Categorieën: Alle - disclosure - law - agreement - employment

door Marius Scheepers 3 jaren geleden

326

7.1.1 Varied topics-Table 1

From 1997 to December 2020, South African courts have adjudicated numerous labour law cases covering a wide range of issues. These include administrative actions, collective agreements, definitions, and the application of common law principles.

7.1.1 Varied topics-Table 1

Labour Law cases decided in the South African Courts (Highlights and updated 1997 to December 2020 [Copyright: Marius Scheepers/7.1])

Varied topics: Administrative action, Administrative law, Collective agreement, Common law, Definition, Information, Interest dispute, Mutual interest vs rights issue, Nature of dispute, Parity principle, Protected disclosure act, Public Holidays Act 1994, Trade Union, Transfer of Employment, Unreasonable Delay Rule.

unreasonable delay rule
The aggrieved party at least had to place the offending party on terms, seek the intervention of the registrar of the labour court, or file an application to compel, prior to filing an application to dismiss.

does not apply where the Prescription Act applies, as was the case in this matter. The rule only applies to applications for review.

CA9/05

Solidarity & Others v Eskom Holdings Ltd

Transfer of employment
Consultation

J 464/20

Comunication Workers Union v Mobile Telephone Networks South Africa (MTN SA) (J 464/20) [2020] ZALCJHB 170 (1 June 2020)

[30] The Applicants reliance on section 197(6) is misplaced. The Applicant does not have a right to consult or to negotiate or to request information in a section 197 transfer process where there is no agreement as contemplated in section 197(6), of which there is none in casu. In fact, it was conceded by Mr Ndlovu that section 197(6) finds no application in this matter.

Liquidation

J203/16

Baloi and Another v Maddox Adams Intrenational South Africa (Pty) Ltd (J203/16) [2018] ZALCJHB 264 (15 August 2018)

Hydro Colour Inks (Pty) Ltd v CEPPWAWU [2011] 7 BLLR 637 (LAC) at para 17.

I have already mentioned that the fact that Keep Inks is insolvent is common cause. Section 197A in so far as it states that the new employer is automatically substituted in the place of the old employer in all contracts of employment in existence immediately before the old employer's winding-up or sequestration finds application. It must be emphasised that the automatic substitution only relates to all "contracts of employment" in existence immediately before the old employer's winding-up or sequestration. This means that the new employer takes no responsibility for the actions of the old employer. By way of an example, any wrongful dismissal by the old employer remains a matter for the old employer.

Restaurant

J1598/16

Sodexo Southern Africa (Pty) Ltd v Servest (Pty) Ltd and Others (J1598/16) [2018] ZALCJHB 177 (11 May 2018)

See Aviation Union of SA and Another v SA Airways (Pty) Ltd and Others (2011) 32 ILJ 2861 (CC) (SAA).

[16] It is by now well established that whether there has been a transfer of a business as a going concern for purposes of section 197 is a matter of fact, to be determined objectively. This necessarily involves an enquiry into (1) the existence of a transfer from one employer to another, (2) whether there was a transfer of a business (is there an economic entity capable of being transferred?) and (3) whether the business is transferred as a going concern (does the economic entity that is transferred retain its identity after transfer?).

insourcing

JA122/2017

Imvula Quality Protection (Pty) Ltd and Others v University of South Africa (JA122/2017) [2018] ZALAC 33; [2018] 12 BLLR 1151 (LAC) (25 September 2018)

This arrangement cannot be said to fall within the meaning of a transfer of a business as a going concern, as contemplated by s 197 of the LRA.

Transfer as a going concern in terms of the notarial bonds

JA47/2017

Spar Group Limited v Sea Spirit Trading 162 CC t/a Paledi and Others (JA47/2017) [2018] ZALAC 15; (2018) 39 ILJ 1990 (LAC); [2018] 10 BLLR 1000 (LAC) (7 June 2018)

A creditor perfecting a notarial bond over movable property of its debtor normally does not intend to acquire responsibility for conducting the business of the debtor for the purpose of making profits on an ongoing basis...Requiring a creditor perfecting a notarial bond to assume responsibility for the employment contracts of the debtor will render this form of security unduly burdensome and less effective. Although the appellant assumed responsibility for conducting the business of the corporations, it did so temporarily with the limited purpose of recovering its debt.

20] The present situation bears resemblance, in a limited respect, to a change in shareholders through the sale of shares, where the new shareholder gains control of a business, but the business (i.e. the employer) remains intact and does not transfer to the new shareholder. In such cases control or responsibility for the business may be shifted, but the legal identity of the employer remains the same, as do the contractual relationships between the employer and employees. Section 197 of the LRA does not apply in these circumstances.[8] 21] The Labour Court therefore erred in finding there was a transfer of business and that section 197 of the LRA was applicable in these circumstances.

Promotion

JR350/16

Letsogo v Department of Economy and Enterprise Development and Others (JR350/16) [2018] ZALCJHB 48 (9 January 2018)

Ga-Segonyana Local Municipality v Venter N.O. and Others (JR961/13) [2016] ZALCJHB 391; (11 October 2016).

City of Cape Town v SA Municipal Workers Union on behalf of Sylvester & others (2013) 34 ILJ 1156 (LC), in further reference to Aries v CCMA and others (2006) 27 ILJ 2324 (LC).

held that the overall test is one of fairness, and that in deciding whether or not the employer had acted unfairly in failing or refusing to promote the employee, relevant factors to consider include whether the failure or refusal to promote was caused by unacceptable, irrelevant or invidious considerations on the part of the employer; or whether the employers decision was motivated by bad faith, was arbitrary, capricious, unfair or discriminatory; whether there were insubstantial reasons for the employers decision not to promote; whether the employers decision not to promote was based upon a wrong principle or was taken in a biased manner; whether the employer failed to apply its mind to the promotion of the employee; or whether the employer failed to comply with applicable procedural requirements related to promotions. The list is not exhaustive. [21] Central to appointments or promotion of employees is the principle that that courts and commissioner alike should be reluctant, in the absence of good cause, to interfere with the managerial prerogative of employers in making such decisions

City of Cape Town v SA Municipal Workers Union obo Sylvester and Others (C1148/2010) [2012] ZALCCT 40; [2013] 3 BLLR 267 (LC); (2013) 34 ILJ 1156 (LC) (7 September 2012).

joinder of new employer

the court expressly rejected the notion that the employer has the prerogative to decide who to appoint and that it should not be questioned when it exercises that discretion. The court stated that the proper yardstick was fairness to both parties.

CA11/2016

High Rustenberg Estate (Pty) Ltd v NEHAWU obo Cornelius and Others (CA11/2016) [2017] ZALAC 20; (2017) 38 ILJ 1758 (LAC) (23 March 2017)

[21] ...The purpose of the initial order of this Court, was that because the new employer had not been heard, a stated case should be decided by the court a quo in circumstances where the appellant, being the new employer, would have an opportunity to present its case. If an attachment of property takes place, it does appear that the new employer has to be joined to such proceedings. However, the question of joinder cannot on its own trump the wording of s 197 (5) of the LRA, read in terms of its purpose, namely that if an award is binding on the old employer it is deemed to be binding on the new employer. The fact that the Labour Court substitutes the formulation of the award for the one which is set aside cannot detract from this conclusion, for, if it did, it would ultimately damage the very purpose of s 197, namely to protect employee rights in the context of a sale of a business as a going concern.

Service

J435/17

Imvula Quality Protection and Others v University of South Africa (J435/17) [2017] ZALCJHB 310; [2017] 11 BLLR 1139 (LC); (2017) 38 ILJ 2763 (LC) (31 August 2017)

iMvula and Red Alert retain all of the other components that go to make up their respective businesses. They will be free to offer their services to other clients, and to deploy those employees not engaged by UNISA on other sites, should posts be available. The true position therefore is that the contracts for the provision of services concluded between UNISA and iMvula and Red Alert respectively have come to an end, and that no part of the infrastructure for the conducting of the business of providing a security service is to be transferred to UNISA. In those circumstances, UNISAs decision to insource in terms of the shared services model and the offers of employment consequently made to some of iMvula and Red Alerts staff does not trigger s 197.

Application of s 197 to insourcing of security services. Insourcing limited to the making of offers of employment to certain of the outgoing contractors employees. In terms of a shared services model, clients role after termination limited to employment, client not taking transfer of any business infrastructure. Third party to be appointed to provide management and infrastructure for security services. Held that there is no business that is the subject of any transfer and that s 197 thus not applicable.

National Health and Allied Workers Union v University of Cape Town & others (2003) 24 ILJ 95 (CC)

[52] What lies at the heart of disputes on transfers of businesses is a clash between, on the one hand, the employers interest in the profitability efficiency or survival of the business, or if need be its effect is of disposal of it, and the workers interest in job security and the right to freely choose an employer on the other hand[53] Section 197 . relieves the employers and the workers of some of the consequences that the common law visited on them. Its purpose is to protect the employment of the workers and to facilitate the sale of businesses as going concerns by enabling the new employer to take over the workers as well as other assets in certain circumstances. The section aims at minimising the tension and the result labour disputes that often arise from the sales of businesses and impact negatively on economic development and labour peace. In this sense, s 197 has a dual purpose, it facilitates the commercial transactions while at the same time protecting workers against job losses

[18] In essence, the court is required to determine whether UNISAs termination of its contracts with iMvula and Red Alert and its decision to employ the majority of their employees engaged on the contract, constitutes the transfer of a business as a going concern for the purposes of s 197.

employment perspective

J890/17

Tasima (Pty) Ltd v Road Traffic Management Corporation and Others (J890/17) [2017] ZALCJHB 198; (2017) 38 ILJ 2385 (LC) (25 May 2017)

COSAWU v Zikhethele Trade (Pty) Ltd

[T]he decisive criterion for determining whether there has been a transfer of an undertaking (read business) is whether, after the alleged transfer, the undertaking has retained its identity, so that employment in the undertaking is continued or resumed in the different hands of the transferee. In order to determine whether there has been a retention of identity it is necessary to examine all the facts relating both to the identity of the undertaking and the relevant transaction and assess their cumulative effect, looking at the substance, not at the form, of the arrangements. The mode or method of transfer is immaterial. The emphasis is on a comparison between the actual activities of and actual employment situation in an undertaking before and after the alleged transfer. Kelman v Care Contract Services [1995] ICR 260. What seems to be critical is the transfer of responsibility for the operation of the undertaking. Mummery Js conclusion in Kelman offers a salutary guideline. He said:

Kelman v Care Contract Services [1995] ICR 260.

The theme running through all the recent cases is the necessity of viewing the situation from an employment perspective, not from a perspective conditioned by principles of property, company or insolvency law. The crucial question is whether, taking a realistic view of the activities in which the employees are employed, there exists an economic entity which, despite changes, remains identifiable, though not necessarily identical, after the alleged transfer.

