Case Law[2024] ZAGPJHC 732South Africa
Gore v Rand Mutual Assurance Company Ltd (A5045/2022) [2024] ZAGPJHC 732; [2024] 4 All SA 510 (GJ) (13 August 2024)
High Court of South Africa (Gauteng Division, Johannesburg)
13 August 2024
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# South Africa: South Gauteng High Court, Johannesburg
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## Gore v Rand Mutual Assurance Company Ltd (A5045/2022) [2024] ZAGPJHC 732; [2024] 4 All SA 510 (GJ) (13 August 2024)
Gore v Rand Mutual Assurance Company Ltd (A5045/2022) [2024] ZAGPJHC 732; [2024] 4 All SA 510 (GJ) (13 August 2024)
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sino date 13 August 2024
IN THE HIGH COURT OF
SOUTH AFRICA
GAUTENG LOCAL
DIVISION, JOHANNESBURG
CASE
NO:
A5045/2022
1.
Reportable Yes
2.
Of
interest to other Judges Yes
3.
Revised: Yes/No
In
the matter between:
VINCENT
CHARLES GORE
Appellant
and
RAND
MUTUAL ASSURANCE COMPANY LIMITED
Respondent
ORDER
MAIER-FRAWLEY J
(Manoim J and Allen AJ concurring):
Introduction
1.
In July 1996 the appellant was involved in
a motor vehicle collision whilst
en
route
to
work. At the time, he was employed as a junior engineer at Western
Areas Gold Mining Company Limited and was 23 years of age.
He
sustained a spinal injury in the collision which rendered him a
quadriplegic and wheelchair bound for the remainder of his life.
In
the result, his budding career in mining engineering was cut abruptly
short in its early stages.
2.
By
virtue of his medical condition, the appellant was declared totally
and permanently disabled.
3.
The respondent was (and is) the entity
licensed in terms of s 30 of
the
Compensation for Occupational Injuries and Diseases Act 130 of 1993
(‘COIDA’ or ‘the Act’),
for
purposes of assessing and making payment of claims for compensation
in relation to occupational injuries or diseases arising
out of
employment,
inter alia
,
in the mining sector.
4.
In
1996, a claim was lodged on behalf of the appellant with the
respondent for compensation in terms of COIDA pursuant to which
an
award of compensation was made in favour of the appellant on 18
August 1997 (the
original
award
).
Thereafter, on 30 April 2012, the original award was reviewed by the
respondent at the instance of the appellant, which led to
increased
compensation being paid to the appellant in respect of his monthly
pension (the
revised
award
).
The revised award included, amongst others, benefits such as an
annual bonus and housing allowance, as envisaged in s 63 of COIDA,
as
well as an augmentation benefit and a constant care allowance. The
appellant thereafter queried the computation of the revised
award. He
was informed on 9 December 2014 that the respondent had reviewed the
revised award, as a result of which a reduced award
was made (the
reduced
award
).
The reduced award appeared to exclude applicable benefits payable
under s 63 of COIDA, whilst the augmentation benefit which
had been
paid to the appellant under the revised award, was set aside with
immediate effect, resulting in a significant decrease
in the monthly
pension payable to the appellant.
5.
The
appellant objected to the reduced award (also referred to in the
papers as ‘the deprivation decision’) in an email,
dated
11 January 2015, addressed to the Board Chairperson of the
respondent.
[1]
A formal
objection on the prescribed form was subsequently lodged on 29
September 2017 in terms of s 91(1) of COIDA. This led to
a section 91
objection hearing being conducted before a tribunal
appointed
in terms section 91(2) of COIDA
during May and June 2021. The central issue for determination at the
hearing was whether the respondent had correctly applied s
51 of
COIDA to determine the appellant’s earnings when it made the
reduced award, including its failure to include s 63 benefits
in its
computation of the reduced award. This in turn implicated the proper
interpretation of s 51 of COIDA.
6.
