Case Law[2025] ZAGPJHC 157South Africa
Dario Investments Pty Ltd t/a Thembisa Superspar v Makweala and Another (A2023/091028) [2025] ZAGPJHC 157 (18 February 2025)
High Court of South Africa (Gauteng Division, Johannesburg)
18 February 2025
Headnotes
– High Court’s
Judgment
begin wrapper
begin container
begin header
begin slogan-floater
end slogan-floater
- About SAFLII
About SAFLII
- Databases
Databases
- Search
Search
- Terms of Use
Terms of Use
- RSS Feeds
RSS Feeds
end header
begin main
begin center
# South Africa: South Gauteng High Court, Johannesburg
South Africa: South Gauteng High Court, Johannesburg
You are here:
SAFLII
>>
Databases
>>
South Africa: South Gauteng High Court, Johannesburg
>>
2025
>>
[2025] ZAGPJHC 157
|
Noteup
|
LawCite
sino index
## Dario Investments Pty Ltd t/a Thembisa Superspar v Makweala and Another (A2023/091028) [2025] ZAGPJHC 157 (18 February 2025)
Dario Investments Pty Ltd t/a Thembisa Superspar v Makweala and Another (A2023/091028) [2025] ZAGPJHC 157 (18 February 2025)
Download original files
PDF format
RTF format
make_database: source=/home/saflii//raw/ZAGPJHC/Data/2025_157.html
sino date 18 February 2025
FLYNOTES:
LABOUR
– Jurisdiction –
High
Court
–
Jurisdiction
depends on pleaded cause of action – Claim framed as
unlawful dismissal and violation of constitutional
rights –
Pleadings were vague and lacking legally recognized cause of
action outside LRA – Claim falls under
Labour Court’s
exclusive jurisdiction – High Court lacked jurisdiction –
Appeal upheld – High Court’s
order set aside –
Labour Relations Act 66 of 1995
,
s 157(2)
–
Basic Conditions
of Employment Act 75 of 1997
,
s 77(3).
IN THE HIGH COURT OF
SOUTH AFRICA
(GAUTENG DIVISION,
JOHANNESBURG)
CASE NO: A2023/091028
(1)
REPORTABLE:
YES
(2)
OF INTEREST TO OTHER JUDGES: YES
(3)
REVISED.
In the matter between:
DARIO INVESTMENTS
(PTY) LTD t/a
THEMBISA
SUPERSPAR
APPELLANT
and
MATOME JOSEPH
MAKWEALA
FIRST RESPONDENT
SHADRACK SIMPHIWE
MACHABAWE
SECOND TO FURTHER RESPONDENTS
JUDGMENT
BOOYSEN AJ
Introduction
[1]
This
is an appeal
against the whole of the judgment and order of Phahlamohlaka AJ
in
this
Division
granted
on
10
October 2023.
The
following
order was granted by the court
a quo
:
"a) The matter is
heard on an urgent basis in terms of Rule 6(12) of the Uniform Rules
of Court.
b)
The decision of the respondent to terminate the
appellants' employment contracts with effect from 26th August 2023 is
hereby declared
to be unlawful.
c)
The applicants be re-instated to their employment
with effect from the date of the termination of their employment
contracts, with
backpay and all the benefits.
d)
The respondent is prohibited from terminating the
applicant's employment contracts without complying with its internal
policy procedures.
e)
The respondent is ordered to pay costs".
[2]
An application for leave to appeal was dismissed
with costs by the court
a quo
on 26 January 2024.
[3]
The
appellant
applied
for
leave
to
appeal
to
the
Supreme
Court
of
Appeal. Zondi JA and
Nicholls JA granted leave to appeal in the following terms:
"1. Leave to appeal
is granted to the Full Court of the Gauteng Division of the High
Court, Johannesburg.
2. The costs of the court
a quo
in dismissing the application for leave to appeal is set
aside AND the costs of the application for leave to appeal in this
court
and the court
a qu
o are costs in the appeal. If the
applicant does not proceed with the appeal, the applicant is to pay
the costs."
Background and common
cause facts
[4]
The appellant carries on business in the food
retail sector and owns and operates Tembisa Super Spar.
[5]
The
respondents
were
former
employees
of
the
appellant
deployed
in
the
appellant's business.
[6]
During May 2023, Justice for All Workers of South
Africa Trade Union on behalf of the respondents issued a demand to
the appellant
for:
"1. 4 weeks annual
bonus;
2. 10% annual increase
for the year 2023."
[7]
The appellant could not comply with the demand and
the dispute was referred to the Council for Conciliation, Mediation
and Arbitration
(CCMA) on 24 May 2023.
[8]
The CCMA process did not result in resolution of
the dispute and on 4 July 2023 the CCMA issued a "Certificate of
Outcome of
Dispute Referred to Conciliation" which confirms that
the dispute remained unresolved as at 4 July 2023 and that
"strike/lockout"
are the steps that may be taken.
[9]
On 23 August 2023 the respondents issued a 48-hour
notice to strike, "until our demands as set out in CCMA referral
form"
are met.
[10]
The
appellant
brought
an
urgent
application
in
the
Labour
Court
on 25 August 2023 (the 25 August Urgent
Application) for an order interdicting the threatened illegal strike,
preventing access
to appellant's business premises, disrupting
appellant's operations and causing a nuisance. That application was
dismissed on the
merits.
[11]
The
appellant
brought
a
further
urgent
application
in
the
Labour
Court
on
27
August 2023 (the 27 August Urgent Application) for an order against
the respondents (to the extent relevant here) to commence
and
continue their strike but not within a 200-meter radius of the
entrance of the appellant's store. This application was struck
from
the roll for lack of urgency.
[12]
On 28 August 2023 the appellant issued a notice to
all its employees to attend a disciplinary hearing on 30 August 2023
at the Premier
Hotel, 73 Gladiator Street, Rhodesfield, Kempton Park
in respect of the following allegations of misconduct:
"(A)
Threatening
Behaviour
Threatening and harmful
behaviour:
1.
In that on 26, 27 and 28 August 2023, you
threatened fellow employees and management that if they do not
participate in the strike,
you will harm them.
2.
Blocking the entrance of the employer's store on
28 August 2023, to prevent patrons from entering, by standing or
sitting in the
entrance.
3.
Physically
removing
patrons,
intending
to
enter
the
employer's
store,
on
28 August 2023.
(B)
Intimidation and or incitement
Intimidation and/or
incitement
1.
In that on the 27th and 28th of August 2023, you
threatened employees and management, through words or conduct or a
combination
of both with the intention to influence them to act in a
certain way, namely to join the strike and down tools. This is aimed
at
actions that are detrimental to the company, its staff and/or
clients.
2.
On Monday the 28th of August 2023, you intimidated
prospective patrons of the employers, by physically removing them
from the store
entrance, and forcing them to leave. This is aimed at
actions that are detrimental to the company, its staff and/or
clients.
3.
This conduct is detrimental to the maintenance of
good order within the work place.
(C)
Sabotage
Sabotage in that:
1.
On 28 August 2023, you wilfully blockaded the
entrance of the employer, thus hindering trade and normal business
activities on that
day.
2.
You deliberately sabotaged the company from
trading.
3.
You deliberately and intentionally caused the
employer financial harm, by refusing to adhere to reasonable request
by the employer
and centre management to move to a demarcated area.
4.
Your conduct is detrimental to the image and or
good standing of the company within the perception of the public
thereby creating
a negative image of the company.
(D)
Breach of Company Policy and Breach of
Trust
:
1.
Your
unlawful
conduct
is
contrary
to
the
company
policy
that
has
been
implemented by way of your conduct as described above.
2.
Your conduct results in a serious breach of
trust."
[13]
The appellant also brought an
Ex
parte
spoliation application (the
Ex
parte
application) against the
respondents in the High Court, Gauteng Division, Pretoria, for
restoration of peaceful and undisturbed
possession of its business
premises and to prohibit the respondents from harassing, intimidating
and threatening the appellant's
employees and customers. The High
Court, Gauteng Division, Pretoria issued an interim order with a
return date of 15 January 2024
to show cause why the order should not
be made final.
[14]
On 29 August 2023 the respondents brought an
urgent application for hearing on 30 August 2023 at 14h00 in the
Labour Court for an
interdict to prohibit the disciplinary hearing
from taking place. The Labour Court did not hear the matter. The
reasons as explained
by the respondents, being an apparent confusion
whether the matter was enrolled for 30 or 31 August 2023.
[15]
The disciplinary hearing was conducted on 30
August 2023 at 16h30 before Adv B Delport.
[16]
The following extracts from the chairperson's
findings in the disciplinary hearing are relevant:
"1. In these
disciplinary proceedings there are 72 (Seventy-Two) and additional 13
(Thirteen) Employees that have been charged
with misconduct.
Attendance Register attached as "A". The Employees were
given notice of the disciplinary proceedings
on 28 August 2023, at
least 48 hours in advance. Notice attached as 'B'."