[31] But in South African law, no court including the highest court has made this distinction. In City Power the Constitutional Court specifically dealt with the question whether section 187 applies to a municipal entity. It found that it does. It also applied s 197 to organs of state or public authorities in Rural Maintenance and in NEHAWU v UCT. Interpreting the legislation with its purpose in mind, I can see no reason to create such a distinction now.

retrenchment

JS230/15

Du Plessis v Amic Trading (Pty) Ltd t/a Toy's R Us (JS230/15) [2017] ZALCJHB 196 (23 May 2017)

Van der Velde v Business & Design Software (Pty) Ltd & Another (2006) 27 ILJ 1738 (LC) at 1748-9[2008] ZALC 80; ; [2006] 10 BLLR 1004 (LC) at 1014-5.

In summary, and in an attempt to crystallise these views and to formulate a test that properly balances employer and worker interests, the legal position when an applicant claims that a dismissal is automatically unfair because the reason for dismissal was a transfer in terms of section 197 or a reason related to it, is this: the applicant must prove the existence of a dismissal and establish that the underlying transaction is one that falls within the ambit of section 197; the applicant must adduce some credible evidence that shows that the dismissal is causally connected to the transfer. This is an objective enquiry, to be conducted by reference to all of the relevant facts and circumstances. The proximity of the dismissal to the date of the transfer is a relevant but not determinative factor in this preliminary enquiry; if the applicant succeeds in discharging these evidentiary burdens, the employer must establish the true reason for dismissal, being a reason that is not automatically unfair; when the employer relies on a fair reason related to its operational requirements (or indeed any other potentially fair reason) as the true reason for dismissal, the Court must apply the two-stage test of factual and legal causation to determine whether the true reason for dismissal was the transfer itself, or a reason related to the employers operational requirements; the test for factual causation is a but for test would the dismissal have taken place but for the transfer? if the test for factual causation is satisfied, the test for legal causation must be applied. Here, the Court must determine whether the transfer is the main, dominant, proximate or most likely cause of the dismissal. This is an objective enquiry. The employers motive for the dismissal and how long before or after the transfer the employee was dismissed, are relevant but not determinative factors. if the reason for dismissal was not the transfer itself (because, for example, it was a dismissal effected in anticipation of a transfer and in response to the requirements of a potential purchaser of the business) the true reason may nonetheless be a reason related to the transfer; to answer this question (whether the reason was related to the transfer) the Court must determine whether the dismissal was used by the employer as a means to avoid its obligations under section 197. (This is an objective test, which requires the Court to evaluate any evidence adduced by the employer that the true reason for dismissal is one related to its operational requirements, and where the employers motive for the dismissal is only one of the factors that must be considered). if in this sense the employer used the dismissal to avoid it section 197 obligations, then the dismissal was related to the transfer; and if not, the reason for dismissal relates to the employers operational requirements, and the Court must apply section 188 read with section 189 of the LRA to determine the fairness of the dismissal.

declaringorder

J2718/2016

Fraser Alexander (Pty) Limited v Instasol Tailings (Pty) Limited and Others (J2718/2016) [2016] ZALCJHB 523 (5 December 2016)

(1) There must be the transfer, the whole or part of a business, as a going concern. The first element (the existence of a transfer) in circumstances such as the present is not controversial - the termination by a client of an agreement with one service provider and the conclusion of an agreement with another for the provision of similar services, is capable of constituting a transfer. In particular, the courts have held that the absence of a contractual nexus between the outgoing and incoming contractors does not preclude the application ofs 197... (2) In relation to the existence of a the whole or part of a busines... n economic entity , or an organised grouping of employees and assets facilitated the exercise of an economic activity. Although the ECJ has made clear that an entity cannot be reduced to the activity entrusted to it, the relevant UK regulations include a service provision change within the scope of what is contemplated as a business. In any event, as this court observed in Harsco, the definition of business in s 197(1) is broad, and it is difficult to conceive of an economic entity that would not comprise a business for the purposes of s197. Whether a business is transferred as a going concern is the subject of a multi-factoral enquiry established by Nehawu v University of Cape Town, and referred to below....(the ECJ in Spijkers v Gebroeders Benedick Abattoir v Alfred Benedik en Zonen BV [1986] 2 CMLR 286 (ECJ) where the ECJ held that the decisive criterion is whether the business concerned retains its identity after the transfer. That would be indicated, amongst other things, by the fact that the operation is actually continued or resumed by the new employer, with the same or similar activities.)...(Aviation Union of SA & another v SAA Airways (Pty) Ltd & others (2009) 30 ILJ 2849 (LAC) and National Education Health & Allied workers Union v University of Cape Town & others (2003) 24 ILJ 95 (CC))...

[37] In summary: Intasol will perform services at the same site and in doing so, it will carry on the same activity for the same client, Harmony. Intasol will utilise infrastructure provided by Harmony and previously utilised by the applicant. Intasol has engaged with certain of the applicants employees with a view to employing them on the same site, and it is open to employing at least 84 of the applicants employees on the same site to perform the same work but on different (less favourable) conditions of employment. For the above reasons, in my view, the termination by Harmony of its contracts with the applicant and the appointment of Intasol to provide the same services constitutes a change to the identity of the party who has had the conduct of activities to which an organised group of employees has been principally dedicated for a particular client. There is thus a transfer of a business as a going concern for the purposes ofs 197of the LRA.

Section 189 claim upheld

JS66/2009

National Union of Metalworkers of South Africa and Others v Niclotte (Edms) Beperk and Others (JS66/2009) [2016] ZALCJHB 170 (4 May 2016)

City Power (Pty) Ltd v Grinpal Energy Management Services (Pty) Ltd and others

In essence, the approach adopted inNEHAWUfollows that of the European Court of Justicein the application of the Business Transfers Directive (2001/23/EC) which is applicable in the European Union, and dictates that a transfer must relate to an autonomous economic entity (defined to mean an organized group of persons and assets facilitating the pursuit of an economic activity that promotes a specific objective). In turn this involves a determination whether that entity retains its identity after the transfer; that is, the transferor must carry on the same or similar activities with the personnel and/or the business assets without substantial interruption...The question is whether the activities conducted by a party, such as first respondent, constitute a defined set of activities which represents an identifiable business undertaking so that when a termination of an agreement between first respondent and appellant takes place, it can be said that this set of activities, which constitutes a discrete business undertaking, has now been taken over by another party

Unitrans

To the extent that the contractual right to provide warehousing services now vests in TMS, the same assets are used to provide those services and the activities conducted at Nampaks behest are substantially the same as those performed by the first applicant prior to 1 February, the business performed by the first applicant has transferred as a going concern to TMS.

[80]The Court inUnitransaccepted that a change in service providers triggered the application of section 197 in circumstances where the incoming contractor is permitted the right of use of infrastructural assets owned by the client necessary for the purpose of continuing the relevant service.

J389/16

Sodexo Southern Africa (Pty) Ltd v Olives and Plates Foods 2 (Pty) Ltd and Others (J389/16) [2016] ZALCJHB 136 (29 March 2016)

The catering services provided at the Multichoice restaurants and coffee shops is an economic entity and constitutes a service for purposes of section 197(1)(a).

Where Olives acquired the right of use of the infrastructural assets and where it will provide the same service from the same premises the business was transferred as a going concern and it falls within the ambit of section 197.

SeeAviation Union of SA and another v SA Airways (Pty) Ltd and others (2011) 32 ILJ 2861 (CC), Franmann Services (Pty) Ltd v Simba (Pty) Ltd and another(2013) 34 ILJ 897 (LC), Aviation Union of SA and another v SA Airways (Pty) Ltd and others (Aviation) (2011) 32 ILJ 2861 (CC) at paragraph 71, TMS Group Industrial Services (Pty) Ltd v Unitrans Supply Chain Solutions (Pty) Ltd and others (2015) 36 ILJ 197 (LAC) at paragraphs 25 and 26, City Power (Pty) Ltd v Grinpal Energy Management Services (Pty) Ltd and others (2014) 35 ILJ 2757 (LAC), TMS Group Industrial Services (Pty) Ltd v Unitrans Supply Chain Solutions (Pty) Ltd and others (2015) 36 ILJ 197 (LAC).

JA79/2014

MALUTI-A-PHOFUNG LOCAL MUNICIPALITY

Court of Appeal in P and O Trans-European Limited v Initial Transport Services Limited

to determine whether the conditions for the transfer of an economic entity are satisfied, it is also necessary to consider all the factual circumstances characterising the transaction in question, including in particular the type of undertaking or business involved, whether or not its tangible assets such as buildings and movable property are transferred, the value of its intangible assets at the time of the transfer, whetehr or not the core of its employees are taken over by the new employer, whether or not its customers are transferred, the degree of similarity between the activities carried on before and after the transfer, and the period, if any, for which those activities were suspended. These are, however, merely single factors in the overall assessment which must be made, and cannot therefore be considered in isolation (see in particular Spijkers paragraph 13 and Szen paragraph 14).[14] See also Wynn-Evans The Law of TUPE Transfers (Oxford University Press 2013) at 41-44.

In support of his submission on this point, MrVan der Merwemade reference to a number of cases, includingSACCAWU v Shoprite Checkers(Pty)Limited[1997] 10 BLLR 1360 (LC)[also reported at[1998] JOL 1686(LC)Ed];Hultzer v Standard Bank of South Africa[1999] 8 BLLR 809 (LC)[also reported at[1999] JOL 4896(LC)Ed] andUniversity of the Western Cape Academic Staff Union and others v University of the Western Cape(1999) 20 ILJ 1300 (LC). The principle established in these cases is one that inclines this Court to avoid granting what amounts to status quo relief in unfair dismissal disputes pending a final determination of the dispute by the appropriate dispute resolution body. None of these cases, it seems to me, establishes that financial hardship and loss of income can never be grounds for urgency. If an applicant is able to demonstrate detrimental consequences that may not be capable of being addressed in due course and if an applicant is able to demonstrate that he or she will suffer undue hardship if the court were to refuse to come to his or her assistance on an urgent basis, I fail to appreciate why this Court should not be entitled to exercise a discretion and grant urgent relief in appropriate circumstances. Each case must of course be assessed on its own merits.

Transfer of employment contracts where a business was transferred as a going concern and where employees were dismissed because of a transfer, the dismissal was automatically unfair.

performed the services previously provided by Interaction in the form of a call centre. Services were rendered to the same category of clients and the main business objective remained exactly as it had during the duration of the agreement. The same operational methods of rendering services were pursued by MTN. Furthermore, MTN took over a significant part of Interactions former employees together with a significant number of agents, all of whom were assigned to provide a necessary service.

Sufficient to fall within the scope of s 197 of the LRA.

Joinder

Court holding that transferee party had a clear and substantial interest in the matter and had to be joined.

