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Labour Relations Act, 1995 (Act No. 66 of 1995)

Commission for Conciliation, Mediation and Arbitration

Rules for the Conduct of Proceedings before the CCMA

Part Eight : General

39. Order of costs in an arbitration

 

 

(1) In any arbitration proceedings, the commissioner may make an order for the payment of costs according to the requirements of law and fairness and when doing so should have regard to—
(a) the measure of success that the parties achieved;
(b) considerations of fairness that weigh in favour of or against granting a cost order;
(c) any with prejudice offers that were made with a view to settling the dispute;
(d) whether a party or the person who represented that party in the arbitration proceedings acted in a frivolous and vexatious manner—
(i) by proceeding with or defending the dispute in the arbitration proceedings, or
(ii) in its conduct during the arbitration proceedings;
(e) the effect that a cost order may have on a continued employment relationship;
(f) any agreement concluded between the parties to the arbitration concerning the basis on which costs should be awarded;
(g) the importance of the issues raised during the arbitration to the parties as well as to the labour community at large;
(h) any other relevant factor.

 

(2) A commissioner may make an award of costs in favour of a party who is represented in arbitration by a person contemplated by rule 25(1)(a) in respect of reasonable disbursements actually incurred in the conduct of its case in the arbitration. A commissioner who makes an award in terms of this provision must specify clearly the items and amounts in respect of which costs are ordered.

 

(3) A commissioner may make an award of costs in respect of the legal fees of a party that is represented in an arbitration by a legal practitioner, only if the other parties to the arbitration were represented by a legal practitioner.

 

(4) An award of costs for costs in terms of sub-rule (3) must be in the amount of —
(a) in respect of the first day of an arbitration (including any arbitration concluded in a single hearing) - R6 000-00 (VAT inclusive);
(b) in respect of each additional day of an arbitration - R4 000-00 (VAT inclusive).

 

(5) The Director may appoint taxing officers to determine any dispute that may arise from any award of costs in terms of this Rule.

 

(6) Any dispute concerning an award of costs must be submitted on LRA Form 7.17 to which any relevant documentation must be annexed.