"2. The proceedings
were conducted at the Premier Hotel O R Tambo. At the commencement of
the hearing there were only three
Employees present by the names of
Charmaine Nkanyane, Thandi Nkuna and Nyiko Beauty Maringa."
"3. Some of the
Employees were gathered at the premises of the Hotel but never
actually attended the disciplinary hearing and
remained in the lobby
of the Hotel of their own free will and volition. When asked by Mrs
Schoeman who was going to be their three
representatives as there was
no way to hear them all, no response was given, and they began
singing and caused great uproar and
disturbance in the Hotel."
"4.Due to the
elected non-appearance of the remainder of the Employees the
disciplinary hearing proceeded."
"10. Whilst the
Employer representative was making final submission for the Employer
four unidentified persons entered the
conference room where the
disciplinary proceedings were taking place. Two of them were
recording on their cell phones."
"11. At such time, I
asked them if they were here as the representatives for the Employees
or were they also here to represent
themselves. To which no response
was received, they only stopped recording and walked out again."
"12. After the
Employer representative was done making submissions on behalf of the
Employer and setting out the facts of the
misconduct, another three
persons entered the conference room, two of them remain
unidentified."
"13. I proceeded to
ask them if they were Employees' representative to which a man by the
name of Joseph Makwela answered that
he was the representative. This
was around 17:15. When I asked if they were ready to proceed and to
plead to the charges, he indicated
that the Employees sought a
postponement."
"14. Such request
for a postponement was subsequently denied, as the only reason that
they provided was that they did not have
sufficient time to prepare
for the hearing as they were at the Labour Court. It was further
correctly pointed out by the Employer
Representative that should they
have desired a postponement, they should have communicated that to
the Employer. Also, if they
were desirous of a postponement they
should have been present at the commencement of the proceedings and
requested a postponement."
"15. The matter was
at that point part-heard and it was found that sufficient notice was
given of the disciplinary hearing.
It was established that the
Employee representative was not the representative at the Labour
Court and therefore there was no reasonable
substantiation for the
granting of a postponement."
"16. As a courtesy
the Employee representative was given until 17:30 to obtain
instruction for (sic) the Employees and return.
During such
adjournment the Employees in the lobby caused such havoc that the
security had to remove them from the premises completely."
"17. At 17:35 no one
of the Employees or any other Employee returned after the
adjournment. The proceedings continued and the
Employer
representative made her closing argument and addressed the chair on
sanction in the event that the Employees are found
guilty."
"18. The Employer
representative set out the case for the Employer and made the
submissions as to the events that transpired
from 26 up until 29
August 2023. Video evidence of the events that transpired were
presented by the Employer."
"23. The charges
pertaining to the Employees does not relate to the unlawfulness of
the strike but relates to the conduct of
the Employees during the
strike."
"24. It was further
submitted that throughout the strike the Employees gathered in front
of the entrance of the Employer which
is located in a cul-de-sac
section of the mall. This caused disturbance of not just the Employer
but also other shops in the mall."
"25. On 27 August
2023, the strike continued without proper notice. On this day, the
Employer as well as the Centre Manager
of the mall requested the
Employees to just continue with their strike outside."
"27. On the same
day, the EFF and the community threatened the non-striking Employees
and called them the 'Rats of Society'.
The store once again was
closed due to the conduct of the Employees, the EFF and the
community."
"28. On 28 August
2023, the strike continued without authorisation, the store was
opened on this day but subsequently had to
be closed again. In the
video of evidence, it was clear that the strike involved Employees,
members of the EFF and the community
laying on the floor, standing
and sitting in front of the entrance of the Employer."
"29. There was also
singing and chanting, the participants were prohibiting other
Employees as well as patrons from entering
the store by physically
blocking the entrance and intimidating them. There is one video where
an elderly lady was grabbed by the
arm whereafter she turned around
and walked away from the store."
"30. During the
duration of the strike the Employer as well as Centre Management of
the mall requested by Employees numerous
times to strike peacefully
and to continue with the strike outside the mall as to not affect the
business and trade of not only
the Employer but other business in the
vicinity as well. No response or adherence was given to these
requests."
"32. In closing it
was submitted that the conduct of the Employees has caused a complete
breakdown of trust between the Employer
and Employee. Therewith, that
the conduct further caused damage to the reputation of the Employer."
Employees'
Submissions
"38. Other than
these three Employees who elected to represent themselves and had
enough regard for the Employer and valued
their employment, none of
the other Employees attempted to attend the proceedings in order to
deal with this dispute at hand."
"39. The behaviour
displayed by the remainder of the Employees were purely disgruntled.
No submissions were made on behalf
of the remainder of the Employees
despite numerous attempts to reason with the Employees and requesting
that they send a representative
on their behalf."
"40. There is,
therefore, no submissions by the remainder of the Employees to
consider. There were therefore also no submissions
in mitigation of
sanction as the Employees continuously elected to remain outside."
Chairperson's
Findings
"41. No reason was
found to disregard or otherwise not accept the submissions made by
the Employer representative."
"42.
The
conduct
of
the
Employees
was
clearly
aggressive,
disorderly,
intimidating,
and harmful. This conduct ultimately caused the Employer to have to
close the store on several occasions."
"44. This
intentional disobedience of the Employer's reasonable request and
lawful instructions to continue with the strike
outside, was
unreasonable and intentionally disrespectful to the Employer."
"46. The conduct of
the Employees not only caused the Employer great damage to its
reputation but also resulted in a complete
breakdown of the trust
relationship essential to the Employer-Employee relationship."
"47. I also cannot
ignore the conduct of the Employees on the day of the disciplinary
hearing. The absolute disregard and disrespect
shown not only towards
the Employer and the instructions given but also towards the
proceedings as a whole, is utterly disgraceful."
"48. The conduct
displayed by the Employees not just during the strike but also during
the proceedings is a clear indication
of the complete breakdown of
the relationship and of the Employees intent to cause harm to the
Employer and its reputation."
"52. As for the
remainder of the Employees, their conduct during the strike that took
place from 26 August until 28 August
2023 was nothing short of
threatening, harmful and intimidating. Their blatant disregard for
reasonable request by the Employer
and even during the proceedings
clearly show their malicious intent towards their Employer."
"53. In the premise,
I make the following findings in terms of the charges against the
remainder of the Employees:
CHARGE (A) – Guilty
CHARGE (B) – Guilty CHARGE (C) – Guilty CHARGE (D) –
Guilty"
SANCTION
"54. I therewith
propose that the appropriate sanction against the remainder of the
Employees as per the Attendance Registry,
excluding the
abovementioned Employees, to be dismissal with effect from 26 August
2023."
[17]. Pursuant to the
findings of the chairperson of the disciplinary hearing, the
appellant dismissed the respondents with effect
from 26 August 2023.
The application by the
respondents
[18]
On
11 September 2023
the
respondents
brought
an
urgent
application
(the
application) in this Division for an order in the following terms:
"1 That condonation
be granted to the [respondents] for non-compliance with the time
limits as provided for in Rule 6 and that
the matter be heard as one
of urgency in terms of Rule 6(12).
2
The decision of the [appellant] to terminate the
[respondents'] employment contracts with effect from 26th August 2023
be declared
to be unlawful.
3
The [respondents] be reinstated to their
employment with effect from the date of the termination of their
employment contracts,
with back pay and all benefits.
4
The [appellant] be prohibited from terminating the
[respondents'] employment contracts without complying with its
internal policy
procedures.
5
The [appellant] be interdicted from terminating
the [respondents'] employment contract on the averments made in the
urgent applications
served before Justice Phehane on the 25 and 27 of
August 2023, respectively – unless the court orders are
successfully appealed.
6
The [appellant] to pay the costs, including
counsel on attorney and client scale.
7
Any further alternative relief.
8
Costs against the [appellant] on client and
attorney scale."
[19]
In this application the respondents' contentions
can be summarised as follows:
a.
The respondents approached the court
a
quo
to declare the appellant's
termination of their employment contracts unlawful, to obtain an
order for
specific
performance,
to
reinstate
the
respondents'
employment
contracts and further to restore the plight, dignity and
constitutional rights of the respondents.
b.
The appellant should have appealed the orders of
court in the 25 August Urgent Application and the 27 August Urgent
Application
instead of charging the respondents disciplinary. The
appellant's behaviour "to regurgitate the averments that served
before
the court (in the said urgent applications) in a disciplinary
hearing, is unlawful, unconstitutional and undermines the authority
of the judiciary."
c.
The disciplinary hearing "constituted"
by the appellant contravened its internal policy and "the
audi
-principle".
In terms of the appellant's policy, the respondents ought to have
been afforded "an opportunity to state
their case including
their defence and mitigation".
d.
The appellant’s alleged unlawful decision
caused the respondents to suffer hardship and grave and irreparable
harm and constitutional
rights were "implicated".
e.
In
respect of jurisdiction, the respondents' position is that they
sought and order to declare the termination of their employment
contracts to be unlawful, that their pleaded case placed no reliance
on the fairness of the termination or the provisions of the
LRA.