An alleged employer who had not been part of conciliation proceedings with dismissed employees. s 197(9) transfer, the old and new employers were jointly and severally liable in respect of any claim concerning any term or condition of employment that arose prior to the transfer and s 197(2)(a) provided that the new employer was automatically substituted in the place of the old employer in respect of all contracts of employment in existence immediately before the date of transfer.

197A

Label of section 197A in contract not significant when all the indications were to the contrary.

197: Basis by which to determine whether there had been a transfer of business as a going concern by an old employer to a new employer:

Operation services constituted a discrete business; assets and infrastructure in order to continue to provide the same service; services could only be performed at the production facility; make use of the same equipment and IT systems

197: All of the assets, both tangible and intangible were transferred to the appellant. The business was identifiable and it was discrete. It involved equipment and expertise which was required to continue the project of providing electricity. When the court a quo referred to the appellant acting in a holding operation, it clearly meant that the appellant would run the business in the interim, until such time as a new contract was concluded with a third party.

Aviation Union of South Africa and Another v South African Airways (Pty) Ltd and Others 2012 (1) SA 321 (CC).

197: Going concern: same equipment and IT systems, constituted an economic entity, the contractual right to perform the services, the assets owned were used, would provide the same services from the same premises, without interruption, constituted a transfer as a going concern.
197: It did not appear there was a transfer of business as a going concern. were transferred from Retail to Supply Chain. There were no changes to their terms and conditions of employment. The respondents disputed that there was any need to consult as the affected employees consented to a transfer.
197: He refused to sign the restraint of trade agreement. Amounted to a fundamental change to the terms and conditions of his employment that were clearly less favourable. Dismissal was procedurally unfair and the applicant was to be paid an amount equal to 12 months.

(JS 574/2011) [2013] ZALCJHB 160

Suraci v Master Business Associates Holdings (Pty) Ltd

accompanying assets were transferred back to the municipality or to the MEC and that the first respondent was making use of the same employees that were in the employ of Remant prior to the termination of the contract between Remant and the municipality. Was any transfer of the business to the MEC at all. In the evidence of the applicant there was no longer any business running when Remant ceased its operations. The provision of a municipal bus service was not a business as contemplated in s 197 of the Act, but rather the exercise of a statutory obligation imposed on the second respondent and which had to be undertaken regardless of the question of profit. Had in fact ceased operations prior to such transfer.
A snapshot taken of the businesses on the next day or any day thereafter, would reveal a similar picture.

Two questions had to be answered: Did the transaction create rights and obligations that required one entity to transfer something in favor of/or for the benefit of another or to another? If the answer was in the affirmative, then the question was whether the obligation imposed within the transaction contemplated a transferor who had the obligation to effect a transfer or allow a transfer to happen and a transferee who received the transfer. This was not the equivalent situation to that of an outsourcing agreement.

PA 08/10

PE Pack 4100CC v Sanders and Others

City Power had stated its clear intention that it would take over all of the services rendered by the applicant in terms of the service agreements.

no assets, tangible or intangible, goodwill and the like that was to be transferred, and in the absence of any specific evidence relating to the use of any of Simbas assets or infrastructure, there was no transfer as a going concern.
S 197A

Transfer test

only contracts of employment transferred

not wrongful dismissal

JA48/07; 77/09

Hydro Colours Inks (Pty) Ltd v Chemical, Energy, Paper, Printing, Wood and Allied Workers Union

Right to be heard; Public sector employer must provide opportunity for representations prior to taking decision to transfer employee

failure to afford the employee an opportunity to make representations prior to the decision vitiated the transfer decision and the decision therefore was void, invalid and without legal effect.

took place despite its trading possibly having been interrupted for a limited period; factors that were relevant

National Education Health and Allied Workers Union v University of Cape Town & Others (2002) 23 ILJ 306 (LAC).[(2003) 24 ILJ 95 (CC).]

JA43/06

Ponties Panel Beaters Partnership v NUMSA & Others

took place despite its trading possibly having been interrupted for a limited period

SAMWU v Rand Airport Management Co Ltd [2005] 3 BLLR 241 (LAC)

Section 197; there was an economic entity capable of being transferred

there existed an economic entity which, despite changes, remained identifiable, though not necessarily identical, after the transfer

Sale of business

Services performed transferred to new contractors after a tender process

Some of assets used in performance of services transferred and majority of employees transferred

S197

"from"-"by"

consider location, nature of business

Transfer not complete until agreement reached; ongoing payment of travelling allowances and arrangements
Consent of employee not required to the transfer; Transfer automatic unless employee opts for redundancy or wave right for transfer

Van der Velde v Business and Design Software (Pty) Ltd and Another (2006) 27 ILJ 1225 (LC), in which it was found that s 197 of the LRA created a statutory exception to the common law, in that if a business is transferred as a going concern, one employer was as a matter of law substituted for another, irrespective of the consent of the employee.

whether in any particular situation a business has in fact been transferred as a going concern had to be determined objectively in light of the unique facts and circumstances of each case, with due regard to the substance and not the form of the transaction
no right to consultation when a business is transferred as a going concern arises under the provision of s 197.

Outsourcing; not all outsourcing transactions covered by s 197

business: Discrete economic entity in the sense of an organized grouping of persons and assets facilitating the exercise of an economic activity which pursues an economic objective

Transfer of business as going concern; Agreement

without agreement of employees

197(6)

Transfer was the main dominant, proximate, likely cause of dismissal

Employee dismissed subsequent to transfer has to produce sufficient evidence to raise a credible possibility that an automatically unfair dismissal has taken place

Transfer of a business as a going concern

Date on which the transaction is completed and the new employer takes unencumbered transfer of business

going concern

what happened to the goodwill of the business, the stock in trade, the premises, contracts with clients or customers, the workforce and the assets of the business; whether there has been an interruption of the operation of the business and, if so, its duration; and whether the same or similar activities are continued after the transfer.

[W]hat is transferred must be a business in operation so that the business remains the same but in different hands. This must be determined objectively in the light of the circumstances of each transaction.

JS546/05

CEPPWAWU & Others v Cordebo & Another

going concern; 197

such as the transfer or otherwise assets, both tangible or intangible, whether or not workers are taken over by the new employer, whether customers are transferred and whether or not the same business has been carried on by the new employer.

no business entity on its own

Employee dismissed as a direct result of transfer of a business as a going concern

197

Transfer of business as a going concern

Acquisition of all the shares of a company not triggering provisions of s 197

Automatically Unfair dismissal

whether he was dismissed for an automatically unfair reason as listed in s 187(1)(g) of the LRA or whether he was dismissed for operational requirements; was not entitled to give him an ultimatum to accept alternative employment on less favorable terms or face dismissal; the employers failed to discharge the onus of establishing that the employee was dismissed for a reason other than the transfer of business and that it was an automatically unfair dismissal

second generation contracting-out

two-phase transaction intrinsic to second generation contracting-out did constitute a transfer i.t.o. s 197

Rejected the submission that no transfer could take place in terms of s197 without prior compliance with s197(7) and held that the agreement envisaged in that section could be concluded after the transfer
S 197
Trade Union
Membership outside union's constitution
Unregistered Trade Union

J256/19

Vodacom (Pty) Ltd and Others v National Association of South African Workers ('NASA') and Another (J256/19) [2019] ZALCJHB 49; (2019) 40 ILJ 1882 (LC) (4 March 2019)

Interdict unregistered union entering premises to communicate and meet with employees of contractor nature of rights infringed jurisdiction of court to entertain interdict concerning interference with property rights -requirements of final interdict met

[32] Therefore, as matters stand, the respondents cannot bypass the LRA mechanisms for achieving rights of access and convening meetings of members at the workplace of the employer by trying to directly enforce their constitutional rights to freedom of association and fair labour practices. Consequently, have no right to insist on access to the premises to communicate with Bidvest Services employees or to hold meetings with them on the premises

internal dispute

J1524/17

South African Chemical Workers' Union ('SACWU') and Another v Modise (J1524/17) [2017] ZALCJHB 265 (7 July 2017)

to interdict the unions general secretary from convening a purported meeting of the union labour court jurisdiction under s 158(1)(e)(i) confined to disputes about the interpretation and application of the constitution between union members and a union does not extend to a dispute between the union and an office bearer who is not a member

taking possession of movable property

JS964/2015

Vermaak and Another v Sea Spirit Trading 162 CC t/a Paledi Super Spar and Others (JS964/2015) [2017] ZALCJHB 34; (2017) 38 ILJ 1411 (LC) (31 January 2017)

The question is: does the perfection of a notarial bond and consequent taking of possession of movable property to realise an indebtedness constitute a transfer of a business as a going concern as contemplated in section 197 of the LRA.

[70] In my view Spar did more that to act as a creditor seeking to secure and realise indebtedness to it. If Spar simply sought to secure and realise a debt, it could have taken control over the movable property of Paledi Super Spar and Paledi Tops and could have sold or dispose of the moveable property to realise the debt. Instead, Spar took not only control over the movable property, but also of the stores and operated the stores from 1 July 2015 until April 2016, when Spar sold the businesses as going concerns.

[74]Section 197 will be triggered if a business was transferred as a going concern. That means that a business in operation is transferred to remain the same but in different hands. The sale of a business is not required by section 197, nor is it required that the transfer be a long term or permanent one. In my view the intention of the parties or the reason why a business is transferred, is immaterial and irrelevant and play no role in the objective enquiry whether a transfer as contemplated in section 197 of the Act has taken place.

Van der Velde v Business and Design Software (Pty) Ltd (2006) 27 ILJ 1738 (LC) at 1148-1149

In summary, and in an attempt to crystallize these views and to formulate a test that properly balances employer H and worker interests, the legal position when an applicant claims that a dismissal is automatically unfair because the reason for dismissal was a transfer in terms of s 197 or a reason related to it, is this:

Registration denied

union was not formed and managed by employees to regulate their relations with employers, nor did it function as a trade union in accordance with its constitution;.

term genuine; that the Registrar does not enjoy a majoritarian gatekeeper role at the registration stage and that his refusal to register the union was a misinterpretation of his authority; registration of the union was ordered.

although registration was not a sine qua non for the separate juristic personality of a union registered unions enjoy various organisational rights which were critical to a unions viability and efficacy

C491/04

Workers Union of SA v Crouse, J N.O. & The Department of Labour

Locus standi

union had failed to cite the individual employees as co-applicants

union was entitled to refer the dispute in terms of s200(1) of the LRA and that the referral was valid

Public Holidays Act 1994
Offer for re-employment

JS40/14

Truter v Heat Tech Geysers (Pty) Ltd (JS40/14) [2016] ZALCJHB 83 (2 March 2016)

Provides for a minimum number of public holidays days ; Where a public holiday falls on a Sunday, both the Sunday and the Monday constitute public holidays
Protected disclosure act
ulterior motive not necessarily the same as acting in bad faith
Protected disclosure act
should not cover personal grievances made against senior employees

J1914/19

Luthuli v South African National Blood Service and Another (J1914/19) [2019] ZALCJHB 296 (30 October 2019)

[26.18]...The conduct the applicant complained of relates in essence to his own personal grievances that have evolved between him and the CEO over time since the latter took over. The definition of a protected disclosure is extremely wide, but it could not have been envisaged that it should cover personal grievances made against senior employees. To the extent that central to the applicants complaint in regards to the tip-offs is that the CEO interfered with the policy in that regard, whether that constituted an unlawful or criminal conduct is not for this Court to decide.