On 16 September 2021, the tribunal
delivered the judgment that forms the subject of this appeal in which
it dismissed the appellant’s
objection.
7.
The appellant now appeals, in terms of s
91(5)(a)(i) and (iii) of COIDA, against the decision of the tribunal
dismissing his objection
to the reduced award.
8.
The respondent cross-appeals against the
ruling of the tribunal to condone the late filing of the appellant’s
notice of objection
after the expiry of the 180-day period provided
in s 90(1) of the Act. Its case in this regard is that the objection
was lodged
out of time and ought not to have been considered at all
because the tribunal lacked the power to condone the late filing of
the
objection.
9.
In order to properly contextualise the
reduced award, it is necessary to set out the chronology of events
that preceded the reduced
award.
Broader factual matrix
10.
The respondent is licenced in terms of s 30
of the Act ‘to carry on the business of insurance to employers
against their liabilities
to employees in terms of this Act.’
Pursuant to its licencing arrangement, the respondent provided
insurance cover to Western
Areas Gold Mine company Limited (Western
Areas) against its liability to its employees. Western Areas secured
additional cover
with the respondent for its employees. Such
additional cover was provided for in an Augmentation Policy. The
policy is relevant
to the extent that some of the benefits that were
paid to the appellant in terms of the revised award, which were
subsequently
withdrawn by virtue of the reduced award, were covered
by the Augmentation Policy.
11.
On 15 October 2012, the appellant,
represented by Blake attorneys, requested the respondent to
reconsider the original award in
terms of s 90(1)(d) of COIDA, on
grounds that it was based on a misrepresentation of facts in relation
to the amount of the appellant’s
assumed probable future
earnings, i.e., the earnings that would notionally be payable to an
employee having five more years’
experience than the claimant,
as envisaged in s 51 of COIDA. To this end, the appellant provided
amended remuneration information,
which included affidavits by one
Swanepoel and one Wagner.
12.
There
was no controversy about the fact that the original award was
incorrectly calculated and that it stood to be reviewed.
[2]
13.
By the time the original award was
reviewed, Western Areas had been sold to Goldfields. The respondent
engaged with Goldfields (the
successor employer) to obtain
information for purposes of determining the appellant’s amended
future probable earnings, i.e.,
earnings related information to
enable it to recalculate the appellant’s compensation in
accordance with s 49, read with
ss 51 and 63 of COIDA.
14.
In a letter dated 1 May 2013, Goldfields
provided the following information to the respondent, ostensibly in
accordance with the
employer’s understanding of the appellant’s
deemed-qualification and deemed-experience earnings, as envisaged in
s
51 of the Act :
“
...
l need to mention that there has been various corporate activity
since 1996 and all remuneration information has not been filed
as
this is not required by law (only need to keep 7 years information).
We
have
gone
back as far as we could and
made
certain assumptions using
that
information available
and the following salaries could be determined.
These
salaries are only basic salaries which exclude any allowances and
bonuses
(these could not be
determined which would have been applicable for Mr Gore)
The
salary determined for a Sectional Engineer which he would have got
had he obtained his Certificate of competency (which he was
busy
obtaining) would have been R 11 118,65. Had he continued to stay in
the employment there could have been the possibility of
him becoming
a Resident Engineer with the basic salary of R 16 929.62.”
(emphasis added)
The
lower figure was ostensibly indicative of the appellant’s
deemed-qualification earnings whilst the higher figure was ostensibly
indicative of the appellant’s deemed-experience earnings.
15.
In a letter addressed by the respondent to
the Department of Labour, dated 30 April 2013, the former referred to
the figures that
had been provided by Goldfields and tabulated,
amongst others, the new amounts that it determined were payable to
the appellant
in terms of the revised award. The respondent reported
as follows:
“
We
have ultimately received a response from Goldfields, Mr Gore's former
employer with confirmation of his amended future probable
earnings.
According to the projections, Mr Gore would have earned a basic
salary of R11 118.65 after 2 years having completed his
GCC.