Further, that it is trite that the High Court has concurrent
jurisdiction in terms of section 77(3) of the Basic Conditions
of
Employment Act
[1]
(BCEA) to
adjudicate disputes emanating from employment contracts.
[20]
The appellant's arguments in opposing the
application can be summarised as follows:
a.
The appellant disputed the urgency of the matter.
b.
The appellant disputed the court
a
quo's
jurisdiction on the basis that
the respondents' case is mainly based on the fairness of their
dismissal.
c.
the
court
a
quo
would
not have had jurisdiction to declare the termination of respondents'
employment contracts unlawful based on an unreported
judgment of the
Labour Appeal Court in the case of Tswaing Local Municipality.
[2]
d.
In respect of the merits, the appellant relied on
the fact that the "policy procedure" of the appellant
alleged to have
been breached was neither attached to their papers
nor pleaded. The exact terms of the employment contracts between the
appellant
and respondents alleged to have been breached were not
pleaded, neither were the alleged breaches pleaded.
e.
The
appellant relied on alternative remedies being available to the
respondents being the right to approach the CCMA in terms of
the
Labour Relations Act
[3]
(LRA).
f.
In
respect of the respondents' personal financial circumstances, the
appellant relied on the judgment in
University
of the Western Cape Academic Staff Union & Others v University of
the Western Cape
[4]
which
is to the effect that loss of income as a result of dismissal is an
inevitable consequence and as such provides no good ground
for the
granting of urgent interim relief.
[21]
The
court
a
quo
found
that it had jurisdiction to hear the application in terms of section
77(3) of the BCEA, based on the principles expressed
in
Gcaba
vs Minister for Safety and Security and Others
[5]
(
Gcaba
)
quoted in para [50] below. The learned acting judge pointed out that,
in
Gcaba,
the
applicant's case as pleaded was only based on fairness, while
sparsely interposed by unadorned reference to section 77(3) of
the
BCEA.
[22]
Further, the court a
quo
heard the application on an urgent
basis and found the appellant's allegation, that it does not have a
policy and procedure, to
be without merit. The learned acting judge
referred to the fact that the employment contract attached to the
appellant's replying
affidavit
refers
to
"policy and procedure" and that one of the charges in the
disciplinary hearing referred to the respondents' conduct
being
contrary to the company policy that has been implemented.
[23]
The court a
quo
further found that the appellant was
forum shopping with the objective of obtaining a court order against
the respondents by reference
to the 25 August Urgent Application and
the 27 August Urgent Application; and as a result, concluded that the
respondents made
out a compelling case for the relief sought in the
notice of motion and granted the order set out in para [1] above.
[24]
The judgment in the application forms the subject
of this appeal.
[25]
The following issues arise in this appeal.
Jurisdiction
[26]
The appellant disputed the jurisdiction of the
court
a quo
on
the basis that the respondents' case "was mainly based on
fairness, while sparsely interposed by adorned references to section
27(3) of the BCEA."
[27]
The
appellant also relied on the judgment in
Passenger
Rail Agency of South Africa & Others v Ngoye & Others
[6]
(
Prasa
)
where the Labour Appeal Court remarked that:
"…it became
commonplace, mostly for white collar employees, to challenge their
dismissals … on the basis of unlawfulness
and/or breach of
contract, rather than to dispute the fairness of the employer's
action," and "this matter is yet another
example of this.
Here, the employees allege that their dismissals were unlawful and
refrained from disputing its fairness."
[28]
I will return to the appellant's reliance on
Prasa
in support of its argument that the
court
a quo
lacked
jurisdiction in the application, in para [58] below.
[29]
The
appellant further relied on the Labour Appeal Court's referral in
Prasa
,
with approval, of the Constitutional Court's judgment in
Gcaba
vs Minister of Safety and Security & Others
[7]
wherein
it was held that, "… equally important were the
pronouncement that the substance of a dispute must prevail over
its
form." It was explained
that
if
substance
were
allowed
to
dominate,
"astute
litigants"
would
formulate their claims very carefully to avoid the dispute resolution
machinery
created
by the LRA
[8]
.
[30]
The respondents' arguments are to the contrary.
Their position is that their pleaded case disavowed any reliance on
the LRA and
the application (in the court
a
quo
) is "based on the breach of
employment contract".
[31]
The
respondents rely on
Fedlife
Assurance Ltd v Wolfaard
[9]
(Fedlife),
Makhanya v University of Zululand
[10]
and
SA
Maritime Safety Authority v McKenzie
[11]
summarising
the "common thread" as "that the courts will have
jurisdiction to hear a dismissal dispute as long as
the employee
pleads the claim as one relating to unlawfulness or breach of
contract, and not to unfairness."
[32]
In order to determine whether,
in
casu,
the court
a
quo
had jurisdiction to hear the
application, it is necessary to analyse the legislative framework and
the judicial pronouncements thereon.
The Labour Court's
exclusive jurisdiction and the Labour Court and the High Court's
concurrent jurisdiction
[33]
Section 157(1) of the LRA regulates the Labour
Court's exclusive jurisdiction as follows:
"157
Jurisdiction of Labour Court
(i) subject to the
Constitution and section 173, and except where this Act provides
otherwise, the Labour Court has exclusive jurisdiction
in respect of
all matters that elsewhere in this Act or in terms of any other law
are to be determined by the Labour Court."
[34]
The concurrent jurisdiction of the Labour Court
and the High Court is regulated in section 157(2) of the LRA as
follows:
"157 Jurisdiction of
the Labour Court
(1)…
(2)
The Labour Court has concurrent jurisdiction with
the High Court in respect of any alleged or threatened violation of
any fundamental
right entrenched in Chapter 2 of the Constitution of
the Republic of South Africa, 1996, and arising from:
(a)
employment and from labour relations;
(b)
any dispute over the constitutionality of any
executive or administrative act or conduct, by the State it is
capacity as an employer;
and
(c)
the application of any law for the administration
of which the Minister [of Labour] is responsible."
[35]
The following sub-sections of section 77 of the
BCEA are relevant in respect of the High Court's jurisdiction.
"(1) Jurisdiction of
the Labour Court -
(1) Subject to the
Constitution and the jurisdiction of the Labour Appeal Court, and
except where this Act provides otherwise, the
Labour Court has
exclusive jurisdiction in respect of all matters in terms of this
Act.
(1A) The Labour Court has
exclusive jurisdiction to grant civil relief arising from a breach of
section 33A, 43, 44, 46, 48, 90
and 92.
(2)…
(3)
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."
[36]
The question of the concurrent jurisdiction of the
Labour Court and the High Court enjoyed the consideration of the High
Court,
the Supreme Court of Appeal and the Constitutional Court on a
number of occasions.
[37]
In
Langeveldt
v Vryburg Transitional Local Council and Others
[12]
,
the Labour Appeal
Court
noted
that,
within
four
years
of
the
Labour
Court
becoming
fully
operational, a number of labour matters came before the High
Courts, confronted with the question whether they had jurisdiction
despite the existence of the Labour Court. Having examined fifteen
decisions, the Labour Appeal Court concluded that these cases
reveal
the jurisdictional complexities which the provisions of section
157(2) of the LRA has created.
[38]
However, the question of the concurrent
jurisdiction of the Labour Court and the High Court has, over more
than twenty years since
Langeveldt
,
been clarified. I will deal with that clarification below.
[39]
In
Fedlife
the
Supreme Court of Appeal had to determine the merits of an exception
to a special plea to the effect that the Labour Court has
exclusive
jurisdiction in a claim for contractual damages as a result of early
termination of a fixed term contract. The Supreme
Court of Appeal
rejected the appellant's argument that Chapter 8 of the LRA codifies
the rights and remedies that are available
to all employees in our
law arising from the termination of their employment. On the question
whether the Labour Court has exclusive
jurisdiction, the Supreme
Court of Appeal stated the following:
"[25] Furthermore
section 157(1) [of the LRA] does not purport to confer exclusive
jurisdiction upon the Labour Court generally
in relation to matters
concerning the relationship between employer and employee."
"[27] Whether a
particular dispute falls within the terms of section 191 depends upon
what is in dispute and the fact than
an unlawful dismissal might also
be unfair (at least as a matter of ordinary language) is irrelevant
to that enquiry. A dispute
falls within the terms of the section,
only if the 'fairness' of the dismissal is the subject of the
employee's complaint. Where
it is not, and the subject in dispute is
the lawfulness of the dismissal, then the fact that it might also be,
and probably is,
unfair, is quite coincidental for that is not what
the employee's complaint is about. The dispute, in the present case
is not about
the fairness of the termination of the respondent's
contract but about its unlawfulness and for that reason alone, it
does not
fall within the terms of the section (even assuming that the
termination constituted a dismissal as defined in chap 8)."
[40]
In
Fredericks
and Others v MEC for Education and Training Eastern Cape and
Others
[13]
,
(
Fredericks
)
the Constitutional Court considered the scope of the jurisdiction of
the High Court to determine certain complaints arising out
of an
employment relationship.