[26.19]...The strident language of the grievance is further a strong indication that the disclosure is not made good faith as required by the PDA, as what he seeks is to ensure that not only are his grievances dealt with, but that the CEO equally faces some consequences.

26.22 To the extent that the whistle-blowing procedures were not followed as conceded by the applicant, and further in the light of the views expressed in this judgment about whether the disclosures, if any were made, and also in good faith, it is doubted that on the face of it, there is causal link between the protected disclosures and the occupational detriment. In this regard, the applicant conceded that indeed he had recorded the EXCO meeting using his own mobile phone. If the respondents had reason to believe that the actions of the applicant constituted misconduct deserving an investigation, that is a matter within their prerogative.

Van Alphen v Rheinmetall Denel Munition (Pty) Ltd ([2013] 10 BLLR 1043 (LC); (2013) ILJ 34 3314 (LC) at para 22

26.15 It is further trite that the scheme of the PDA encourages internal procedures and remedies to be exhausted before the disclosure is made public.[17] In Alphen v Rheinmetall Denel Munition, it was further confirmed that the lodging of a grievance does indeed constitute an exercise of a right conferred by the LRA for the purposes of a claim of automatically unfair dismissal under section 187(1) of the LRA. This was because the act of lodging a grievance is merely an assertion of a right not to be treated unfairly, something which is guaranteed under the protection of fair labour practices enshrined in section 23(1) of the Constitution and section 185(b) of the LRA.[18]

Kabe v Nedbank Ltd (2018) 39 ILJ 1760 (LC) at para [29]

The grievances by the applicant do not meet the definition set out above (Definition of protected disclosure in Section 1 of the PDA). At a workplace, it is awaited that employees would be aggrieved now and then. It is for that reason that a good practice dictates that an employer should have in place a dedicated procedure to deal with employees grievances. Some grievances have merit whilst others do not. Regard being had to the preamble of the PDA, it was not enacted to allow employees to disparage their employers. Ordinarily, grievances are more about personal feelings of employees. The PDA is not intended to deal with personal feelings but with criminal and irregular conduct. It is largely concerned with more serious breaches of legal obligations.

nexus

J1485/2019

Gallocher v Social Housing Regulatory Authority and Another (J1485/2019) [2019] ZALCJHB 162; (2019) 40 ILJ 2723 (LC) (3 July 2019)

Matlosana Local Municipality supra

Thus, what I am required to establish is the 'proximate cause' of the disciplinary enquiry. It is clear that a disciplinary enquiry against an employee need not necessarily be the direct result of a disclosure. I propose that a useful and practical approach is to consider factors such as (i) the timing of the disciplinary enquiry; (ii) the reasons given by the employer for taking the disciplinary steps; (iii) the nature of the disclosure; (iv) and the persons responsible within the employer for taking the decisions to institute charges.

JS955/201

Ward v Oraclemed Health (Pty) Ltd (JS955/2016) [2018] ZALCJHB 309 (2 October 2018)

Radebe and Another v Premier Free State Province and Others [2012] 12 BLLR 1246 (LAC).

There is further, in my view, an overlap when determining whether the employee making the disclosure was acting in good faith and further whether he had the requisite reason to believe when making a disclosure that improprieties had been committed or were continuing. Honesty plays a pivotal role in both situations. Whilst good faith and honesty may conceivably amount to the same thing, I am of the view that a case by case approach is the proper one for a court considering these issues. Factors such as reckless abandon, malice or the presence of an ulterior motive aimed at self advancement or revenge, for instance, would lead to a conclusion of lack of good faith.[3](Own emphasis)

[20] During cross-examination it transpired that despite all the concerns that the applicant had, she was aware of the internal grievance procedure to be followed but she opted not to use one,

Kroukam v SA Airlink (Pty) Limited (2005) 12 BLLR 1172 (LAC), at para 28.

an evidentiary burden lies with such dismissed employee to show that there is a legitimate claim for automatically unfair dismissal

Govan v Skidmore[1952] 1 All SA 54 (N)

[27] In this matter, I must take into account that the test is one of balance of probabilities, in that a party whose version of facts appears to be more probable is entitled to an order, and that if there is an issue that has to be decided based on an inference, a court has to select a conclusion which seems to be the more natural, or plausible, conclusion from among several considerable ones, even though that conclusion be not the only reasonable one

SA Municipality Workers Union National Fund v Arbuthnot (2014) 25 ILJ 2434 (LAC), at para 15.

the respondent says the applicant acted mala fide as she presented the information to the FSB being motivated by being vindictive. I have to remind myself that the issue is about the reasonableness of the belief, not of the reasonableness of the information disclosed.

Mbethe v United Manganese of Kalahari (Pty) Limited (503/2016) [2017] ZASCA 67; 2017 (6) SA 409 (SCA) (30 May 2017).

good faith based on the state of mind using inference said,[20] In our law it would not be a matter of mere assertion by an applicant that he possesses the requirement of good faith. Although the test for good faith is subjective, relating as it does to the state of mind of an applicant, it is nevertheless subject to an objective control. The state of mind of an applicant has to be determined by drawing inferences from the objective facts, as revealed by the evidence.[21] The appellant states that he has acted in good faith in order to protect the interests of the respondent. The Respondent denies this and alleges that the appellant lacks an honest purpose in seeking leave to institute a derivative action in the name and on behalf of, the respondent. The dispute is whether the appellant has misrepresented his state of mind.

Communication Workers Union v Mobile Telephone Network (Pty) Ltd and another ZALC 59 (26 May 2003) (2003) ,24 ILJ 1670 (LC) (MTN) at para 21, where Van Niekerk AJ of this Court said: The disclosure must also be made in good faith. An employee who deliberately sets out to embarrass or harass an employer is not likely to satisfy the requirements of good faith. (Own emphasis)

However, as I have noted, the protection extended to employees by the PDA is not unconditional. The PDA sets the parameters of what constitutes a protected disclosure, as well as the manner of permissible disclosure by workers. The definition of disclosure clearly contemplates that it is only the disclosure of information that either discloses or tends to disclose forms of criminal or other misconduct that is the subject of protection under the PDA. The disclosure must also be made in good faith. An employee who deliberately sets out to embarrass or harass an employer is not likely to satisfy the requirement of good faith. It does not necessarily follow though that good faith requires proof of the validity of any concerns or suspicions that an employee may have, or even a belief that any wrongdoing has actually occurred. The purpose of the PDA would be undermined if genuine concerns or suspicions were not protected in an employment context even if they later proved to be unfounded. There is no doubt why disclosures made in general circumstances require in addition to good faith a reasonable belief in the substantial truth of the allegation. However more extensive the rights established by the PDA might be in the employment context, I do not consider that it was intended to protect what amounts to mere rumours or conjecture.

SA Municipality Workers Union National Fund v Arbuthnot (2014) 35 ILJ 2434 (LAC)

Good faith, in my view, entails in part that there should be no ulterior motive, revenge or malice in making the disclosure. It is common cause that the respondent did not claim protected disclosure at the disciplinary hearing and that her reliance on protected disclosure only surfaced for the first time during the proceedings before the Labour Court. The inference that the appellant wants this Court to draw is that the reliance on the protected nature of the disclosure was more of an afterthought, in an attempt to downplay the tendency of the respondent to disregard the employers instruction. [21]AndIn addition, it is also a requirement that the party making the disclosure intends thereby for the wrong disclosed to be remedied, or addressed, in some way.[22]

Abuse of act by employee

JA36/2018

National Institute for the Humanities and Social Sciences (NIHSS) v Lephoto and Another (JA36/2018) [2019] ZALAC 65; [2020] 3 BLLR 257 (LAC) (12 September 2019)

[6]...was a clear nexus between this disclosure and his dismissal which had resulted in an occupational detriment as defined in the PDA. ..[32]...first question that has to be answered in the affirmative in order for respondents case to be justified is whether there was a protected disclosure as defined in the PDA...[34] The key question in the present case is whether respondent had a reason to believe

[49]...However, the PDA was not enacted to encourage employees, whose own conduct renders them liable to dismissal, to exploit this legislation in a desperate attempt to fend of the inevitable consequences of their own actions or performance. That the PDA should be interpreted generously in order to vindicate its purpose is one thing, but in a case such as the present, where the facts are overwhelmingly in support of the conclusion that its provisions were abused, the court should have no truck with an attempt to invoke its protection.

good faith

JS557/12

Ndzuta v South African Police Services and Another (JS557/12) [2017] ZALCJHB 68 (23 February 2017)

Employee alleging unfair discrimination and occupational detriments as reasons for his dismissal ; evidence showing that employees allegation unfounded and based on hearsay; employee failing to prove that he suffered either occupational detriment or unfair discrimination. Evidence proving that employee unhappy to be managed by people less qualified than him. Employee failing to establish a causal link between the alleged disclosure and his dismissal. Employees claim dismissed.

Radebe and Another v Premier, Free State Province and Others (2012) 33 2353 (LAC) at paras 35 and 36.

[35] There is further, in my view, an overlap when determining whether the employee making the disclosure was acting in good faith and further whether he had the requisite reason to believe when making a disclosure that improprieties had been committed or were continuing. Honesty plays a pivotal role in both situations. Whilst good faith and honesty may conceivably amount to the same thing, I am of the view that a case by case approach is the proper one for a court considering these issues. Factors such as reckless abandon, malice or the presence of an ulterior motive aimed at self advancement or revenge, for instance, would lead to a conclusion of lack of good faith. A clear indicator of lack of good faith is also where disingenuity is demonstrated by reliance on fabricated information or information known by the employee to be false. The absence of these elements on the other hand is a strong indicator that the employee honestly made the disclosure wishing for action to be taken to investigate it.[36] Simply stated if an employee discloses information in good faith and reasonably believes that the information disclosed shows or tends to show that improprieties were committed or continue to be committed then the disclosure is one that is protected. The requirement of reason to believe cannot be equated to personal knowledge of the information disclosed. That would set so high a standard as to frustrate the operation of the PDA. Disclosure of hearsay and opinion would, depending on its reliability, be reasonable. A mistaken belief or one that is factually inaccurate can nevertheless be reasonable, unless the information is so inaccurate that no one can have any interest in its disclosure. (See also the statement in Babula (supra) at para 41 where it was held that: Darnton seems to me clear authority for the proposition that whilst an employee claiming the protection of ERA 1996, section 43(1) must have a reasonable belief that the information he is disclosing tends to show one of more of the matters listed in section 43B(1)(a) to (f), there is no requirement upon him to demonstrate that his belief is factually correct; or, to put the matter slightly differently, his belief may still be reasonable even though it turns out to be wrong.) If the primary or exclusive purpose of reporting is to embarrass or harass the employer the reasonableness of the employee's belief is also questionable. (Footnotes omitted)

JS274/16

Lephoto v National Institute for Humanities and Social Sciences and Another (JS274/16) [2017] ZALCJHB 442 (22 November 2017)

3. The first respondent, the National Institute for Humanities and Social Sciences, is ordered to pay the applicant 12 months compensation, an equivalent of 12 months salary subject to statutory deductions payable within 30 days from the date of this order.