Thereafter, he would have been a Resident Engineer with a projected
basic salary of R
163
929.62
[3]
.
Based on the above information, we revised our calculations of Mr
Gore's pensions as follows:
Current
New
Pension
R15 888.00
R35 431.37
CAA
R1 550.00
R1 550.00
Total
R 17
388.00
R36 981.37
This
amount includes an annual bonus of R 1 138.40 and a housing allowance
of R 414.00
.
The back
payments owed to Mr Gore amounts to R2 288 553.60
and his new capitalized value is R9 434 317.30.
If
Mr Gore is agreeable, we would appreciate it if he could confirm it
in writing in order that we could commence with the implementation
of
the revised pension...” (emphasis added)
16.
The respondent’s revised calculations
entitled the appellant to qualify for benefits under the Augmentation
Policy and thus
the revised award included such benefits. The figures
provided by Goldfields, the employer, were factored into the
respondent’s
revised award, as too, regular benefits that were
applicable to the appellant (ostensibly as envisaged in s 63 of
COIDA) for purposes
of arriving at the monthly amount payable
in
respect of the appellant’s recalculated pension. In addition,
the appellant was entitled to a constant care allowance in
terms of s
28 of COIDA, the amount whereof was included in the total monthly
amount that was determined by the respondent to be
payable to the
appellant (R36 981.37) under the revised award.
17.
It
is common cause that the appellant was thereafter paid in terms of
the revised award.
[4]
In
addition, the back payments (referred to in the letter above) were
paid to the appellant in two lump sum payments made on 15
July 2013
and 8 August 2013 respectively.
18.
During September 2014, the appellant
questioned whether all applicable benefits had been included in the
revised award and sought
clarity on the manner in which the
compensation, including benefits in terms of the Augmentation Policy,
had been computed. Correspondence
was exchanged between the
appellant’s representative and the respondent and eventually a
meeting was held between the parties
on 4 September 2014.
19.
On 12 September 2014, being approximately
14 months after the revised award took effect, the respondent wrote
to the appellant requesting
certain further documentation for it ‘to
consider the matter,’ including ‘the submissions made’
at the
September 2014 meeting. The respondent required: (i)
Swanepoel’s payslips for the period January to June 1996 as
well as
Swanepoel’s payslip for December 1996 reflecting his
13
th
cheque payment; (ii) the appellant’s employment contract with
Western Areas; and (iii) Swanepoel’s employment contract
with
Western Areas.
20.
Swanepoel’s
payslips were thereafter provided to the respondent,
[5]
however, the employment contracts could not be located, given the
lapse of time.
21.
On 31 October 2014, the respondent wrote to
the appellant,
inter alia
,
informing him as follows:
“
The
benefit which you are currently receiving in terms of our
Augmentation Policy was based on Mr Swanepoel's 1997 earnings, as
supplied by yourself, as opposed to his 1996 earnings. This benefit
would have been less had RMA used Mr Swanepoel's 1996 earnings
in
terms of how RMA determined the earnings for purposes of calculating
the benefit.
We
have further noted that Mr Swanepoel was a Resident Engineer at the
time of your accident, which was a very senior position in
the
Engineering profession and in all likelihood had more than five years
work expedience than you would have been entitled to
at the time. As
a result, the benefit awarded to you was premised on earnings of a
person holding a senior position with more than
the stipulated five
years working experience as required in terms of the Augmentation
Policy.
Consequently
the augmentation benefit which you are receiving was based on a
mistake or misrepresentation of fact, and thus stand[s]
to be
reviewed in terms of clause 1(b) read with clause 10 of the RMA's
Augmentation Policy.”
22.
On 9 December 2014, the respondent sent a
letter to the appellant in which it informed the appellant of the
outcome of its review
of the revised award, and of its decision to
render the reduced award. The respondent conveyed therein that the
benefit that the
appellant had been receiving in terms of the
Augmentation Policy (the amount of which had been factored into the
computation of
the revised award) ‘
was
based on a mistake and/or misrepresentation of facts in that the
benefit awarded
’ to the appellant
‘
was premised on earnings of a
person holding a senior position with more than the stipulated five
years working experience...resulting
in an overpayment of the
benefit.
