Case Law[2025] ZALAC 21South Africa
Jansen Van Vuuren v Heaven Sent Gold SA (Pty) Ltd and Another (JA 75/23; JA 76/23) [2025] ZALAC 21; [2025] 6 BLLR 569 (LAC) (17 March 2025)
Labour Appeal Court of South Africa
17 March 2025
Headnotes
the necessary jurisdiction to determine the appellants’ claims in terms of section 77(3) of the Basic Conditions of Employment Act[1], which provides that: ‘The Labour Court has concurrent jurisdiction with the civil courts to hear and determine any matter concerning a contract of employment,
Judgment
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# South Africa: Labour Appeal Court
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## Jansen Van Vuuren v Heaven Sent Gold SA (Pty) Ltd and Another (JA 75/23; JA 76/23) [2025] ZALAC 21; [2025] 6 BLLR 569 (LAC) (17 March 2025)
Jansen Van Vuuren v Heaven Sent Gold SA (Pty) Ltd and Another (JA 75/23; JA 76/23) [2025] ZALAC 21; [2025] 6 BLLR 569 (LAC) (17 March 2025)
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sino date 17 March 2025
THE
LABOUR APPEAL COURT OF SOUTH AFRICA, JOHANNESBURG
Not
Reportable
Case
no:
JA75/2023
In
the matter between:
Johan
JANSEN VAN VUUREN
Appellant
and
HEAVEN
SENT GOLD SA (PTY) LTD
First Respondent
GRYPON
GOLD (PTY) LTD
Second Respondent
and
Case
no:
JA76/2023
In
the matter between:
JoanNé
JANSEN VAN VUUREN
Appellant
and
HEAVEN
SENT GOLD SOUTH AFRICA PROPERTY
&
INVESTMENT (PTY) LTD
First Respondent
HEAVEN
SENT GOLD BUSINESS TRUST
Second Respondent
Heard:
6 March
2025
Delivered:
17March 2025
Coram:
Savage AJP, Sutherland and Davis
AJJA
JUDGMENT
SAVAGE,
AJP
Introduction
[1]
In
issue in the two appeals before this Court, which are before us with
the leave of the Labour Court and are considered together
given the
commonality of facts and issues in dispute, is whether the Labour
Court held the necessary jurisdiction to determine
the appellants’
claims in terms of
section
77(3)
of the
Basic
Conditions of Employment Act
[1]
,
which
provides
that:
‘
The
Labour Court has concurrent jurisdiction with the civil courts to
hear and determine any matter concerning a contract of employment,
irrespective of whether any basic condition of employment constitutes
a term of that contract.’
[2]
At the outset of the hearing, the appellants sought that the
late filing of their respective appeal records be condoned, given the
challenges faced by them in having the appeal record prepared. The
application was not opposed, and the Court can find no reason
to
refuse such application having regard to the extent of the delay, the
reasons for it, the nature of the matter, interests of
justice and
considerations of prejudice. The appeal is therefore reinstated, and
the late filing of the record condoned.
Background
[3]
Mr Johan Jansen van Vuuren, referred to
as the first appellant, and Mrs Joanné Jansen van Vuuren,
referred to as the second
appellant, each entered into a ‘Termination
of Services and Settlement Agreement’ on 14 January 2021: the
first appellant
with Heaven Sent Gold Business Trust and Gryphon Gold
(Pty) Ltd (Gryphon Gold), the latter being the second respondent in
JA 75/2023
(the first appeal); and the second appellant with Heaven
Sent Gold Property & Investment (Pty) Ltd and Heaven Sent Gold
Business
Trust, being the first and second respondents in JA 76/2023
(the second appeal).
[4]
The settlement agreement entered into
with the first appellant records that:
4.1
his employment with Gryphon Gold
terminated with effect from 1 January 2020 (the termination date);
4.2
from 1 January 2020 until 15 January
2021, any services performed by him were performed in the capacity of
an independent contractor
through the Janse Van Vuuren Trust (the
Trust) and not as an employee;
4.3
that Gryphon Gold would pay the Trust an
amount equal to nine months’ contributions, in the amount of
R16 294,00, in respect
of the first appellant’s membership of
the medical aid scheme of which he was a member on the date of
termination of his
employment;
4.4
the first appellant will receive payment
of his normal monthly employee remuneration for the period until the
termination date,
together with 25 days accumulated leave pay due to
him as an employee, which will be paid within 14 days of the
termination date;
4.5
the first appellant will be paid an
independent contractor payment equal to R3 150 000,00, a first
tranche of R1 050 000 within
14 days of the termination date and a
second tranche of R2 100 000 on 21 February 2021.