Tshishonga v Minister of Justice and Constitutional Development and Another 2007 (4) SA 135 (LC); [2007] 28 ILJ 195 (LC) at para 176.

[176] The PDA is conceived as a four-staged process that begins with an analysis of the information to determine whether it is a disclosure. If it is, the next question is whether it is protected. The third stage is to determine whether the employee was subjected to any occupational detriment and lastly, what the remedy should be award for such treatment. It is not an enquiry into wrongdoing about whether the employee deserves protection. Structured in this way the inclination to shift the emphasis from the conduct and credibility of the wrongdoer to that of the whistle-blower is real.

Malan v Johannesburg Philharmonic Orchestra (JA61/11) [2013] ZALAC 24 (12 September 2013 at para 29.

There must be a disclosure; the disclosure must be made in good faith; the disclosure must concern an impropriety, either a criminal offence or that a person has failed, is failing or is likely to fail to comply with any legal obligation to which that person is subject; it must be reasonable for the employee to make the disclosure; and, that one or more of the conditions referred to in subsection 9(2) must be satisfied for present purposes, any one of them is sufficient. Where the disclosure is made to the employer subsection (c) which is relevant for the present purposes provides that the employee making the disclosure must have previously made a disclosure of substantially the same nature to his or her employer.

CWU v Mobile Telephone Networks (Pty) Ltd (2003) 24 ILJ 1677 (LC) at para 21.

tends to show"

JS287/2012

Dorey v TSB Sugar RSA Ltd (JS287/2012) [2017] ZALCJHB 168 (3 May 2017)

Radebe and Another v Premier, Free State Province and Others [2012] (5) SA 100 (LAC); [2012] 33 ILJ 2353 (LAC); [2012] BLLR 1246 (LAC) at para 33

The phrase tends to show in section 1 cannot be equated to show. Had the legislature intended the approach propounded by the Labour Court, it would have used only the term show. The phrase tends to show properly interpreted means that the information in the disclosure conveyed a suggestion of an impropriety or conduct that may have taken place or might be continuing. I do not understand the provision itself to include a requirement that what is conveyed must be factually accurate or be the truth. If the employee believes that the information is true it would fortify the reasonableness of his belief from which, in turn, his bona fides can be inferred. (Footnote omitted.)

[35]In line withRadebeI need not concern myself with the truthfulness and or accuracy of the allegations.

City of Tshwane Metropolitan Municipality v Engineering Council of SA and Another(2010) 31 ILJ 322 (SCA) at para 42.

Having concluded that the applicant has made a disclosure, I need to determine whether such a disclosure wasbona fideor not.

The court rejected the employers contention that the information was of a sensitive nature and that this is itself rendered the employment relationship intolerable. Would seriously erode the very protection that the legal framework endeavoured to grant to whistleblowers. Disclosure made by the employee was made in good faith and fell into the category of protected disclosure.
The court proposed that a useful and practical approach to determine this was to consider factors such as: (a) the timing of the disciplinary enquiry; (b) the reasons given by the employer for taking the disciplinary steps; (c) the nature of the disclosure; and (d) the persons responsible within the employer for taking the decisions to institute charges.
State of toilets at large academic hospital could not form the basis of a protected disclosure. The Internet was, unlike the press, not subject to editorial moderation. Disclosure could not be said to have been reasonable.
Placing him in an unproductive and meaningless post, meant that other staff would have understood him to have been sidelined and respect for him would have diminished, as he had picked up from remarks to the effect that he was being paid for doing nothing. Compensation in the amount of R100,000.
Grant order suspending enquiry to prevent greater prejudice to employee than department. Established a prima facie right that an occupational detriment had been committed. Should the disciplinary charges go ahead before the PDA dispute was adjudicated was greater than the financial prejudice to the department of keeping the applicant on paid suspension.
General requirements for a disclosure to be protected:

General requirements for a disclosure to be protected: there had to be a disclosure; the disclosure had to be made in good faith; the disclosure had to concern an impropriety, either a criminal offence or that a person had failed, was failing or was likely to fail to comply with any legal obligation to which that person was subject; it had to be reasonable for the employee to make the disclosure; and, that one or more of the conditions referred to in s 9(2) had to be satisfied. Biut, Late or fractured payments to employees or service providers were not a serious impropriety. Dismissed.

Interdict, would suffer irreparable harm if the disciplinary enquiry proceeded and in any event she had an alternative remedy located in s 4(2)(b) of the Act.
disclosure

protection

Employer

defined in terms of section 1 of LRA

s 4(2)(a) of the Protected Disclosures Act 26 of 2000

Disclosure, it was not necessary for the applicant to show that there was an actual breach of a legal obligation, merely that heThese Summaries may not be copied or forwarded without permission from Siber Ink CChad reason to believe that the information showed or tended

acted in good faith and had a reasonable belief that much of the information was substantially true

Retrenched

. The employer referred to Sikhosana & Others v Sasol Synthetic Fuels ((2000)21 ILJ; [2002]1 BLLR 95(LAC)) and submitted that fair retrenchment did not entail a mechanical compliance with s 189 of the Act

reasonable inference that could be drawn was that Ms Pedzinsky was dismissed because of her protected disclosure. Held therefore that the decision to retrench was a sham and the dismissal automatically unfair

Interdict

Prima facie right: Whether Disclosure made bona fide , Whether disclosures protected , Whether pending disciplinary linked to disclosure; Balance of convenience; Absence of alternative remedy ; occupational detriment

Member of parliament

158(2)(a)

Test remained whether the person making disclosure was acting in good faith and whether that person reasonably believed that there was an impropriety.

To Public prosecutor

Was disclosure, was protected and suffered occupational detriment

disclosed contents of legal opinion to unions benefits officer

Protected

s 15 of the Protected Disclosures Act 26 of 2000.
Whistleblowers

E/r duty to begin, exclude sec 5

Parity principle
lis alibi pendens

JR483/14

Shongwe and Others v City of Johannesburg Metropolitan Municipality (JR483/14) [2016] ZALCJHB 67 (25 February 2016)

Caesarstone Sdot-Yam Ltd v The World of Marble and Granite 2000 CC and Others 2013 (6) SA 499 (SCA)

As its name indicates, a plea of lis alibi pendens is based on the proposition that the dispute (lis) between the parties is being litigated elsewhere and therefore it is inappropriate for it to be litigated in the court in which the plea is raised. The policy underpinning it is that there should be a limit to the extent to which the same issue is litigated between the same parties and that it is desirable that there be finality in litigation. The courts are also concerned to avoid a situation where different courts pronounce on the same issue with the risk that they may reach differing conclusions. It is a plea that has been recognised by our courts for over 100 yearsAnd,The plea bears an affinity to the plea of res judicata, which is directed at achieving the same policy goals. Their close relationship is evident from the following passage fromVoet44.2.7:2'Exception of lis pendens also requires same persons, thing and cause.-The exception that a suit is already pending is quite akin to the exception of res judicata, inasmuch as, when a suit is pending before another judge, this exception is granted just so often as, and in all those cases in which after a suit has been ended there is room for the exception of res judicata in terms of what has already been said. Thus the suit must already have started to be mooted before another judge between the same persons, about the same matter and on the same cause, since the place where a judicial proceeding has once been taken up is also the place where it ought to be given its ending.'

In our common law the requirements for res iudicata are threefold: (a) same parties, (b) same cause of action, (c) same relief. The recognition of what has become known as issue estoppel did not dispense with this threefold requirement. But our courts have come to realise that rigid adherence to the requirements referred to in (b) and (c) may result in defeating the whole purpose of res iudicata. That purpose, so it has been stated, is to prevent the repetition of lawsuits between the same parties, the harassment of a defendant by a multiplicity of actions and the possibility of conflicting decisions by different courts on the same issue (see eg Evins v Shield Insurance Co Ltd1980 (2) SA 814 (A) at 835G). Issue estoppel therefore allows a court to dispense with the two requirements of same cause of action and same relief, where the same issue has been finally decided in previous litigation between the same parties

Appeal-reinstate, Arbitrate-dismissed
Nature of dispute
poor work performance and misconduct

vast difference

Mutual interest vs rights issue
J 3424 / 18

J & L Lining (Pty) Ltd v National Union of Metalworkers of South Africa and Others (J 3424 / 18) [2018] ZALCJHB 409; (2019) 40 ILJ 1289 (LC) (10 December 2018)

Pikitup (SOC) Ltd v SA Municipal Workers Union on behalf of Members and Others

" the phrase 'any matter of mutual interest' defies precise definition. The phrase is couched in very wide terms. According to Grogan, the phrase is extremely wide, 'potentially encompassing issues of employment in general, not merely matters pertaining to wages and conditions of service. Grogan concludes, correctly in my view, that 'the best one can say, therefore, is that any matter which affects employees in the workplace, however indirectly, falls within the scope of the phrase ""matters of mutual interest"" and may accordingly form the subject matter of strike action'"

Interest dispute
Right vs interest dispute

JR741/16

Emfuleni Local Municipality v South African Local Government Bargaining Council and Others (JR741/16) [2019] ZALCJHB 367 (11 November 2019)

They seek to remain in the same jobs, with the same responsibilities, but to be graded at a higher level, with the financial rewards that grading at a higher level will bring. In Polokwane Local Municipality v SALGBC & others [2008] ZALC 29; [2008] 8 BLLR 783 (LC), Molahlehi J regarded a dispute where an employee sought to have her post upgraded as a dispute of interest. In the absence of any right to be appointed to the higher position or to have the post upgraded, the dispute was not arbitrable (at paragraph 26).

In Mashegoane v University of the North [2007] ZALC 53; [1998] 1 BLLR 73 (LC), a dispute that concerned the refusal by the senate of the university to appoint a lecturer to the position of dean of the faculty, where the court considered that the appointment to the post of dean would be one that would considerably elevate the employees status and encompass a greater degree of responsibility. On this basis, the court held that the dispute properly concerned a promotion. In the present instance, the employees do not seek appointment to another post, and certainly not one that confers greater responsibility or status.