’ The letter concluded
with the respondent informing the appellant that the augmentation
benefit that he had been receiving
‘
is
hereby set aside with immediate effect
.’
23.
On 12 December 2014, the respondent sent
another letter to the appellant, in which it confirmed the reduced
award and further advised
as follows:
“
We
wish to confirm that
your current Augmentation monthly pension
benefit
is R3 720.16,
which
is based on the
revised earnings of R11 118.65 received from your former
employer
.
You will appreciate that
you had
submitted the earnings of a person with more than five years working
experience than you would have been entitled to at
the time
.
This
resulted in the incorrect calculation and overpayment of your
Augmentation benefit
in the amount
of R1 490 373, 39.
As
a result,
RMA has set aside/suspended your Augmentation pension
benefit and it will remain suspended until the overpayment amount
stated above
has been refunded in full to RMA
.” (emphasis
added)
24.
In a letter dated 17 December 2014, the
respondent reported its decision to implement the reduced award to
the Compensation Commissioner
along the following lines. The
respondent conveyed that it had decided to
conduct a full audit on the appellant’s COIDA and augmentation
benefits in order to ascertain whether the benefits were accurately
calculated. During the audit process, it discovered that the
appellant had submitted incorrect earnings, which resulted in him
receiving an inflated monthly pension for the augmentation benefit.
The respondent thereafter informed the appellant that it intended
to
review his augmentation benefit, as the benefit was based on a
mistake or misrepresentation, and invited him to submit written
representations on why the benefit should not be reviewed. Despite
having been afforded an extension of time within which to do
so, no
written representations were received from the appellant. Thereafter,
the respondent reviewed the appellant’s augmentation
benefit in
terms of the Augmentation Policy, based on ‘the new future
probable earnings of R11 118.65 received from his former
employer.’
The respondent further contended that the appellant was overpaid for
his augmentation benefit by an amount of
R1 490 373, 39, ‘due
to the inflated earnings he had submitted of a person with more than
five years working experience than
he would have been entitled to at
the time.’ As a result, the respondent set aside/suspended his
augmentation pension benefit
and informed the appellant thereof in
its letter of 09 December 2014.
25.
In an email dated 11 January 2015 addressed
to the respondent’s board chairperson, the appellant objected
to the deprivation
decision/reduced award, amongst others, because
the respondent had failed to have regard to its previous own
acceptance of the
applicability of benefits such as the annual bonus
and housing allowance which had been included in the revised award
but which
had ostensibly been excluded in the reduced award.
26.
In response to that objection, during
January and February 2015, the respondent proposed that the s 51
earnings dispute (i.e., the
deprivation decision dispute) be resolved
through an arbitration process and undertook to bear the costs
thereof. Thereafter, until
October 2015, various letters were
exchanged between the appellant’s attorneys and the respondent
concerning the alternative
dispute resolution process proposed by the
respondent. I need highlight only two such letters. In a letter dated
13 March 2014,
the appellant’s attorneys requested a round
table meeting prior to the commencement of any litigation or
arbitration process.
The respondent replied thereto on 30 March 2015,
in which letter it agreed to the proposed meeting, whilst stating
that ‘Our
position is that Arbitration is the best suitable
option to resolve this matter once and for all.’
27.
The parties thereafter met and continued to
engage one another concerning the way forward. Ultimately, on 22
April 2016 the parties
agreed to resolve the s 51 earnings dispute
through arbitration. A written arbitration agreement was concluded
and an arbitrator
appointed. For reasons that remain unclear, the
arbitration process stalled thereafter.
28.
On 29 September 2017 the appellant’s
attorneys informed the respondent of the appellant’s
dissatisfaction with the fact
that the arbitration process had
stalled for over a year.
29.