[5]
The settlement agreement entered into
with the second appellant records similarly, save that:
5.1
her employment with Heaven Sent Gold Property and Investment Company
(Pty) Ltd terminated with
effect from 1 August 2020, from which date
she was to render services as an independent contractor until 15
January 2021;
5.2
she will be paid 23 days accrued leave due to her as at termination
of her employment;
5.3
she will be paid an amount equal to nine months’ contributions,
being R16 294,00, in respect
of her membership of the medical aid
scheme of which she was a member on the date of termination of her
employment; and
5.4
she will be paid an independent contractor payment equal to R1 350
000,00, with the first tranche
of R450 000 to be paid within 14 days
of the termination date and the second tranche of R900 000 to be paid
on 28 February 2021.
[6]
When the appellants were not paid the
amounts agreed, they approached the Labour Court to enforce payment.
The first appellant claimed
payment of a total amount of R3 868
374,00 and the second appellant a total amount of R1 946 273,35. The
first appellant contended
that the total amount due was made up of R3
150 000, being the independent contractor fee due in terms of the
agreement, his monthly
remuneration in the amount of R350 000, 25
days accumulated leave pay in the amount of R380 444,78 and R146 646
in relation to
nine months’ medical aid contributions. The
second appellant contended that the total amount due was made up of
R1 350 000,00,
being the independent contractor fee due in terms of
the agreement, her monthly remuneration in the amount of R150 000, 23
days
accumulated leave pay in the amount of R150 000 and R146 646 in
relation to nine months’ medical aid payments. Before the
Labour Court, both appellants abandoned the relief sought to have
their settlement agreements made an order of Court.
[7]
In opposing the relief sought, the
respondents took issue with the fact that the total amounts claimed
were precisely the amounts
reflected in invoices submitted by the
appellants, which were attached to their founding papers, in which
the payment sought was
described as a “(s)
ervice
fee as an independent contractor
”.
These amounts were unrelated to the employment relationship, with the
result that section 77(3) did not apply and the Labour
Court lacked
jurisdiction to determine the matters. It was submitted that a
genuine dispute of fact existed regarding the amounts
claimed, which
could not be resolved on the papers.
Judgment
of the Labour Court
[8]
The Labour Court found that the payment of normal monthly
employee remuneration and accrued leave until the termination of the
contract
of employment were claims arising from and concerning a
contract of employment and
were,
therefore, in terms of section 77(3), justiciable by the Court. The
claims for medical aid contributions were found, however, to
relate
to the period post-termination of employment during which the
appellants provided services as independent contractors and
were not
related to a contract of employment and were, therefore, not
justiciable.
[9]
The Labour Court granted judgment in favour of the first
appellant against Gryphon Gold (Pty) Ltd for the sum of R350 000 for
monthly
remuneration owed and R380 444,78 in respect of accrued
annual leave, with his other claims
dismissed
for want of jurisdiction. Judgment was granted in favour of the
second appellant against Heaven Sent Gold South Africa Property
and
Investment (Pty) Ltd, for R150 000 in respect of monthly remuneration
owed and R150 000 in respect of accrued annual leave
due, with her
other claims dismissed on the same basis. No order of costs was made
in either matter.
On
appeal
[10]
The appellants contend on appeal that the Labour Court erred
in dismissing their claims for payment of their services rendered
as
independent contractors
and in respect of agreed medical aid
contributions
. This was so in
that the
settlement agreements are agreements collateral to the employment
contract, since they had the effect of terminating the
employment of
the appellants and as such, amount to a “
matter concerning a
contract of employment
” as envisaged in section 77(3).
These claims were therefore argued to be justiciable by the Labour
Court since the entire
agreement concerned a contract of employment
as envisaged in section 77(3).
[11]
The respondents oppose the appeal on the basis that the
independent contractor fee and contribution to medical aid were not
claims
collateral to their employment contracts. This, it was argued,
was evident from the fact that the appellants’ employment
relationships
terminated
in January and
August 2020, and the settlement agreements with the appellants were
entered into in January 2021. In their cross-appeal,
the respondents
contend that a genuine dispute of fact existed in relation to the
quantum of the amounts
claimed and seek an
order that the Labour Court’s orders in respect of the payment
of monthly remuneration and accrued leave
be set aside. This, given
that
the appellants failed to plead that such remuneration had
not been paid and the amounts outstanding in respect of such
remuneration
or leave pay were not quantified. Instead, the
appellants invoiced the respondents for payment of an independent
contractor service
fee, the total amount of which invoices equals the
amount claimed in their respective notices of motion. As a result, it
was contended
that a genuine dispute of fact exists as to the amounts
owing to each appellant.