The employees may have a claim under the Employment Equity Act on the basis of equal pay for the same or similar work, or work of equal value. But that is not the claim that they referred to arbitration. Alternatively, the applicants may have the election to press their demand by resorting to the exercise of the right to strike. But this is not a matter that I need decide.

Territorial jurisdiction of the CCM

JA45/14

Monare v South African Tourism and Others

there was no jurisdictional dispute before the CCMA at any stag....office does not have a separate corporate personality. It is part and parcel of the first respondent, which is one undertaking. The fact that the office was in London does not make it a different undertaking.

Genrec Mei criterion held:When all the facts of this matter are considered and the question is asked as to where the undertaking was carried on in which the respondent worked, the answer would be an easy one, namely Malawi!

Astral, the court a quo in the present case reasoned and concluded as follows: In the present instance, there is no such residual nexus with the South African office. The first respondent may be South African and they may have worked for an entity whose head office is located in South Africa but he was recruited overseas, his employment contract was concluded overseas, he was obliged to work overseas for an agreed fixed term with no right to return to South Africa and continue employment there on conclusion of that fixed term and he performed services only in the United Kingdom. He committed the acts of misconduct that resulted in his dismissal in the United Kingdom, his disciplinary hearing was held there, and he was given notice of dismissal there. In my view, in these circumstances the LRA has no territorial application. It follows that the first respondent had no right to refer his dispute to the CCMA and the CCMA had no right to entertain it.

Independent Police Investigative Directorate and Robert McBride v The Minister of Police Case number 6588/2015.

Dispute about interest not rights

Refusal of department to implement salary improvements as no funds had been allocated for this purpose

Information
Letter of demand

J2237/16

Incledon (Pty) Limited and Others v Slabbert and Others (J2237/16) [2017] ZALCJHB 164 (5 April 2017)

King Williams Town v Border Alliance Taxi Association 2002 (4) SA 152 (ECD)

[11] One of the fundamental rules of fairness that underlies the courts rules of procedure and evidence is that litigants should be warned in advance of points being taken against them. The very purpose of a letter of demand is to avoid litigation, amongst other things, by affording a party the opportunity to respond to all of the material allegations articulated in the demand....This is not to suggest that a response to a letter of demand ought to assume the particularity of a pleading what is required is at least that the material allegations made be addressed with sufficient particularity to enable an applicant to decide whether to take the next step of initiating litigation.

Other case law cited

Chirwa v Transnet Ltd and others 2008 (4) SA 367 (CC)

[t]he mere fact that Transnet is an organ of State which exercises public power does not transform its conduct in terminating the applicants employment contract into administrative action.

138/08

Kriel v The Legal Aid Board & Others

even if termination took place by organ of state exercising public power; not administrative action; other remedies available

Rely on Lra not PAIA for access to information
Definition
Locus Standi

J2305/16

National Regulator for Compulsory Specifications v Mazibuko (J2305/16) [2019] ZALCJHB 26 (20 February 2019)

Tulip Diamonds FZE v Minister for Justice and Constitutional Development and Others 2013(10 BCLR 1180 (CC) at para 27

[7] Locus standi means a right to prosecute. Under common law, this doctrine requires that a party must have a personal and direct interest in the matter before the court.[9] In terms of the Constitution[10] (a) anyone acting in their own interest and/or (d) anyone acting in the public interest, may approach a competent court asking for an order, if it is under the belief that its rights have been violated or threatened.

novation

J2898/18

Betterbond (Pty) Ltd and Another v Smit and Another (J2898/18) [2018] ZALCJHB 318 (5 October 2018)

National Health Laboratory Service v Lloyd-Jansen van Vuuren [2015] ZASCA 20; 2015 (5) SA 426 (SCA) at paras 16 to 17.

[15] There is a presumption against novation because it involves a waiver of existing rights. When parties novate they intend to replace a valid contract with another valid contract. In determining whether novation has occurred, the intention to novate is never presumed. In Acacia Mines Ltd v Boshoff,[4] the court held that novation is essentially a question of intention.[16] In Proflour (Pty) Ltd & another v Grindrod Trading (Pty) Ltd t/a Atlas Trading and Shipping & another[5] the court, when determining whether the agreement resulted in a novation, referred to the decision of Electric Process Engraving and Stereo Co v Irwin 1940 AD 220 at 226-227 where the court said:The law on the subject was clearly enunciated as far back as 1880 in the well-known case of Ewers v The Resident Magistrate of Oudtshoorn and Another, (Foord) 32, where DE VILLIERS, C.J, said: The result of the authorities is that the question is one of intention and that, in the absence of any express declaration of the parties, the intention to effect a novation cannot be held to exist except by way of necessary inference from all the circumstances of the case. It follows that in order to establish whether novation has occurred, the court is entitled to have regard to the conduct of the parties, including any evidence relating to their intention.

doctrine of waiver

J3093/18

Maluleke v Greater Giyani Local Municipality and Others (J3093/18) [2018] ZALCJHB 456; (2019) 40 ILJ 1061 (LC) (4 October 2018)

Administrator, Orange Free State v Mokopanele and Others (1920) 11 ILJ 963 AD at p 968.

before a party can be held to have surrendered his right, he must know of his right. A similar approach was adopted some four years later in Laws v Rutherford[1924 AD 261] where the Court held that before a waiver can be upheld, it must be demonstrated that the person who is alleged to have waived his or her right knew that he or she was waving her right. It logically follows then that in order to constitute waiver, the relevant conduct of the party alleged to have waived the right must be clearly inconsistent with the exercise of the right alleged to have been waived.

rationality and reasonableness

J34/2017

Nyamane v MEC: Free State Department of Health (J34/2017) [2018] ZALCJHB 455; [2019] 12 BLLR 1371 (LC) (31 August 2018)

has been confirmed that rationality and reasonableness are conceptually different

Albutt v Center for the Study of Violence and Reconciliation and others 2010 (3) SA 293 (CC).

The Executive has a wide discretion in selecting the means to achieve its constitutionally permissible objectives. Courts may not interfere with the means selected simply because they do not like them, or because there are other more appropriate means that could have been selected. But, where the decision is challenged on the grounds of rationality, courts are obliged to examine the means selected to determine whether they are related to the objective sought to be achieved. What must be stressed is that the purpose of the enquiry is to determine not whether there are other means that could have been used, but whether the means selected are rationally related to the objective sought to be achieved. And if, objectively speaking, they are not, they fall short of the standard demanded by the Constitution.

Minister of Defence and Military Veterans v Motau 2014 (8) BCLR 930 (CC)

[69] The principle of legality requires that every exercise of public power, including every executive act, be rational. For the exercise of public power to meet this standard it must be rationally related to the purpose for which the power was given

peremption

JR957/2014

Bidair Services (Pty) Ltd v Mbhele and Others (JR957/2014) [2016] ZALCJHB 161; (2016) 37 (ILJ) 1894 (LC) (27 January 2016)

the applicant expressly and unequivocally, unconditionally and unreservedly acquiesced in the Award when it offered Mashishi the alternative positions of baggage handler and cleaner

InNUMSA & others v Fast Freeze (1992) 13 ILJ 963 (LAC) at page 969.

'If a party to a judgment acquiesces therein, either expressly, or by some unequivocal act wholly inconsistent with an intention to contest it, his right of appeal is said to be perempted, ie he cannot thereafter change his mind and note an appeal. Peremtion is an example of the well-known principle that one may not approbate and reprobate, or, to use colloquial expressions, blow hot or cold, or have one's cake and eat it.'

nDabner v South African Railways & Harbours 1920 AD 583 at para 594.

'The rule with regard to peremption is well settled, and has been enunciated on several occasions by this Court. If the conduct of an unsuccessful litigant is such as to point indubitably and necessarily to the conclusion that he does not intend to attack the judgment, then he is held to have acquiesced in it. But the conduct relied upon must be unequivocal and must be inconsistent with any intention to appeal. And theonusof establishing that position is upon the party alleging it. In doubtful cases acquiescence, like waiver, must be held non-proven.'

double jeopardy

JA118/13

Mahlakoane v South African Revenue Service (JA118/13) [2018] ZALAC 1 (25 January 2018)

those that the appellant was charged with in the first disciplinary hearing and those she was charged with in the second hearing, were clearly distinguishable from each other

BMW (SA) (Pty) Ltd v Van der Walt(2000) 21 ILJ 113 (LAC);Branford v Metro Rail Services (Durban) and Others(2003) 24 ILJ 2269 (LAC) and the helpful and insightful discussion of the topic in J Grogan Workplace Law(2007) pp 200-204.

has, as its heart, fairness and this rule or principle simply entails that an employee cannot, generally, be charged again with the same misconduct that he or she was either found guilty or not guilty of. However, there are instances where breaches of this rule or principle can be condoned. The paramount consideration, however, is fairness to both sides

The misconduct was of a very serious nature and involved calculated acts of dishonesty perpetrated by the appellant and Mr Setshedi. In those circumstances, the sanction of dismissal was clearly justified

"hire"

Demarcation of "hire"

Common law
if a litigants cause of action is a breach of an obligation provided for in the LRA, the litigant as a general rule, should seek a remedy in the LRA; Jurisdiction Labour Court

J1849/2019

DEMAWUSA and Others v City of Johannesburg (J1849/2019) [2019] ZALCJHB 368; (2020) 41 ILJ 912 (LC); [2020] 6 BLLR 574 (LC) (7 November 2019)

Steenkamp & others v Edcon Ltd (National Union of Metalworkers of SA intervening) (2016) 37 ILJ 564 (CC).

[137] The second basis for my conclusion is that the applicants appeal should be dismissed is a principle that, for convenience, I call LRA remedy for an LRA breach. The principle is that, if a litigants cause of action is a breach of an obligation provided for in the LRA, the litigant as a general rule, should seek a remedy in the LRA. It cannot go outside of the LRA and invoke the common law for a remedy. A cause of action based on a breach of an LRA obligation obliges the litigant to utilise the dispute resolution mechanisms of the LRA to obtain a remedy provided for in the LRA.

They clearly frame their claim on the basis of what they allege to be an unlawful suspension, and an unlawful deduction from remuneration, on the basis respectively of the breach of the collective agreement and s 34 of the BCEA.

[7] The effect of this judgment is that when an applicant alleges that a dismissal is unlawful (as opposed to unfair), that applicant has no remedy under the LRA and this court has no jurisdiction to make any determination of unlawfulness. If a remedy is sought under the LRA, the applicant must categorise the alleged unlawfulness as unfairness.