As a result of the delays befalling the
arbitration process, on 29 September 2017, the appellant submitted a
formal objection on
the prescribed form in terms of s91(1) of COIDA.
30.
On 3 October 2017, the respondent
acknowledged receipt of the formal objection, despite which, it
sought to reassure the appellant,
as follows:
“
Note
that
the Augmentation Policy is a
non-statutory benefit which does not have the provision for objection
in terms of section 91
[of COIDA].
You will also appreciate
that
the matter is before an arbitrator, which is the correct
forum for adjudication of this dispute
.
We will therefore further
engage our attorneys to ensure the arbitration proceeds to finality
without any further delays.”
(emphasis added)
31.
In February 2019 the parties appointed a
new arbitrator and the arbitration proceedings commenced
de
novo.
32.
In late 2019 the new arbitrator found that
he lacked jurisdiction to resolve the s 51 earnings dispute, which
was instead to be
set down before the s 91 tribunal for adjudication.
33.
The appellant’s objection was heard
by a tribunal consisting of a presiding officer, assisted by two
assessors. A hearing
took place over seven days, where both oral and
documentary evidence was presented. On 16 September 2021, the
Presiding Officer
(presumably with the concurrence of the assessors)
delivered a judgment in which it ruled that the appellant’s
objection
was dismissed.
34.
The appellant now appeals that ruling in
terms of s 91(5)(a)(i) and (iii) of COIDA, which provides, in
relevant part, as follows:
“
Any
person affected by a decision referred to in subsection (3)(a), may
appeal to any provincial or local division of the Supreme
Court
having jurisdiction against a decision regarding –
(i)
The interpretation of this Act or any other
law;
(ii)
…
(iii)
the question whether
the amount of any compensation awarded is so excessive or so
inadequate that the award thereof could not reasonably
have been
made;
(iv)
...”
35.
Whether or not the tribunal correctly
interpreted s51 of COIDA, and whether it misinterpreted the law by
attributing an onus to
the appellant in terms of COIDA, is what
principally informs the present appeal.
Evidence presented at
Tribunal
36.
The appellant gave evidence at the tribunal
hearing and called several witnesses to testify on his behalf. For
purposes of judgment,
only salient aspects thereof need be
highlighted. In essence, the tribunal was seized with determining
whether the appellant’s
statutory s 51 earnings, as applied in
the reduced award, were correctly determined. To that end, the amount
of the appellant’s
s 51 deemed earnings, calculated on the most
favourable basis to the appellant, as envisaged in s 51, was to be
assessed and determined
at the hearing.
37.
Ultimately,
the undisputed or unrefuted evidence established that the appellant
had obtained a BSC Electrical Engineering degree
in 1994. He was the
recipient of a prestigious bursary that afforded him formal and
informal training and rotation thought different
JCI Mining
[6]
operations. He was appointed in the position of junior engineer in
January 1996 and was in the process of training for purposes
of
obtaining his government certificate of competency (GCC) when the
accident intervened. He demonstrated exceptional ability in
the
workplace, so much so, that he was appointed to the position of
fitting and turning foreman within one month, two months later
to the
position of acting engineer overseer, and shortly thereafter to the
position of acting section engineer. Albeit that these
were all
temporary positions, these appointments reveal that his talents did
not go unrecognised.
38.
Being confined to a wheelchair and being
paralysed from the neck down, means that the appellant can no longer
pursue a career as
an engineer in the mining industry.
39.
Non-variable earnings that were typically
paid by the employer (Western Areas) included a housing subsidy,
annual bonus and production
bonus (aimed at incentivizing production
safety). Non-variable earnings were paid on a uniform basis
throughout the organisation,
save that the amount of the housing
allowance of a resident engineer was greater than that of a junior
engineer.
40.
For purposes of s 51 of Coida, the
appellant’s deemed qualification would be that of a section
engineer after obtaining his
GCC. With another five years’
experience, he could have become a resident engineer.
41.