In
the High Court (a full court) held that it did not have jurisdiction
in the matter on the basis that, on a proper consideration
of the
LRA, its jurisdiction to consider their claims have been ousted by
the relevant provisions of the LRA.
[41]
On appeal to it, the Constitutional Court observed
in
Fredericks,
that
a starting point
for
a
proper
interpretation
of
section 157(1)
and
(2)
of
the
LRA,
is
section 157(1). To the extent that the exclusive jurisdiction of the
Labour Court is conferred by section 157 or any other provision
of
the LRA or other legislation, the High Court's jurisdiction is
ousted. Deciding which matters fall of the Labour Court, said
the
court, requires an examination of the LRA and noted, "It is
quite clear that the overall scheme of the [LRA] does not
confer a
general jurisdiction on the Labour Court to deal with all disputes
arising from employment", quoting with approval,
Nugent JA's
finding in
Fedlife
as
follows: "(S)ection 157(1) does not purport to confer exclusive
jurisdiction on the Labour Court generally in relation to
matters
concerning the relationship between the employer and employee".
[42]
In
Chirwa
v Transnet Ltd and Others
[14]
(
Chirwa
)
the question of the High Court's jurisdiction again enjoyed the
consideration of the Constitutional Court. Judgments were delivered
by Justices Skweyiya, Ngcobo and Langa.
[43]
In
Chirwa
,
Ms Chirwa was invited to a disciplinary enquiry to respond to
allegations of inadequate performance, incomplete and poor employee
relations. Ms Chirwa did not participate, and she was dismissed.
Following her dismissal, she referred the dispute to the CCMA
alleging an unfair dismissal. The CCMA was unable to resolve the
dispute and recommended arbitration. Ms Chirwa did not proceed
to
arbitration but approached the High Court seeking an order to set
aside the disciplinary proceedings and re-instatement in her
former
position. Ms Chirwa concluded that the
third
respondent (the Chief Executive Officer of the Transnet Pension Fund
who took the decision to dismiss Ms Chirwa) failed to
comply
with
the
mandatory
requirements
of
Items 8
and
9
of
Schedule 8
to the LRA, and hence the decision is reviewable
in terms of the Promotion of Administrative Justice Act. Ms Chirwa
explained that
she approached the High Court for practical
considerations, and it was contended on her behalf that the High
Court had concurrent
jurisdiction with the Labour Court in respect of
her claim.
[44]
Justice
Skweyiya, in analysing the exclusive jurisdiction of the Labour Court
in terms of section 157(1) of the LRA and its concurrent
jurisdiction
with the High Court in section 157(2), noted that the jurisdiction of
the High Court is not ousted simply because
a dispute is one that
falls within the overall sphere of employment relations
[15]
.
Distinguishing
Fredericks
(where
the applicants expressly disavowed any reliance on section 23(1) of
the Constitution which entrenches the right to a fair
labour
practice) Ms Chirwa expressly relies on those provisions of the LRA
which deal with unfair dismissals and concluded that
the dispute was
one envisaged by section 191 of the LRA which provides a procedure
for its resolution and which must, under the
LRA, be determined
exclusively by the Labour Court.
[45]
In a separate judgment, Justice Ngcobo noted, in
respect of the scope of the operation of the provisions of
section157(1) and (2)
of the LRA that "there are conflicting
judicial views on how to resolve these issues" and referred to
the Labour Appeal
Court's conclusion that an examination of some 15
decisions of the issue clearly revealed the jurisdictional
complexities which
the provisions of section 157(2) of the LRA have
created."
[46]
In
para [92] of
Chirwa
,
Justice Ngcobo criticised the view expressed in
United
National Public Servants Association of SA v Digomo NO &
Others
[16]
that,
"provided the employee's claim, as formulated, does not purport
to be one that falls within the exclusive jurisdiction
of the Labour
Court, the High Court has jurisdiction even of the claim could have
been formulated as an unfair labour practice".
Justice
Ngcobo's
difficulty
with
that
view
is
that
it
leaves
it
to
the
employee to decide in which court the dispute is to be heard and
expressed the view that it could not have been the intention
of the
legislature to bring about this consequence.
[17]
[47]
Justice
Ngcobo refers to various decisions by the High Courts
[18]
where
the view was expressed that courts should look, not at how the
employee has characterised the dispute, but the substance of
the
dispute. In
Boxer
Superstores Mthatha & Another v Mbenya
[19]
a
different view was expressed, where the Supreme Court of Appeal noted
that the employee, "formulated her claim carefully
to exclude
any recourse to fairness, relying solely on contractual
unlawfulness"
[20]
.
[48]
After having analysed the objects and declared
intention of the LRA, Justice Ngcobo concluded that:
"The
manifest purpose of section 157(2) was therefore to confer
constitutional jurisdiction on the Labour Court"
[21]
;
"Given
the manifest purpose of section 157(2) the use of the word
'concurrent' is unfortunate. Concurrent jurisdiction may
well give
rise to forum-shopping with all its unfortunate consequences"
[22];
"Section
157(2)
must
be
given
a
narrow
meaning.
The
application
of
section 157(2) must be confined to those instances, if any, where a
party relies directly on the provisions of the Bill of Rights
[23]
;
and
"For
all the reasons, I hold that the dispute between the Applicant and
Transnet falls within the exclusive jurisdiction of
the Labour Court.
It follows therefore that the High Court did not have jurisdiction in
respect of the Applicant's claim
[24]
."
[49]
It is important to point out that Ms Chirwa, after
having been dismissed following a disciplinary enquiry, referred the
dispute
to the CCMA, a dispute resolution mechanism in terms of the
LRA.
When the dispute was not resolved, Ms
Chirwa did not pursue arbitration but instead approached the High
Court, effectively changing
her previously elected forum. In the
application, the respondents did not embark on a change of their
elected forum as the applicant
in
Chirwa
did.
[50]
The principles of the Labour Court's exclusive
jurisdiction as expressed by justice Ngcobo in
Chirwa
have been reversed in
Gcaba
and
Baloyi
as set out below.
[51]
In
Gcaba,
the
Constitutional Court highlighted the factual and procedural
similarities and differences between
Fredericks
and
Chirwa
and said: "To the extent that this
judgment may be interpreted to differ from
Fredericks
or
Chirwa
,
it is the most recent authority".
[52]
On the question whether the High Court has
jurisdiction in terms of section 157(2) of the LRA, the
Constitutional Court in
Gcaba
said
the following:
"Jurisdiction
is determined on the basis of the pleadings, as Langa CJ held in
Chirwa
,
supra
and
not the substantive merits of the case. … Where the pleadings
including in motion proceedings, not only the formal terminology
of
the notice of motion, but also the supporting affidavits must be
interpreted to establish what the legal basis of the applicant's
claim is.
It
is not for the court to say that the facts asserted by the applicant
would also sustain another claim
,
cognisable only in another court. If, however, the pleadings properly
interpreted establish that the applicant is asserting a
claim under
the LRA, one that is to the determined exclusively by the Labour
Court, the High Court would lack jurisdiction".
[25]
(Footnotes omitted) (Emphasis added)
[53]
Clarifying
Justice Ngcobo's reference to a court of labour and employment
disputes, Justice van der Westhuizen observed in
Gcaba
;
"If only the Labour Court could deal with disputes arising out
of all employment relations, remedies could be wiped out,
because the
Labour Court (being a creature of statute with only
selected
remedies
and
powers)
does
not
have
the
power
to
deal
with
common law or other statutory remedies".
[26]
[54]
In my view, the facts in this case can be
distinguished from those in
Gcaba.
In
Gcaba
, the
Constitutional Court held that Mr Gcaba's complaint was essentially
rooted in the LRA as it was based on the conduct of an
employer
towards an employee which may have violated the right to fair labour
practices. Mr Gcaba lodged a grievance with the SAPS
but later
abandoned the process and referred the dispute to the Safety and
Security Sectoral Bargaining Council. When the South
African Police
failed to attend the pre-arbitration meeting, Mr Gcaba withdrew the
dispute from the said bargaining council and
approached the High
Court with an application to review and set aside the decision of the
National and Provincial Commissioners
of Police not to appoint him as
station commissioner. Put differently, Mr Gcaba initiated a process
in terms of the LRA and subsequently
changed his elected forum and
approached the High Court.
[55]
The
latest pronouncement of the Constitutional Court (and current
authority) on the jurisdiction of the High Court in respect of
section 157 of the LRA is
Baloyi
vs Public Protector and Others
[27]
(
Baloyi
).
The appellant, Ms Baloyi, was employed by the office of the public
protector as chief operations officer on a five-year contract
with a
six-month probation period. Three months after expiry of the
probation period, she was requested to make representations
on the
confirmation of her appointment. After having done so, Ms Baloyi
received a letter advising her that her contract would
end ten days
later because she had been found "unsuitable of the role of
COO". Ms Baloyi launched an urgent application
in the High
Court, Gauteng Division, Pretoria for orders declaring the
termination of her employment unconstitutional, unlawful
and setting
it aside. The High Court dismissed the application on the basis that
it lacked jurisdiction as the application should
have been brought in
the Labour Court. The following sections of the judgment are relevant
in this regard:
"[21] The crisp
question that this court is called upon to answer is whether the High
Court erred in holding that it lacked
jurisdiction to hear Ms
Baloyi's claim."
