Forced out? Rachel Kolisi resignation triggers constructive dismissal dispute

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Rachel Kolisi, co-founder of the Kolisi Foundation and its recently resigned CEO, is taking legal steps against the very organisation she helped build.

Resignation That Wasn’t Really a Resignation

But this isn’t just a story of a high-profile exit. Rachel has brought a claim before the Commission for Conciliation, Mediation and Arbitration (CCMA), citing constructive dismissal – a legal term few understand, yet one that lies at the heart of countless unresolved workplace disputes in South Africa.

The Rachel Kolisi resignation departure, initially assumed to be tied to personal matters – including her divorce from Springbok captain Siya Kolisi – has now taken a more serious turn.

On 25 March, Rachel filed formal papers with the CCMA under section 186(1)(e) of the Labour Relations Act, alleging that the Foundation made her working conditions so intolerable, she had no choice but to leave.

What Is Constructive Dismissal?

Constructive dismissal occurs when an employee resigns not out of desire, but because their employer’s conduct has made continued employment unbearable.

Legally, it’s treated as a form of unfair dismissal, where the resignation is seen as a breach of contract by the employer, not the employee.

In her CCMA referral forms obtained by Daily Maverick, Kolisi states that she is seeking “reinstatement and/or compensation” – a key indication that, but for the intolerable circumstances, she would have preferred to remain in her role. According to her complaint, the breakdown occurred on 28 February 2025, likely the date she felt compelled to resign.

Behind the Boardroom Curtain

What makes this case particularly complex is the governance structure of the Kolisi Foundation itself. Though co-founded by Rachel and Siya, the foundation is run by a board that includes high-level figures from the legal, sports, and business sectors. This includes Hannah Sadiki, chair of the foundation and CEO of Bidvest Financial Services and Managing Director at Bidvest Bank, as well as Mahlatse Mashua, Managing Director at Roc Nation Sports International South Africa, among other key notable people.

As with any formal non-profit organisation, the CEO ultimately answers to the board. In such a structure, disagreements over direction, leadership style, or governance responsibilities can result in strained working relationships – sometimes to the point of breakdown.

The Legal Precedent: A High Bar to Clear

While Rachel Kolisi’s allegations are significant, proving constructive dismissal in South Africa is notoriously difficult. Case law – from Murray v Minister of Defence to Jooste v Transnet – requires that the employer’s conduct be so serious that no reasonable employee could be expected to endure it.

Importantly, courts and tribunals assess the cumulative effect of the employer’s conduct, not just isolated incidents. Whether it’s unilateral demotion, unexplained restructuring, persistent bullying, or exclusion from decision-making, each case depends on facts, context, and the employee’s lived experience.

What Happens Next For Rachel?

Rachel Kolisi’s case will first go through conciliation at the CCMA – a process where both parties are encouraged to reach a compromise. If this fails, the case will proceed to arbitration, where a formal ruling may be issued.

Rachel’s inclusion of “reinstatement” as a remedy suggests she remains open to returning – should the conditions that led to her departure be addressed.

A Spotlight on a Systemic Issue

Rachel’s case may be high-profile, but it’s emblematic of a larger systemic issue. Constructive dismissal cases often go unheard because many employees either don’t know their rights or fear further victimisation.

As the case unfolds, it’s likely to shine a much-needed light on this murky area of South African labour law—and perhaps push organisations, especially those operating in the public interest, to uphold not only governance and accountability – but dignity and fairness in the workplace.