The general career trajectory of an
engineer in the mining industry is different for university graduates
(i.e. junior engineers
with university degrees or ‘degreed
engineers’ as referred to in evidence) as opposed to those
possessing only a diploma
level of education (diploma junior
engineers). The natural employment progression for a degreed junior
engineer, after obtaining
the GCC, is appointment to section
engineer, then resident engineer, then assistant manager engineer,
then manager engineer. Degreed
junior engineers are able to write the
GCC in one year, if they apply and are granted an exemption from
completing the required
two year period of training. Diploma
engineers are required to complete two years training before being
eligible to write the GCC.
More than often diploma junior engineers
fail the first time writing the exam and have to re-write same, thus
taking longer to
become qualified and thus to reach the level of
section engineer. The GCC failure rate amongst diploma engineers is
very high compared
to degreed engineers. Degreed engineers typically
do not fail the GCC exam the first time they write it. A typical
degreed junior
engineer with demonstrated capability could therefore
become a resident engineer within a period of 5 years.
42.
The expectation of management at Western
Areas was for junior engineers to sit the GCC exam as soon as they
possibly could in order
to get them to the next position as quickly
as they could. The company had no past history where degreed
engineers did not pass
the GCC. Each appointment tier comes with a
salary increase and an increase in benefits, therefore it made sense
for junior engineers
to want to progress beyond their appointment as
junior engineers.
43.
Evidence was led,
inter
alia
, in relation to the curriculum
vitae of one Warwick Morley-Jepson, representing the typical junior
engineer (as opposed to a junior
engineer having special or superior
attributes, skills and talents). Morley-Jepson had progressed to the
position of resident engineer
within a period of five years from
obtaining his GCC.
44.
Junior engineers earn in line with Paterson
C4 scale of earnings. Section engineers are typically positioned at
D4 pay grade on
the Paterson scale, whilst resident engineers are
positioned at E1 pay grade on the Paterson scale.
45.
Only Dr Dzingwa testified on behalf of the
respondent. He was the general manager for claims and medical
management at the respondent
at the time. He however had no knowledge
as to how the revised award had been computed or how the reduced
award was calculated.
He conceded that in so far as the respondent
did not have the required information regarding the appellant’s
non-variable
benefits, it ought to have sought additional information
‘in order to work out what the s63 total earnings would be.’
Principles governing
the proper interpretation of the provisions of COIDA
46.
In
Mahlangu,
[7]
the
Constitutional Court noted that
the
ends (purpose or objective) sought to be achieved by COIDA was to
afford social insurance to employees who are injured, contract
diseases, or die in the course of their employment.
[8]
The court
held
that
COIDA
must be interpreted through the prism of the Bill of Rights and the
foundational values of human dignity, equality and freedom.
To
interpret COIDA as a mere enactment of the common law would constrain
the objectives of the Constitution and have anomalous
results.
[9]
The court went on to say that COIDA must now be read and understood
within the constitutional framework of section 27
[10]
and its objective to achieve substantive equality.
47.
Statutory
provisions must be interpreted in a manner that gives effect to the
spirit, purport and object of the Bill of Rights.
[11]
Courts must prefer an interpretation that is consistent with the
rights in the Bill of Rights over one that is not, provided that
such
an interpretation can be reasonably ascribed to the section.
[12]
When faced with two interpretations of a provision, both of which are
consistent with the Constitution, the court must prefer the
interpretation that ‘best promotes’ the rights in the
Bill of Rights.
[13]
If one
interpretation limits a right and one promotes the right, the court
must prefer that interpretation which promotes the right.
[14]
48.
The
provisions of COIDA must be generously and purposively interpreted.
In
Goedgelegen
,
[15]
the Constitutional Court stated that ‘We must prefer a generous
construction over a merely textual or legalistic one in order
to
afford claimants the fullest possible protection of their
constitutional guarantees.’
49.
