South African Post Office SOC Ltd (In Business Rescue) and Others v Commissioner Menzi Fakude N.O. and Others

Why this matter warrants attention

Fabricated: Case Law | The arbitrator relied on a non-existent Constitutional Court case to support the conclusion that business rescue did not suspend labour proceedings. The Court verified that no such case existed and that the citation belonged to an unrelated immigration judgment. Outcome: Arbitration stayed; arbitrator's ruling held prima facie unlawful and materially irregular. The arbitrator relied on a purported Constitutional Court judgment, South African Post Office SOC Ltd (In Business Rescue) and Others v Communication Workers Union and Others, cited as 2023 ZACC 40, to conclude that business rescue did not prevent the unfair-dismissal arbitration. The Labour Court searched the relevant databases and found that no such case existed; citation 2023 ZACC 40 actually referred to Rayment and Others v Minister of Home Affairs and Others, which concerned immigration visas and had nothing to do with business rescue or labour disputes. The Court inferred that the authority was likely generated through AI-assisted research and held that the arbitrator's failure to verify it constituted misconduct, a material irregularity, and a failure to apply his mind. The arbitration was stayed and interdicted pending review, with no order as to costs.