"[22]
The
High
Court
has
jurisdiction
to
adjudicate
any
matter,
except
matters
that:
(i) fall within the
exclusive jurisdiction of this Court in terms of section 167(4) of
the Constitution; (ii) this court has agreed
to hear directly in
terms of section 167(6); or (iii) have been assigned by legislation
to another court with a status similar
to that of a High Court"
(by reference to section 169(1) of the Constitution)."
"[23] …
(S)ection 157(1) of the LRA provides for the exclusive jurisdiction
of the Labour Court in all matters that
- in terms of the LRA or any
other law - are to be determined by the Labour Court. Sections 68(1),
77(2)(a), 145 and 191 of the
LRA proffer examples of matters that
'are to be determined by' the Labour Court and are therefore, by
virtue of section 157(1),
within the exclusive jurisdiction of the
Labour Court. This court has found, moreover, that the High Court's
jurisdiction in respect
of employment-related disputes is ousted only
where the dispute is one for which the LRA creates specific remedies,
including for
example, unfair dismissal disputes", referring to
Gcaba.
"[24] Crucially,
section 157(1) does not afford the Labour Court general jurisdiction
in employment matters and, as a result,
the High Court's jurisdiction
will not be ousted by section 157(1) simply because a dispute is one
that falls within the overall
sphere of employment relations."
"[31] The concurrent
jurisdiction afforded to the Labour Court and the High Court in terms
of section 77(3) of the [BCEA] and
section 157(2) of the LRA adds to,
rather than diminishes, their jurisdiction."
"[32] In order to
determine whether the High Court lacked jurisdiction to adjudicate Ms
Baloyi's claim, it is necessary to
determine whether the claim is of
such a nature that it is required, in terms of the LRA, or the
[BCEA], to be determined exclusively
by the Labour Court."
"[33] In
Gcaba,
this court made it clear that an assessment of jurisdiction must
be based on an applicant's pleadings, as opposed to the substantive
merits of the case", quoting the extract from
Gcaba
reflected
in para [50] above."
"[36] The High Court
judgment expressly acknowledges that Mr Baloyi disavowed any reliance
on her rights under the LRA."
"[37] The High Court
held that the matter is essentially a labour dispute arising from an
employment relationship that falls
within the Labour Court's
exclusive jurisdiction. For the reasons that follow, the High Court
erred in reaching this conclusion."
"[38] It is trite
that the same set of facts may give rise to several different causes
of action."
"[40]
The
mere potential for an unfair dismissal claim does not obligate a
litigant to frame her claim as one of unfair dismissal and
to
approach the Labour Court, notwithstanding the fact that other
potential causes of action exist. In other words, the termination
of
a contract of employment has the potential to found a claim for
relief for infringement of the LRA,
and
a
claim for enforcement of a right that does not emanate from the LRA
(for example, a contractual right)."
[28]
(Footnotes omitted)
The High Court's
Jurisdiction in the court a quo
[56]
In the application, the relief sought by the
respondents (applicants in the court
a
quo
) is, amongst others, for a
declarator that the termination of their employment contracts by the
appellant was unlawful and for
an order to be re-instated in their
employment retrospectively.
[57]
The aforesaid relief is based on allegations in
the respondents' founding affidavit as follows:
a.
The
appellant
ought
to
have
appealed
the
court
orders
in
the
25 August 2023 and
27 August 2023 urgent applications (referred to in paras [10] and
[11] above) instead of charging the respondents
in a disciplinary
hearing and on that basis the court
a
quo
should have found that the conduct
of the appellant in termination the respondents' employment
contracts
was
unlawful.
This
ground
is
expanded
in paras 49.13
to 16 of the respondents' founding affidavit, alleging that the
appellant's behaviour is unlawful, unconstitutional
and undermines
the authority of the judiciary in relation to the aforesaid urgent
applications.
b.
The appellant "Contravened its internal
policy and the
audi
principle
– in terms of its policy the [respondents] were entitled to be
afforded an opportunity to state their case –
including their
defence and mitigation".
c.
"That the [respondents'] contracts of
employment incorporate the sectoral determination – which is
binding and stipulates
in clause 27 that the termination of the
[respondents'] contracts can be done for any cause recognised by law"
followed by
a submission that the respondents' contracts of
employment "were terminated unlawfully and that this is not
recognised by
the law."
d.
"The [respondents] have now approached [the
court
a quo
]
to exercise their contractual remedy of a (sic) specific performance
– in that they should be reinstated with all the benefits."
e.
In para 35 of their replying affidavit the
respondents state that they do not place reliance on the fairness of
the termination
of their employment. This is confirmed in para 44 of
the replying affidavit.
f.
In paras 49.17 to 22 of their founding affidavit,
the respondents alleged that they suffered hardship, grave and
irreparable harm
as a result of the termination of their employment
contracts and that they and their families "are experiencing
multiple violations
of a range of constitutional rights as a result
of the [appellant's] conduct".
[58]
In its answering affidavit, the appellant states,
"It is clear from the founding affidavit that the applicant's
case is mainly
based on fairness, whilst sparsely interposed by an
unadorned reference to section 77(3) of the BCEA". In my view,
this statement
is not a correct summary of the respondents' case as
pleaded.
[59]
The
appellant, in its answering affidavit and in its heads of argument in
the court
a
quo,
(in
challenging the court
a
quo
's
jurisdiction based on section 77(3) of the BCEA) relied on a judgment
of the Labour Appeal Court in
Tswaing
Local Municipality and Others
[29]
where
the Labour Appeal Court held that the
jurisdiction
of
that
court
cannot
be
invoked
under
section
77(3)
of
the
BCEA
where a contract of employment is terminated or cancelled, whether
lawfully or unlawfully, fairly or unfairly. The court's
reasoning was
based on the language in the section using "concerning" in
the present continuous tense and if the intention
was to refer to a
terminated contract it would have used a verb like concerned. In my
view this judgment relates to the jurisdiction
of the Labour Appeal
Court and not the High Court. It is clear from the authorities
analysed above that the jurisdiction of the
High Court is not limited
by section 77(3) of the BCEA or by section 157(2) of the LRA, save
only in so far as the exclusive jurisdiction
of the Labour Court is
conferred by section 77(1) of the BCEA and section 157(1) of the LRA.
[60]
The appellant further relied on quotations from
Prasa
where
the Labour Appeal Court warned about the potential adverse
consequences resulting from the concurrent jurisdiction of the
Labour
Court and the High Court if litigants were to plead their cases
carefully to avoid the exclusive jurisdiction of the Labour
Court by
challenging their dismissals on the basis of unlawfulness and/or
breach of contract, rather than to dispute the fairness
of the
employer's action.
However,
Prasa
followed
Baloyi
and the quotes from
Prasa
only relates to the Labour Appeal
Court's concern with the disadvantages flowing form the approach
adopted in
Baloyi
.
Prasa
is
therefore not authority for the appellant's submissions that the
court
a quo
lacked
jurisdiction in the application.
[61]
The jurisdictional issue on the papers before us,
is whether the jurisdiction of the court
a
quo
has been ousted by virtue of the
provisions of section 77(1) of the BCEA or by section 157(1) of the
LRA.
Both those sub-sections place certain
matters within the exclusive jurisdiction of the Labour Court.
The jurisdictional issue is not whether the
respondents have pleaded their case (for the relief sought in the
notice of motion)
in a manner that brought their case within the
jurisdiction of the court
a quo
.
Put differently, in a manner that will establish,
or engage, the court
a quo
's
jurisdiction. In dealing with the merits below, I point out that the
respondents' pleadings lack essential allegations necessary
for a
finding in their favour by the court
a
quo.
In my view, those shortcomings do
not result in the court a
quo
not
having had jurisdiction in the application.
The
effect thereof is that the respondents' pleadings did not justify a
finding in their favour on the merits.
[62]
In the minority judgment of
Chirwa
Chief Justice Langa said:
"It seems to me
axiomatic that the substantive merits of a claim cannot determine
whether a court has jurisdiction to hear
it. That much was recognised
by this Court in
Fraser v Absa Bank Ltd.
Van der Westhuizen J,
when deciding on what constitutes a constitutional issue, held as
follows:
'An issue does not become
a constitutional matter merely because an applicant calls it one. The
other side of the coin is, however,
that an applicant could raise a
constitutional matter, even though the argument advanced as to why an
issue is a constitutional
matter, or what the constitutional
implications of the issue are, may be flawed. The acknowledgement by
this Court that an issue
is a constitutional matter, furthermore,
does not have to result in a finding on the merits of the matter in
favour of the applicant
who raised it.'
The corollary of the last
sentence must be that
the mere fact that an argument must
eventually fail cannot deprive a court of jurisdiction
."