Mayo v Bull Brand Food (Pty) Ltd (2010) 31 ILJ 951 (LC) and Indwe Risk Services (Pty) Ltd v Hester Petronella van Zyl (2010) 31 ILJ 956 (LC)

[15] Turning next to the applicants claim of unlawful deductions, that claim must suffer a similar fate. The applicants base their claim on a breach of s 34 of the BCEA. That Act establishes its own mechanism for enforcement, one that requires (in most instances) that a complaint be lodged with a labour inspector. This court exercises a supervisory jurisdiction in respect of appeals form decision made ultimately by the director-general, or arbitration award issued by the CCMA. Absent a claim in contract, this court lacks jurisdiction to enforce the provisions of the BCEA as a court of first instance.

[16] In summary: the applicants claim of an unlawful suspension is not a claim contemplated by the LRA, and neither that Act nor any other statute confers jurisdiction on this court to make a determination of the lawfulness or validity of a suspension. In any event, the true nature of the suspension dispute is one that concerns the application of a collective agreement, a dispute that must be arbitrated. The claim of unlawful deductions from remuneration is one that must be pursued in terms of the enforcement mechanisms of the BCEA. Given my conclusion that in respect of both legs of the applicants claim this court lacks jurisdiction, it is not necessary for me to consider whether the applicants have been the requirements for final interdictory relief.

s 158(1B) of the LRA

J2055/19

South African Broadcasting Corporation (SOC) Limited v Commission for Conciliation Mediation and Arbitration and Others (J2055/19) [2019] ZALCJHB 318; (2020) 41 ILJ 493 (LC) (18 October 2019)

[12] ... The definition of dismissal in s 186 of the LRA expressly includes circumstances where the employer has terminated employment with or without notice. Whether the employer casts the termination in the contractual language of acceptance of the repudiation of a contract of employment and an election to cancel the contract, this is no more or no less than a termination of employment, with or without notice (i.e. a summary termination), which in turn, by definition, constitutes a dismissal for the purposes of s 186.

"[11] To the extent that Mr. van As, who represented the SABC, urged me at least to issue a directive in any ruling that I make that commissioner Du Plessis hear evidence on the jurisdictional point, something that the SABC says that he has refused to do. I fail to appreciate how such an order can be made in the context of what amounts to an application to stay an arbitration hearing pending a review of a jurisdictional ruling made by another commissioner. Control over arbitration proceedings (and the basis on which evidence is led) is best left to the presiding commissioner. It is not the function of this court to micro-manage arbitration hearings and issue directions to commissioners as to how they should conduct a hearing. In any event, as I have observed, some jurisdictional points (particularly those concerned with whether the referring party is an employee as defined in the LRA or whether any termination of employment constituted a dismissal) are best determined once all the evidence is in they need not be the subject of a discrete enquiry."

[11] To the extent that Mr. van As, who represented the SABC, urged me at least to issue a directive in any ruling that I make that commissioner Du Plessis hear evidence on the jurisdictional point, something that the SABC says that he has refused to do. I fail to appreciate how such an order can be made in the context of what amounts to an application to stay an arbitration hearing pending a review of a jurisdictional ruling made by another commissioner. Control over arbitration proceedings (and the basis on which evidence is led) is best left to the presiding commissioner. It is not the function of this court to micro-manage arbitration hearings and issue directions to commissioners as to how they should conduct a hearing. In any event, as I have observed, some jurisdictional points (particularly those concerned with whether the referring party is an employee as defined in the LRA or whether any termination of employment constituted a dismissal) are best determined once all the evidence is in they need not be the subject of a discrete enquiry.

Probation procedure: hearing

JR628/13

Frank v Commission for Conciliation, Mediation and Arbitration and Others (JR628/13) [2017] ZALCJHB 9 (17 January 2017)

A hearing in the circumstances does not entail a disciplinary hearing as one will expect in a case of misconduct, which the applicant contends his was the case, which contention has no merit in law or fact.

Contract of employment; No need common law since LRA; Apply common law save where conditions about unfairness dismissal

Only claim for reasonable notice

Buthelezi relied on his common law rights and not on an alleged unfair dismissal and therefore the Labour Court had jurisdiction to hear the matter and grant relief.
Collective agreement
interpretation dispute: section 24 of the LRA is to resolve disputes where a party to an agreement is alleged to have been in breach of the provisions of that agreement by failing to interpret or apply its terms

JR784/2016

Dioma and Another v Mthukwane N.O and Others (JR784/2016) [2020] ZALCJHB 138 (11 August 2020)

[36] In accordance with the provisions of section 23 of the Labour Relations Act, 1995 (LRA) collective agreements are binding on the parties. The purpose of section 24 of the LRA is to resolve disputes where a party to an agreement is alleged to have been in breach of the provisions of that agreement by failing to interpret or apply its terms either correctly or at all.[20] The principles applicable to the resolution of such disputes are trite as restated in Western Cape Department of Health v Van Wyk & others.[(2014) 35 ILJ 3078 (LAC) at para 22. See also North East Cape Forests v SAAPAWU and others [1997] 6 BLLR 711 (LAC); Food and Allied Workers Union v Commission for Conciliation, Mediation and Arbitration & o'thers (2007) 28 ILJ 382 (LC), at para 35] These are that:i. When interpreting a collective agreement, the arbitrator is enjoined to bear in mind that a collective agreement is not like an ordinary contract, and he/she is therefore required to consider the aim, purpose and all the terms of the collective agreement; ii. The primary objects of the LRA are better served by an approach which is practical to the interpretation of such agreements, namely to promote the effective, fair and speedy resolution of labour disputes. In addition, it is expected of the arbitrator to adopt an interpretation and application that is fair to the parties.iii. A collective agreement is a written memorandum which is meant to reflect the terms and conditions to which the parties have agreed at the time that they concluded the agreement.iv. The courts and arbitrators must therefore strive to give effect to that intention, and when tasked with an interpretation of an agreement, must give to the words used by the parties their plain, ordinary and popular meaning if there is no ambiguity. This approach must take into account that it is not for the Courts or arbitrators to make a contract for the parties, other than the one they in fact made;[22]v. The parol evidence rule when interpreting collective agreements is generally not permissible when the words of the memorandum are clear.vi. Collective agreements are generally concluded following upon protracted negotiations, and it is expected of the parties to those agreements to remain bound by their provisions. It therefore follows that such agreements cannot be amended unilaterally.

Agency fees deductible from employees identified in the collective agreement consonant with the Constitution and ILO recommendations.

CA6/2019

Municipal and Allied Trade Union of South Africa (MATUSA) v Central Karoo District Municipality and Others (CA6/2019) [2020] ZALAC 20; (2020) 41 (ILJ) 1918 (LAC); [2020] 9 BLLR 896 (LAC) (28 May 2020)

jurisdiction: the Metal and Engineering Industries Bargaining Council (MEIBC) or within the jurisdiction of the Motor Industry Bargaining Council (MIBCO).

PA6/19

National Union of Metalworkers of South Africa v Commission for Conciliation Mediation and Arbitration and Others (PA6/19; PR03/18 ; PR50/18) [2020] ZALAC 8; (2020) 41 ILJ 1629 (LAC) (18 February 2020)

agency shop

J1338/19

UASA and Others v Western Platinum Limited and Others (J1338/19) [2019] ZALCJHB 158; (2019) 40 ILJ 2405 (LC); [2019] 11 BLLR 1283 (LC) (24 June 2019)

agency shop agreement invalid and unenforceable, agency shop agreement must expressly provide for matters prescribed by s 25(3) of the LRA

Solidarity and Others v Minister of Public Service and Administration (J648/03) [2003] ZALC 122 (21 April 2004).

In my view the agreement substantially complied with statutory requirementsHowever this does not make the agreement valid for reasons that the agency agreement interferes with a persons constitutional right of freedom of association as contained in section 18 of Chapter 2 of the Bill of Rights. It therefore becomes an unfair labour practice to force the employee to join a trade union by making deductions on his salary to make him join the union. The legislature was aware of this and therefore sought to provide that the agreement should make provision for the fact that non-union members are not compelled to become members. This is a fundamental requirement necessary to make the agreement valid.[8]

Solidarity and Others v Minister of Public Service and Administration

amendment not rectified

JA11/17

Solidarity obo Members employed in motor industry v Automobile Manufacturers Employers Organisation (AMEO) and Others (JA11/17) [2019] ZALAC 63; [2020] 2 BLLR 142 (LAC); (2020) 41 ILJ 419 (LAC) (16 October 2019)

agency shop agreement is a collective agreement which could be amended and not rectified - Rectification is a remedy designed to correct the failure of a written contract to reflect the true agreement between the parties to the contract.

freshold imposed by collective agreement

JA40/2018

Murray and Roberts (Pty) Ltd v Commission for Conciliation, Mediation and Arbitration and Others (JA40/2018) [2019] ZALAC 58; [2019] 11 BLLR 1224 (LAC); (2019) 40 ILJ 2510 (LAC) (20 August 2019)

SACOSWU [2017] 9 BLLR 905 (LAC)

Section 18

[28] In SACOSWU on appeal the majority in the Constitutional Court held that majority trade union parties (and employers) could not, by entering into private threshold agreements contemplated in section 18 of the LRA and which were not laws of general application, limit a trade unions (and accordingly its members) right to engage in collective bargaining.[15] Accordingly, such a private threshold agreement could also not preclude a minority trade union from bargaining with the employer about organisational rights. Section 18 of the LRA does not authorise majority unions and employers from determining which constitutional rights other unions, which were not parties to the threshold agreement, may exercise.

Section 20

Section 20 of the LRA also declares expressly that nothing in part A of Chapter III (being the place in the LRA where section 18 is located) precludes the conclusion of a collective agreement that regulates organisational rights. Thus, not even a threshold agreement concluded between an employer and a majority union, or unions.[17]

section 23

Although section 23 of the LRA is not located in the position of the LRA referred to in section 20, it also does not preclude a collective agreement between an employer and a minority union regulating organisational rights where there is an existing threshold agreement in place between an employer and a majority trade union regulating those rights.[18]

organisational rights in section 12, 13 and 15

First, it may acquire those rights if it meets the threshold set in the collective agreement between the majority union and the employer. In that event, a minority union does not have to bargain before exercising the rights in question. Second, such a union may bargain and conclude a collective agreement with an employer in terms of which it would be permitted to exercise the relevant rights. Third, a minority union may refer the question whether it should exercise those rights to arbitration in terms of section 21 (8C) of the LRA. If the union meets the conditions stipulated in that section, the arbitrator may grant it organisational rights in the relevant provisions.[19]

Different time periods from LRA

JA19/18

Appels v Education Labour Relations Council (ELRC) and Others (JA19/18) [2019] ZALAC 49; [2019] 10 BLLR 985 (LAC); (2019) 40 ILJ 2284 (LAC) (10 July 2019)

[5]...collective agreements concluded in bargaining councils that regulate dispute resolution should be given primacy because section 51 of the LRA empowers bargaining councils to establish procedures to resolve disputes and in doing so, to design their own procedures that address the exigencies of the sector for which they are registered and to ensure efficient and cost-effective dispute resolution, and that these procedures may deviate from those established by the LRA.

