Your Employee’s Viral Scandal May Not Be Grounds for Dismissal

May 25, 2026

By Leretha Legal (Pty) Ltd

The Labour Court’s judgment in IMATU obo Sauls v City of Cape Town (2026) (“IMATU”) is an important reminder to employers, executives, and HR leaders navigating reputational risk in the digital age. The Court made it clear that off-duty misconduct does not automatically justify dismissal.

In today’s environment, reputational crises can escalate within hours. A viral TikTok, a controversial social media post, a drunk driving arrest, or a public scandal can place immediate pressure on employers to act quickly and decisively.

But the IMATU judgment warns against reactionary, PR driven discipline. The Court confirmed that employers must establish a genuine nexus between the employee’s private conduct and the employer’s legitimate business interests. That link may involve:

operational harm
breakdown of workplace trust
reputational damage to the business
impairment of the employment relationship
direct impact on the employee’s ability to perform their role

Embarrassment alone is not enough.

This distinction is particularly important for businesses operating in highly visible industries such as sales, leadership, media, influencer marketing, public relations, and executive management, where employees are often perceived as extensions of the brand itself. However, the judgment does not entirely remove an employer’s right to discipline employees for off-duty conduct.

The Court acknowledged that disciplinary action may still be justified where:

the conduct damages the employer’s reputation
workplace trust has been destroyed
harassment, discrimination, or unlawful conduct is involved
the employee’s actions materially affect the workplace or colleagues
the conduct creates legitimate commercial or governance risk

The key issue is proportionality. Employers cannot rely solely on public outrage, social media pressure, or reputational panic. Decisions must be grounded in evidence, consistency, procedural fairness, and a demonstrable business impact.

The judgment is a significant development for South African employers managing people, reputation, governance, and risk in an era where the line between private conduct and public scrutiny continues to blur.

At Leretha Legal, we assist organisations with labour risk, governance strategy, workplace investigations, and legally defensible disciplinary frameworks suited to the realities of the digital age.

Disclaimer: This article is for informational and educational purposes only and does not constitute legal advice. The views expressed are the author’s own and should not be relied upon as a substitute for professional judgment. Practitioners should exercise their own independent judgment and comply with applicable laws, ethical rules, and professional standards when using AI tools in legal practice.