings was negligence but not gross negligence, SARS suffered no loss, and similar lapses were often handled with warnings.
What did the court order SARS to do?
Reinstate her retrospectively without loss of benefits, pay back pay within 15 court days, and replace the dismissal with a five-month written warning.
How long do I have to challenge an unfair dismissal?
Disputes generally have to be referred to the CCMA or a bargaining council within 30 days of the dismissal.