Evaluation
[12]
The
determination as to whether a matter concerns an employment contract
and therefore falls within the ambit of section 77(3) is
both fact
and context-dependent. A dispute that “
relates
to, is linked to, or connected with an employment contract
”
falls within the ambit of section 77(3),
[2]
as does an agreement terminating the employment contract.
[3]
However, where a number of distinct claims exist in an agreement,
each claim must be scrutinised to determine whether section 77(3)
applies or not.
[4]
The fact that
one claim may be justiciable does not make all claims recorded in an
agreement justiciable.
[13]
The appellants sought that a wide interpretation be afforded
to section 77(3) on the basis that the settlement agreement concluded
concerned the termination of employment, which created a sufficient
link to their contracts of employment. However, the settlement
agreement went further than simply resolving issues pertaining to the
appellants’ employment. It recorded the agreed terms
of an
independent contractor agreement entered into between the parties,
one which was clearly not concerned with the previous
employment
contracts
. In addition, it made
provision for payment of medical aid contributions subsequent to the
termination of the appellants’
employment, when such
contributions did not concern the appellants’ prior employment
contracts.
[14]
The
Labour Court correctly undertook a careful analysis of the terms of
the
settlement
agreement to determine which claims reflected in it were concerned
with the appellants’ employment contracts and which were
not.
This approach accorded with the express language of section 77(3),
which grants the Labour Court
jurisdiction, concurrent with the civil courts, “
to
hear and determine any matter concerning a contract of employment
”.
A sensible meaning, one that does not lead “
to
insensible
or unbusinesslike results
”
and which accords with the express language and apparent purpose of
the provision,
[5]
is not one
which expands the jurisdiction of the Labour Court to matters which
do not relate to or concern an employment contract
simply because an
agreement records agreement on some matters which do concern such a
contract. Such an interpretation would not
accord with the express
language of the statute.
[15]
The
agreement to provide services as an
independent contractor is not
concerned
with the appellant’s employment contract, although that
agreement was entered into when agreeing to terminate the
employment
contract. Similarly, the agreement to make payment of medical aid
contributions during the period in which the appellants
provide
services as independent contractors is patently a matter not
concerned with the employment contract.
[16]
For these reasons, the Labour Court’s finding that the
appellants’ claims for payment of monies claimed for services
rendered as independent contractors and for medical aid contributions
were not justiciable cannot be faulted. Whereas the Court
correctly
concluded, in relation to the payment of remuneration that was
expressly agreed in the settlement agreement and the payment
of
accrued leave, that both matters were concerned with and related to
the contract of employment entered into between the parties
and that
the Labour Court consequently had the requisite jurisdiction to
determine such claims.
[17]
The quantum of the payments claimed in respect of remuneration
and leave pay was set out in the appellants’ founding papers
and were capable of
determination
. These
amounts were not contradicted by the respondents, nor did the
respondents dispute that the monies due had not been paid.
The Court
correctly concluded that the globular sum claimed by the appellants
less the independent contractor fee and medical aid
contributions
amounted to the sum due in respect of unpaid remuneration and accrued
leave. The Labour Court consequently did not
err in making the orders
that it did, granting in relation to unpaid remuneration and accrued
leave pay that it did.
[18]
For these reasons, both the appeal and the cross-appeal cannot
succeed and fall to be
dismissed
, with
the orders of the Labour Court permitted to stand. Since neither
party has been successful on appeal, there is no reason
in law or
fairness why an order of costs should be made in this matter.
[19]
For these
reasons
, the following
order is made:
Order
1. The appeal is
reinstated, and the late filing of the record is condoned.
2. The appeal and
cross-appeal are dismissed.
3. There is no order as
to costs.
SAVAGE
AJP
Sutherland
AJA and Davis AJA agree.
APPEARANCES:
FOR
THE APPELLANTS: L Hollander
Instructed
by Swarts Weil Van der Merwe Greenberg Inc.
FOR
THE RESPONDENTS: M J Engelbrecht SC and F Karachi (heads by G A
Fourie SC and F Karachi)
Instructed
by Werksmans Attorneys
[1]
Act
75 of 1997.
[2]
Lewarne
v Fochem International (Pty) Ltd
[2019]
ZASCA 114
;
(2019)
40 ILJ 2473 (SCA) at para 8.
[3]
University
of the North v Franks and Others
[2002] ZALAC 13
;
(2002)
23 ILJ 1252 (LAC) at paras 29-30.
[4]
SA
Municipal Workers Union on behalf of Morwe v Tswaing Local
Municipality and Others
[2022]
ZALAC 107
; (2022) 43 ILJ 2754 (LAC) at para 9.
[5]
Natal
Joint Municipal Pension Fund v Endumeni Municipality
[2012] ZASCA 13
;
2012 (4) SA 593
(SCA) at para 18.
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