(Footnotes omitted) (Emphasis added)
[63]
The following statement by Chief Justice Lange in
his minority judgment in
Chirwa
is
also relevant to the manner in which the respondents pleaded their
case in the application, or failed to plead facts essential
for a
finding in their favour on the merits:
"[Ms Chirwa]
formulated her case on the basis of PAJA, and a court must assess its
jurisdiction in the light of the pleadings.
To hold otherwise would
mean that the correctness of an assertion determines jurisdiction, a
proposition that this Court has rejected.
It would also have the
absurd practical result that whether or not the High Court has
jurisdiction will depend on the answer to
a question that the court
could only consider if it had that jurisdiction in the first place.
Such a result is obviously untenable."
[64]
The
merits of the respondents pleaded case (with which I will deal below)
are not relevant in determining the court
a
quo
's
jurisdiction.
[30]
[65]
The
respondents' allegation that the appellant failed to observe the
audi
alteram partem
rule
in respect of the disciplinary hearing is, in my view, a complaint
about the lawfulness of the disciplinary process –
audi
alteram partem
being
a principle of our law which has allegedly not being complied with -
and not in the first instance a complaint about the fairness
of that
process. The fact that a failure to comply with the
audi
alteram partem
rule
may also be, and probably is, unfair is coincidental, as decided in
Fedlife
[31]
.
[66]
For all the above reasons, I am satisfied that the
respondents' pleaded case in the application in the court
a
quo
was a claim based on an alleged
unlawful termination of their employment contracts and not as a claim
based on an unfair labour
practice or unfair dismissal in respect of
which the Labour Court has exclusive jurisdiction. The relief which
the respondents
sought in para 2 of the notice of motion in the
application is to declare the appellant's decision to terminate their
employment
contracts
unlawful,
not
unfair.
[67]
In view of the aforesaid the court
a
quo
held (correctly in my view) that it
had jurisdiction to hear the application.
The merits
[68]
The respondents' grounds for the relief sought in
the Application have been summarised in para [57] above, which we
will deal with
in turn.
The appellant should
have appealed the orders in its previous urgent applications instead
of having charged the respondents
[69]
The appellant's
25
August Urgent Application
(to declare
the respondent's strike unlawful) was dismissed by the Labour Court.
The appellant accepted that judgment.
[70]
The appellant's
27
August Urgent Application
was not heard
and struck of the roll for lack of urgency. The Labour Court did not
grant an order that the appellant could have
appealed.
[71]
A Rule
Nisi
was
issued in the
Ex parte
application.
The appellant's position is that there is no basis to have appealed
that order.
[72]
In my view, the respondents' position (that the
appellant's decision to charge the respondents in a disciplinary
hearing was done
because the appellant was unsuccessful in the
aforesaid three court applications) is without merit. The charges
against the respondents
arose out of their conduct during the strike
and not as a result of the outcome (or lack thereof) in any of the
three urgent applications
launched by the appellant.
Contravention of the
appellant's internal policy
[73]
The respondents did not attach a copy of the
alleged policy of the appellant to their papers. They further did not
plead the terms
of policy that the appellant allegedly contravened
nor did they plead the alleged contravention thereof.
[74]
The appellant stated in its answering affidavit
that it does not have such policy.
[75]
The appellant stated in its answering affidavit
that it prescribes to and follows Schedule 8 to the LRA
being
a code of good practice for dismissal of employees.
[76]
In its replying affidavit, the respondents state
that, " … the notice to calling the applicants
[respondents in the
appeal] to attend the disciplinary hearing
"
incorporated the provisions of its
internal procedure
" and that
"Annexure AA1 to the Founding Affidavit [the notice to attend a
disciplinary hearing] issued by the [appellant]
make
(sic)
reference
to the internal policy which the disciplinary hearing was constituted
(sic)." (Emphasis added).
[77]
The notice to attend a disciplinary hearing
attached to the respondents' founding affidavit sets out the
respondents' rights and
obligations in respect of the disciplinary
hearing. These include their rights to be represented, to state their
case, the right
to call witnesses and that, in the event of a failure
to attend the inquiry, it may continue in their absence. These rights
are
stated to be "In terms of the Company's disciplinary policy
and procedure."
[78]
The allegations by the respondents (that the
appellant's notice to attend a disciplinary
hearing
"incorporated
the
terms
of
internal
procedure"
and
that Annexure AA1 to the founding affidavit issued
by the [appellant] contains a reference to the internal policy)
plainly did not
place the alleged policy or internal procedure before
the court.
In addition, the alleged breach
of the policy and/or internal procedure has not been pleaded as
pointed out above. Even on the assumption
that the respondents'
rights stipulated in the notice to attend a disciplinary hearing
constitute the policy and procedure that
the appellant allegedly
breached, the respondents did not plead which of those policies have
been breached and in what respects
it has been breached, save only in
respect of allegation that the appellant did not comply with the
audi
alteram partem
rule which I deal with
below.
[79]
It must follow that the respondents' application
in the court
a quo
was
not properly pleaded in a manner which justified granting the orders
by the court
a quo
in
the application
.
The appellant
allegedly failed to comply with the Sectoral Determination
[80]
The respondents allege that the appellant's
contracts of employment incorporate the Sectoral Determination which
stipulates in clause
27 that the respondents' contracts can be
terminated without notice for any cause recognised by law.
In
this regard the respondents merely stated that their contracts of
employment "were terminated unlawfully and that is not
recognised by the law." The respondents did not place anything
before the court
a quo
to
justify a finding regarding an alleged breach, or unlawful
termination, of the relevant employment contracts.
The appellant
allegedly contravened the "audi-principle"
[81]
In para 49.9 of their founding affidavit, the
respondents allege that the disciplinary hearing contravened "the
audi
principle"
stating that the respondents were "entitled to be afforded an
opportunity to state their case – including
their defence and
mitigation".
[82]
There are differences between the versions of the
appellant and the respondents in respect of the disciplinary hearing
conducted
on 30 August 2023.
a.
The respondents allege that the notices were
"dumped on the floor at the vicinity which the [respondents]
were embarking on
the strike" and that they received the notices
"at night".
b.
These allegations are denied by the appellant in
para 46 of its answering affidavit stating that the respondents
refused to accept
the notices and tore them up.
c.
It is clear from the affidavits that the
respondents received the notices as they brought an urgent
application to interdict the
disciplinary hearing from taking place.
d.
The respondents alleged that they arrived at the
venue to attend a "mass disciplinary hearing" and that
"upon arrival,
the [respondents] were denied access - the police
and security guards chased them away."
e.
The appellant admitted that the respondents
arrived at the venue where the disciplinary enquiry was held.
However, they deny vehemently
that the respondents were denied access
and that the police and security guards chased them away. The
deponent to the appellant's
answering affidavit,
Ms
Jennifer
Angelides,
stated
that
around 17:15
on 30
August 2023 three persons entered the conference room, one of which
was Mr Makwela who deposed to the respondents' founding
affidavit.
When he was asked whether they were ready to proceed, he indicated
that the respondents sought a postponement. The chairperson
of the
disciplinary proceedings, Adv B Delport, refused to grant a
postponement for the reasons stated in his report.
f.
Adv Delport's findings are attached to the
respondent's founding affidavit and
have,
to
the
extent
relevant,
been
quoted
in
para
[16]
above. Adv Delport stated in para 3 of
his findings that, "Some of the Employees [respondents] were
gathered at the premises
of the Hotel but never actually attended the
disciplinary hearing and remained in the lobby of the Hotel of their
own free will
and volition. When asked by Mrs Schoeman who was going
to be the employee representatives, as there was no way to hear them
all,
no response was given, and they began singing and caused great
uproar and disturbance in the Hotel. Due to the elected
non-appearance
of the remainder of the Employees, the disciplinary
hearing proceeded."
[83]
The respondents did not challenge the
chairperson's findings, save to state in para 44 of the founding
affidavit, that they received
a document "
purporting
to be the chairpersons' findings."
[84]
The court
a quo
made
the following observations and findings:
a.
The court
a quo
referred, in para [30] of the Judgment,
to the "Plascon Evans principles" but, in my view, failed
to give effect to that
principle in respect of the factual disputes
between the parties referred to above.
b.
In para [34] of his judgment, Phahlamohlaka AJ
states that:
"…the
[appellant] in its own answering affidavit, admits that the
applicants were removed from the venue where the disciplinary
hearing
was held because they were unruly."
c.
The
court a quo accepted the respondents' version in respect of the
events at the disciplinary hearing (referred to in para [16]
above)
which was denied by the appellant who gave its version of those
events in its answering affidavit. The appellant's version
corresponds with the chairperson's findings attached to the founding
affidavit. The statements in the chairperson's findings stood
uncontested before the court
a
quo
.
In view of the aforesaid, the court
a
quo
's
statement that it applied the principle as expressed in
Plascon
Evans Paints Ltd v Van Riebeeck Paints
[32]
(
Plascon
Evans
)
to the facts before it, cannot be upheld.