Section 24(1)

DA1/2015

Hospersa obo Tshambi v Department of Health, KwaZulu-Natal (DA1/2015) [2016] ZALAC 10; [2016] 7 BLLR 649 (LAC); (2016) 37 (ILJ) 1839 (LAC) (24 March 2016)

NUCW v Oranje Mynbou en Vervoer Maatskappy Bpk [2000] 2 BLLR 196 (LC) at paras 8 9

Whether a dispute about the application of a collective agreement, referred to in section 24(1) of the Act, would include the enforcement of a collective agreement when it is breached, is a further question which needs to be decided.Enforcement of an agreement only becomes an issue when there is some form of non-compliance with that agreement. When a party wishes to enforce the agreement it would be, at leastinteralia,because it believes the agreement is applicable to the party who is in breach thereof. Therefore a dispute about the application of a collective agreement (section 24(1) of the Act) applies to the situation where there is non-compliance with a collective agreement and one of the parties wishes to enforce its terms. Consequently, the CCMA, and not the Labour Court, should entertain disputes arising from the non-compliance with collective agreements.

t seems plain that the notion of enforcement articulated by Revelas J was of a step thatfollowed uponthe applicability of the collective agreement being proven, rather than a facet of the notion of application.

There is accordingly no need nor any justification to understandsection 24in a sense so broad that any alleged breach of a term of a collective agreement means the dispute automatically falls withinsection 24.

collective agreement that regulates organisational rights

JA87/2015

South African Correctional Services Workers Union (SACOSWU) v Police and Prisons Civil Rights Union (POPCRU) and Others (JA87/2015) [2017] ZALAC 30; [2017] 9 BLLR 905 (LAC); (2017) 38 ILJ 2009 (LAC) (31 May 2017)

On appeal: the decision of the Labour Court was set aside on the basis that s 20 provides that nothing in Part A of Chapter III, which must include a s 18(1) threshold agreement, precludes the conclusion of a collective agreement that regulates organisational rights. This accords with the recognition that minority unions are entitled to have access to the workplace so as to challenge the hegemony of majority unions, at least to represent their members. On the same basis, the deduction of trade union subscriptions for a limited period was permissible. The appeal was consequently upheld with costs.

Bargaining council: ULP referral reduced from 90 to 30 days

J2264/17

Appels v Education Labour Relations and Others (J2264/17) [2017] ZALCJHB 428; (2018) 39 ILJ 816 (LC) (7 November 2017)

the key to a proper interpretation of s 51 (9) of the LRA is an understanding of the role of bargaining councils in the statutory dispute resolution system. Bargaining councils are voluntary bodies and operate according to the principles of self-regulation and autonomy. Having said that, bargaining councils are creatures of statute and may act only within the confines of the empowering legislation. The question to ask is whether s 51 (9), which clearly empowers bargaining councils to establish procedures to resolve any dispute, must be read subject to a condition that any agreed procedure must replicate time periods and any other limitations as they find reflection in the LRA. There is nothing in the LRA that establishes such a condition, or which otherwise places constraints on a bargaining council that agrees to establish dispute resolution procedures. On the contrary, there is at least one authority to support the proposition that bargaining councils may establish procedures that differ from those established by the LRA. [16]...This will ensure that procedures are rational, not arbitrary and free from caprice or ulterior purpose. The reasons proffered by the bargaining council for truncating the periods within which promotion disputes must be referred are obviously rational, intended as they are to serve the legitimate ends of minimising disruptions to learning and the expeditious resolution of disputes.

MIBCO v Osborne & others [2003] 6 BLLR 573 (LC)

However, section 51 (9) permits a bargaining council to exclude the operation of the LRA in the circumstances contemplated in that subsection, by establishing its own procedures by means of a collective agreement, which obviously can be extended to non-parties. The collective agreement, such as those to which I have referred in this judgement, circumvent the operation of the LRA.

Wanenburg v Motor Industry Bargaining Council & others (2001) 22 ILJ 242 (LC)

[20] Bargaining councils may design their own dispute systems in ways that ensure efficient and cost effect (sic) resolution and prevention of disputes. From the DRC terms of reference and procedures, there is nothing inherently prejudicial to nonparties. It provides a procedure for conciliation and arbitration of disputes and for granting combinations. It is consistent with the LRA. There is therefore no reason for the court to interfere by imposing any other procedure.[21] in the circumstances the DRC terms of reference and procedures can be applied to nonparties not as a collective agreement but as a procedure developed by the bargaining council for the industry in order to give effect to its obligations in terms of ss 51 (3) and 191 (2) in order to carry out its functions in terms of s 28 (1) (c) and (d).[23] Firstly, bargaining councils must be allowed the flexibility to design their own dispute systems so that the most inexpensive and effective procedures are adopted. If that means having a condonation application followed by an internal appeal, so be it. Even if the NRA makes no express provision for such an appeal, it would be consistent with the general policy of encouraging maximum use of private and internal dispute resolution mechanisms and the settlement of disputes at the lowest possible level.

Was about the fairness of the dispensation and that issue could not be the subject of arbitration proceedings.
Bargaining Council Arbitration

Own employment policy

Private Arbitration

Les favorable: no conciliation; cost order ito sect 35 Arbitration act

JA 52/10

National Bargaining Council for the Road Freight Industry and Another v Carlbank Mining Contracts (Pty) Ltd

Remuneration

Unfair discrimination

increase to non-union members provided not join union

Strike

Unions members not prohibited from striking if agreement has not yet been extended to them in terms of s 32

31, 32

Administrative law
section 17 of the PSA

DA9/16

Gangaram v MEC for the Department of Health, Kwazulu-Natal and Another (DA9/16) [2017] ZALAC 38; (2017) 38 ILJ 2261 (LAC); [2017] 11 BLLR 1082 (LAC) (13 June 2017)

Employee deemed dismissed in terms of section 17 of the PSA employee making representations for her reinstatement employer failed to respond employee implying that the failure to take a decision amount to a decision refusing her reinstatement susceptible to be set aside Held that the point of departure is whether the employee was properly deemed to have been dismissed that employer knew employees whereabouts as employee submitted leave forms as justification for each absence that in the absence of a refusal of the leave forms, employee rightly assuming that leave forms approved that the jurisdictional requirements for the employee to be deemed dismissed because of being absent for a period exceeding one calendar month without permission have not been satisfied, and as such there was no need for her to make representations in terms of s17(3)(b) for her reinstatement. Appeal upheld and Labour Courts judgment set aside employee reinstated retrospectively.

JR2395/14

Minister of Public Service and Administration and Another v Public Servants Association obo Makwela and Others (JR2395/14) [2017] ZALCJHB 414 (6 April 2017)

Public Servants Association of SA on behalf of de Bruyn v Minister of Safety and Security and Another (2012) 33 ILJ 1822 (LAC) at para 26.

The supposition that public servants had an extra string to their bow in the form of judicial review of administrative action, ie acts and omissions by the state vis--vis public servants, evaporated when the Constitutional Court in Chirwa v Transnet Ltd & others, held that the dismissal of a public servant was not 'an administrative act' as defined in PAJA and therefore not capable of judicial review in terms of that Act. Any uncertainty regarding the interpretation of the Chirwa judgment was removed in the subsequent decision in Gcaba v Minister for Safety & Security & others. The result is that a public servant is confined to the other remedies available to him or her.

PAJA

JA103/2015

Minister of Labour and Another v Public Services Association of South Africa and Another (JA103/2015) [2017] ZALCJHB 23 (25 January 2017)

Ministers reversal of designation of official as registrar of labour relations appointed in terms of S108(1) of the Labour Relations Act,no.66 of 1996 administrative action and reviewable in terms of thePromotionOf Administrative Justice Act, no.2 of 2000, Alternatively, the principle of legality in the constitutionnot established that registrar had duty to brief minister concerning specific matter registrar was dealing with in exercise of functionsRegistrar nevertheless found to have adequately briefed minister----Reversal of designation In circumstances confirmed to have been irrational and invalidDecision also confirmed to have been procedurally unfairReinstatement to position of registrar appropriate remedy---Appeal of Minister against judgment and order of labour court dismissed with costs.

Not available re grievance of State ee
Administrative action
the Equality Report suggests that socio-economic needs be considered within designated, vulnerable groups. In other words, affirmative action should continue to be implemented on the basis of race, gender and disability, given the persistence of current patterns of economic inequality. However, special measures should be targeted at vulnerable groups within apartheid-era classifications so as to recognise multiple forms of disadvantage that they continue to experience. In this context, the report recommends that the EEA be amended to target more nuanced groups on the basis of need, taking into account social and economic indicators.

J3092/18

Solidarity v Minister of Labour and Others (J3092/18) [2019] ZALCJHB 277; [2020] 1 BLLR 79 (LC); (2020) 41 ILJ 273 (LC) (8 October 2019)

the South African Human Rights Commission (SAHRC), issued a report entitled Achieving substantive economic equality through rights-based radical socio-economic transformation in South Africa (the Equality Report)...The report concludes, amongst other things, that the definition of designated groups in the EEA (broadly, the categories of persons who are beneficiaries of the affirmative action measures established by the EEA) is not in compliance with constitutional or international law obligations, and recommends that the EEA be amended to target more nuanced groups on the basis of need, and taking into account social and economic indicators.

Solidarity seeks only to have the findings and recommendations of the Equality Report given legal recognition and effect, at least until any reviewing court sets them aside. That being so, the court is not concerned with a direct challenge to the constitutionality of s 42 of the EEA

[27] In summary: There is no statutory or other regulatory provision that renders the Equality Report binding on government or any other party. The SAHRC itself does not intend the Report to be binding; it is a research report intended to contribute to the public discourse and to provide advice and guidance to government in fulfilling its constitutional obligations. Since the Equality Report is not binding on government or any other party, it follows that there is no basis on which this court is empowered to confirm or otherwise enforce the reports findings and recommendations for the purpose sought by Solidarity, or for any other purpose.

section 14(2) of the Employment of Educators Act[1] (the EEA)
Promotion of Administrative Justice Act, 3 of 2000.

J467/17

Sekano v Tiger Brands Ltd (J467/17) [2017] ZALCJHB 188 (6 March 2017)

Gcaba v Minister of Safety and Security and others(2010) 31ILJ296 (CC)

the law has been settled in favour of a single system of law, i.e. that created by the LRA.

Employment Equity Plan

J879/12

Solidarity v Minister of Safety and Security and Others (J879/12) [2016] ZALCJHB 15; (2016) 37 ILJ 1012 (LC); [2016] 5 BLLR 484 (LC) (26 January 2016)

Equity plan not implemented contrary to s 27(2) of SAPS Act Use of national demographics not in breach of s 195(1) of the Constitution

decision to dismiss an employee, even when taken by an organ of State, does not amount to administrative action that is reviewable,