[85]
In
Plascon
Evans
the
Appellate
Division
of
the
High
Court
(as
it
then
was)
clarified and qualified the rule regarding
disputes of fact in motion proceedings thus:
"The main
consequence is simply that, in terms of the abovementioned general
rule, where the affidavits in this case raises
real and bona fide
disputes of fact, the [applicant] is bound to accept the respondent's
version of the facts."
[86]
The exceptions to this general rule were phrased
as follows by the Appellate Division in
Plascon
Evans
:
"In certain
circumstances denial by respondent of a fact alleged by the applicant
may not be such as to raise a real, genuine
or
bona fid
e
dispute of fact" and "where the allegations or denials by
the respondent are so far-fetched or clearly untenable that
the court
is justified in rejecting them merely on the papers".
[87]
These exceptions to the general rule do not apply
in this case. Here the appellant's version of the events at the
disciplinary hearing
were confirmed by the report of the independent
chairperson at the disciplinary hearing. The court
a
quo
erred in not accepting the
appellant's version of the facts in respect of the events at the
disciplinary hearing.
[88]
Based on the appellant's version of the facts,
confirmed by the report of the chairperson of the disciplinary
hearing, the respondents
were given an opportunity to be heard but
that they did not avail themselves of that opportunity.
Alleged hardship, and
multiple violations of a range of constitutional rights
[89]
The respondents filed a number of confirmatory
affidavits setting out the detail of the financial hardship that they
are suffering
as a result of the termination of their employment
contracts. The court
a quo
did
not make a finding in this regard and the issue does not arise in
this appeal.
[90]
The alleged violations of the "range of
constitutional rights that were implicated" were not pleaded in
the Application,
the court
a quo
did
not make a finding in respect thereof and there is therefore no
constitutional issue before us in this appeal.
Conclusion
[91]
For the reasons set out above, the appeal must
succeed.
Order
[92]
In the result, I make the following order:
1
The appeal is upheld.
2
The order of the court
a
quo
is set aside and replaced with the
following:
2.1
The application is dismissed with costs.
2.2
The respondents are ordered to pay (jointly and
severally, the one to pay the other to be absolved) the costs of this
appeal on
Scale C.
DHL BOOYSEN ACTING
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
JOHANNESBURG
MODIBA J (VAN OOSTEN J
concurring)
[93]
I have had the pleasure of reading the judgment
eloquently written by my brother Booysen AJ. Although I agree with
the order proposed
by him, I respectfully disagree with the finding
that the court a
quo
enjoys
jurisdiction over the respondents’ unlawful dismissal claim. I
set out my reasons below.
[94]
The judgment of Booysen AJ fully sets out the
background facts and the history of the litigation between the
parties. It quotes
section 77(3) of the Basic Conditions of
Employment Act 75 of 1997 (BCEA), and section 157(2) of the Labour
Relations Act 66 of
1995 (LRA), which confer concurrent jurisdiction
on the Labour Court and High Courts over employment matters. It also
deals extensively
with various judgments where courts grappled with
determining the contours of the jurisdiction of these courts in terms
of these
statutory provisions. It is not necessary for me to repeat
these exercises. I only refer to background facts, statutory
provisions
and applicable judgments to the extent necessary to place
my reasons in context.
[95]
The
applicable legal principles when determining whether a matter falls
within the exclusive jurisdiction of the Labour Court, thus
ousting
that of civil courts, have by now become well-settled. In the
judgment of Booysen AJ, paragraph 75 of the Constitutional
Court
judgment in
Gcaba
v Minister for Safety and Security and Others
[33]
,
is quoted, where those are articulated. I summarise them below as
applied in other judgments referenced in the judgment of Booysen
AJ:
a.
Where
section 157(2) or any other provision of the LRA or other legislation
confers exclusive jurisdiction on the Labour Court,
the jurisdiction
of the High Court over labour matters is ousted
[34]
;
b.
The
jurisdiction of the High Court over a labour matter is not simply
ousted because a dispute falls within the sphere of labour
relations.
[35]
For
the jurisdiction of the High Court to be ousted, the matter ought to
fall within the exclusive jurisdiction of the Labour Court.
In such a
case, the court a
quo
’
s
jurisdiction, in terms of section 77(3) of the BCEA, may not be
engaged.
c.
The
fact that a claim may be founded on an unfair dismissal does not
obligate a litigant to formulate his or her claim as such and
to
approach the Labour Court. He may approach the High Court to enforce
a right that does not emanate from the LRA;
[36]
d.
Jurisdiction is determined based on pleadings and
not the substantive merits of the case. Pleadings [which include a
notice of motion
and founding affidavit in application proceedings]
must be interpreted to determine whether an applicant is asserting a
claim that
falls within the exclusive jurisdiction of the Labour
Court. If so, then the jurisdiction of the High Court is excluded.
[96]
The respondents allege that their dismissal by the
appellant is unlawful. The remedy they seek is for specific
performance in the
form of retrospective reinstatement of their
employment contracts and benefits. They seek to engage the
High
Court’s
jurisdiction
in
terms
of
section
77(3)
of
the
BCEA.
They expressly
disavow reliance on the fairness of the termination of their
employment contracts or any provision of the LRA.
[97]
The
respondents, in my view, have unsuccessfully attempted to engage the
jurisdiction of the court a
quo
to
enforce right(s) that do not emanate from the LRA. The cause of
action that arises from the right to
audi
alteram partem,
allegedly
infringed by the appellant, is not pleaded at all. Their
constitutional rights allegedly infringed by the appellant are
vaguely pleaded, and the cause of action that arises from such
infringement are likewise not pleaded. In fact, as I find below,
they
pleaded their case to specifically mask a cause of action that falls
within the exclusive jurisdiction of the Labour Court,
thus ousting
that of the High Court, as envisaged in section 157(1) of the LRA.
Their case as pleaded, implores me to heed the
Constitutional Court’s
warning in
Gcaba
that
the special status of the Labour Court ought to be protected, and
that section 157(1) should not be interpreted to also confer
jurisdiction on the High Court over matters falling within exclusive
jurisdiction of the Labour Court.
[37]
This warning ought to extend, as I do extend it in this judgment, to
an interpretation of section 77(3) of the BCEA.
[98]
The respondents pleaded their claim in their
founding affidavit as follows:
“
7.1
The appellant ought to have appealed orders of the High Court in the
urgent applications and not instituted a disciplinary action.
Therefore, the court
a
quo
should
have found that the termination of their employment contracts
[pursuant to the disciplinary action] is unlawful. This conduct
[on
the part of the appellant] is unlawful, unconstitutional and
undermines the authority of the judiciary in relation to the
aforesaid urgent applications.
7.2
The appellant contravened its internal policy, and
the
audi alteram (audi)
principle
when it denied the respondents an opportunity to state their case
[during the disciplinary proceedings].
7.3
The respondents’ employment contracts
incorporate a sectoral determination in clause 27 which states that
employees’
contracts may only be terminated for any cause
recognised by law.
7.4
They seek reinstatement of their employment
contracts to restore their plight, dignity and constitutional
rights.”
[99]
The respondents vaguely described the
constitutional rights allegedly breached. A cause of action based on
breach of constitutional
rights is not pleaded. Booysen AJ correctly
found [at paragraph 85] that this cause of action was not properly
pleaded and the
court
a quo
accordingly,
cannot be faulted for not determining the merits thereof.
[100]
It is unclear whether the respondents’ cause
of action is based on their employment contracts, the appellant’s
internal
policy or the sectoral determination that is referenced in
their founding affidavit. They vaguely place reliance on all these
instruments
without pleading a cause of action that is legally
recognised in our law, which would entitle them to specific
performance in the
form of reinstatement of their employment
contracts and benefits.
[101]
The
alleged unlawful
institution of disciplinary proceedings does not engage the court a
quo
’
s
jurisdiction simply for the reason that no such cause of action
exists in our law. In fact, exercising a choice not to appeal
an
order of the Labour Court dismissing the 25 August 2023 urgent
application [in which the appellant sought to interdict a threatened
strike by the respondents], or failing to further pursue in the
ordinary course the 27 August 2023 urgent application [in which
the
appellant sought an interdict to regulate a strike action by the
respondents], which the Labour Court struck from the roll,
is
perfectly permissible in our law. Where reliance is placed in
subsequent legal proceedings on an issue or facts that have already
been determined, estoppel and
res
judicata
are available to the
respondents as a defence.
[102]
As
Booysen AJ found, the
provisions of the internal policy allegedly not complied with, are
not pleaded. A proper cause of action based
on breach of the internal
policy is likewise, not pleaded.
[103]
In his judgment, Booysen AJ found that the court a
quo
’
s
jurisdiction is engaged because contravention of the
audi
principle, which is a principle of our
law, is alleged.
Audi
is
a fundamental principle in our law. It affords one the right to a
fair hearing, and the opportunity to respond to evidence presented
against him or her. However, an allegation that the applicant has
infringed the respondents’ right to
audi
,
without more, does not give rise to a cause of action with a remedy
for specific performance. The respondents merely pleaded infringement
of this right. The alleged breach [of the right to
audi
]
must give rise to a pleaded cause of action that enjoys recognition
in our law for the court a
quo
’
s
jurisdiction to be engaged.
[104]
The
respondents have
notably not pleaded a term of their employment contract that affords
them that right, which the appellant is alleged
to have breached.
Therefore, the conclusion that they have not engaged the court a
quo
’
s
jurisdiction over a legally recognised cause of action that arises
from the alleged breach of their right to
audi
[outside the LRA] is inescapable. The
conclusion reached by Booysen AJ, that “
audi
alteram partem
being a principle in our
law which has allegedly not been complied with” is inconsistent
with the respondents’ case
as pleaded. They do not rely on this
principle as of general application in our law. They only just
pleaded breach of their right
to
audi,
implying breach of an internal policy
which forms part of their contracts of employments.
[105]
In terms of section 188(1)(b) and (2) of the LRA,
the respondents enjoy a statutory right to
audi
prior to their contracts of employment
being terminated. These sections provide as follows:
“
188
Other
unfair dismissals
(1)
A
dismissal
that
is
not
automatically
unfair,
is
unfair
if
the
employer
fails
to prove-
(a)
that the reason for
dismissal
is a fair reason-
(i)
related to the
employee's
conduct or capacity; or
(ii)
based on the employer's
operational
requirements
; and
(b)
that the
dismissal
was effected in accordance with a fair
procedure.
(2)
Any person considering whether or not the reason
for
dismissal
is
a fair reason or whether or not the
dismissal
was effected in accordance with a fair
procedure must take into account any relevant
code
of good practice
issued in terms of
this Act
.”
[106]
In the absence of a specific provision in their
employment contracts, or an internal policy which forms part of their
contracts
of employments, affording them the right to
audi
prior to their employment contracts
being terminated, the respondents had no alternative but to plead a
cause of action for unfair
dismissal in terms of section 188(1)(b)
read with section 188(2) of the LRA which affords them this right.
Having done that would
have brought their claim within the provision
of section 157(1) of the LRA, which confers exclusive jurisdiction on
the Labour
Court. Vaguely alleging an unlawful termination of a
contract due to contravention of the
audi
principle, does not
per
se
constitute a cause of action outside
the LRA, which is recognised in our law which entitles them to a
claim for specific performance.
The fact that they expressly
disavowed any reliance on the fairness of the disciplinary process or
any provision in the LRA, does
not, in itself, strengthen their case
on jurisdiction. Notably, the appellant’s version is that it
does not have the alleged
internal policy and that it has adopted a
code of good practice referenced in section 188(2) of the LRA. That
the respondents failed
to plead a cause of action arising from the
alleged breach of their right to
audi
outside the LRA, which as I have found,
justifies the inference that they have none.
[107]
The
words ‘any
matter concerning a contract of employment’, in section 77(3)
of the BCEA, do not mean that any allegation
by an employee of
wrongdoing by an employer engages the jurisdiction of the court a
quo
.
Similarly, a mere allegation or threat of infringement of a
constitutional right by an employer, does not engage the jurisdiction
of the court a
quo
in
terms of section 157(2)(a). A cause of action recognised in our law,
which arises from such allegations must be pleaded for the
court a
quo
’
s
jurisdiction to be engaged in terms of these statutory provisions.
Otherwise, litigants may vaguely plead breach of a right outside
the
LRA simply to mask a cause of action that falls within the exclusive
jurisdiction of the High Court as the respondents have
done here.
[108]
The
conclusion the
respondents seek to draw, that in terms of clause 27 of the sectoral
determination [which forms part of their employment
contracts] the
appellant acted unlawfully because it did not terminate their
employment contracts for a cause recognised by law,
must suffer the
same fate because the conduct complained of, does not flow from a
recognised cause of action in our law. The sectoral
determination on
which the respondents seek to rely is not even attached, neither is
clause 27 quoted in their founding affidavit.
[109]
I would therefore uphold the appeal with costs,
set aside the order of the court
a quo
and dismiss the respondents’
application with costs solely on the jurisdiction point.
LT
MODIBA
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
JOHANNESBURG
I agree. The following
order is made:
1.
The appeal is upheld.
2.
The order of the court a quo is set aside, and
replaced with the following: ”The application is dismissed with
costs.”
3.
The respondents are ordered to pay, jointly and
severally, the one paying, the others to be absolved, the costs of
the appeal, on
Scale C.
FHD VAN OOSTEN
JUDGE OF THE HIGH
COURT
GAUTENG DIVISION,
JOHANNESBURG
Appearances
Counsel for Appellant:
Adv W P Bekker SC
Instructed by: ML
Schoeman Attorneys
Respondents’
Attorney:
Mr ML Marweshe
Instructed by:
Marweshe Attorneys
Date of Hearing: 13
November 2024
Date of Judgment: 18
February 2025
MODE OF DELIVERY:
This judgment is
handed down electronically by transmission to the parties’
legal representatives by email, uploading on CaseLines
and release to
SAFLII. The date and time for delivery is deemed to be 18 February
2025 at 10h00.
[1]
Act
75 of 1997
[2]
An
unreported judgment of the Labour Court Case NO J1230/20.
[3]
Act
66 of 1995.
[4]
199(20)
ILJ 1300 LC at para [17].
[5]
[2009] 12 BLLR 1145
CC.
[6]
2024
(45) ILJ 228 LAC.
[7]
[2009]
12 BLLR 1145
CC.
[8]
Prasa
at
para 6.
[9]
2002
(1) SA 49 (SCA).
[10]
[2009]
8 BLLR 721 (SCA).
[11]
2010(3)
SA 601 (SCA).
[12]
(2001)
22 ILJ 1116 (LAC); [2001]5 BCLLR 501 (LAC) at para 23.
[13]
2002
(2) SA 693 (CC).
[14]
[2008]
2 BLLR 97 (CC).
[15]
Ibid
para 60. See also
Mgijima
v Eastern Cape Appropriate Technology Unit & Another
2000(2)
SA 291 (TIC) at 309C-E. and
Mcosini
v Mancotywa & Another
(1998)
19 ILJ 1413 (TK) at 1413 C-E.
[16]
(2005)
26 ILJ 1957 (SCA) at para 4-5
[17]
At
para [92].
[18]
Mgijima
v Eastern Cape Appropriate Technology Unit & Another
2000
(2) SA 2891
(Tk) at 309 C-E;
Mcosini
v Maucotywa & Another
(1998)
19 ILJ 1413 (Tk) at 1413 C – E
;
Jones & Another v Telkom SA Ltd &Others
[2006]
5 BLLR 531
(T).
[19]
2007(5)
SA 450) (SCA).
[20]
Id
at
para 12.
[21]
Id
at
para 115.
[22]
Id
at
para 121.
[23]
Id
at
para 123.
[24]
Id
at
para [151].
[25]
Gcaba
para
75.
[26]
Gcaba
para
73.
[27]
2022(3)
SA 321 CC.
[28]
Baloyi
was
followed by the Labour Appeal Court in Passenger Rail Agency of SA &
others v Ngoye & others (2024) 45 ILJ 1228 (LAC),
although
expressing concern about the disadvantages that may flow for that
approach.
[29]
Labour
Court Case No. J1230/20 delivered on 17 November 2020.
[30]
See
Baloyi
para
at 42.
[31]
See
para at 37 above.
[32]
1983(3)
SA 623 (A)
[33]
2010
(1) SA 238 (CC).
[34]
Fredericks
and others v MEC for Education and Training Eastern Cape and Others
2002(2)
SA 693 (CC).
[35]
Chirwa
v Transnet and Others
[2008]
2 BLLR 97 (CC).
[36]
Baloyi
v Public Protector and Others
2022
(3) SA 321
CC and
Passenger
Rail Agency of SA & Others v Ngoye & Others
[2024]
45 ILJ 1228 (LAC).
[37]
Gcaba
at
para 70-72.
sino noindex
make_database footer start
Similar Cases
Docrati NO obo Naidoo v Road Accident Fund (07136/2013) [2025] ZAGPJHC 86 (3 February 2025)
[2025] ZAGPJHC 86High Court of South Africa (Gauteng Division, Johannesburg)99% similar
South African Securitisation Programme (Rf) (Pty) Ltd v Hakem Group (Pty) Ltd and Another (2023/009594) [2025] ZAGPJHC 230 (6 March 2025)
[2025] ZAGPJHC 230High Court of South Africa (Gauteng Division, Johannesburg)98% similar
D.L.Z obo D.T.K and Road Accident Fund (50120/2021) [2023] ZAGPJHC 717 (21 June 2023)
[2023] ZAGPJHC 717High Court of South Africa (Gauteng Division, Johannesburg)98% similar
D.F.J.V.R v A.M.V.D.H (40377/2020) [2024] ZAGPJHC 1257 (27 November 2024)
[2024] ZAGPJHC 1257High Court of South Africa (Gauteng Division, Johannesburg)98% similar
South African Reserve Bank v YWBN Mutual Bank (2025/059995) [2025] ZAGPJHC 518 (23 May 2025)
[2025] ZAGPJHC 518High Court of South Africa (Gauteng Division, Johannesburg)98% similar