The provisions of COIDA ought to be
interpreted in the context of the underlying purpose of COIDA, as
stated in the Preamble of
the Act, being:
“
To
provide for compensation for disablement caused by occupational
injuries or diseases sustained or contracted by employees in
the
course of their employment, or for death resulting from such injuries
or diseases; and to provide for matters connected therewith.”
50.
In
Davis
,
[16]
the following was said:
“
The
policy of the Act is to assist workmen as far as possible. See
Williams v Workmen’s Compensation Commissioner
1952 (3) SA 105
(C) at 109C. The Act should therefore not be interpreted
restrictively so as to prejudice a workman if it is capable of being
interpreted in a manner more favourable to him.”
Statutory framework
51.
In terms of s49(1)(a) of COIDA,
compensation for permanent disablement ‘shall be calculated on
the basis set out in items
2, 3, 4 and 5 of Schedule 4 subject to the
minimum and maximum amounts.’ S49 is to be read in conjunction
with ss 51 and
63 apropos permanently disabled employees. Section 51
of COIDA reads as follows:
“
51
Compensation for permanent disablement of employee in training or
under 26 years of age
(1)
If as a result of an accident an employee sustains permanent
disablement and at the time of the accident -
(a)
was an
apprentice or in the process of being trained in any trade,
occupation or profession; or
(b)
was under 26 years of
age,
the
Director-General shall determine the earnings of such employee in
accordance with subsection (2) for the purpose of the calculation
of
compensation in terms of section 49.
(2)
(a)
In the case of an employee referred to in subsection (1)
(a)
,
his earnings shall be calculated on the basis of the earnings to
which a recently qualified person
or
a person in the same
occupation, trade or profession with five years more experience than
the employee would have been entitled
at the time of the accident,
whichever calculation is more favourable to the employee.
(b)
In the
case of an employee referred to in subsection (1)
(b)
,
his earnings shall be calculated on the basis of the earnings to
which a person of 26 years of age would normally have been entitled
if at the time of the accident he had been performing the same work
as the employee
or
a person in the same occupation, trade or profession with five years
more experience than the employee, whichever calculation is
more
favourable to the employee.” (emphasis added)
52.
Section 63 provides for the manner in which
a claimant’s earnings are to be calculated. It reads, in
relevant part, as follows:
“
(1)
In order to determine compensation, the Director-General shall
calculate the earnings of an employee in such manner as in his
opinion is best to determine the monthly rate at which the employee
was being remunerated by his employer at the time of the accident,
including
-
(a)
the value
of any food or quarters or both supplied by the employer to the date
of the accident;
(b)
any
overtime payment or other special remuneration in cash or in kind of
a regular nature or for work ordinarily performed,
but
excluding
-
(i)
payment for intermittent overtime;
(ii)
payment for non-recurrent occasional services;
(iii)
amounts paid by an employer to an employee to cover any special
expenses;
(iv)
ex gratia
payments whether by the employer or any other
person.
...
(5)
If in the opinion of the Director-General it is not practicable to
calculate the
earnings
of an employee in
accordance with the preceding provisions, the Director-General may
calculate those earnings in such manner as
he may deem equitable, but
with due regard to the principles laid down in those provisions.”
(emphasis added)
53.
Section 91 provides for objections to
decisions of the Director-General and any appeal against decisions of
the Director-General.
It reads, in relevant part, as follows:
“
(1)
Any
person affected by a decision of the Director-General or a trade
union or employer's organization of which that person was a
member at
the relevant time may, within 180 days after such decision, lodge an
objection against that decision with the commissioner
in the
prescribed manner.
(2)
(a)
An
objection lodged in terms of this section shall be considered and
decided by the presiding officer assisted by two assessors
designated
by him, of whom one shall be an assessor representing employees and
one an assessor representing employers.
(b)
...
(c)
The
provisions of sections 6, 7, 45 and 46 shall apply
mutatis
mutandis
in
respect of the consideration of an objection.
(3)
(a)
After considering an objection the presiding officer shall,
provided
that at least
one
of the assessors, excluding any medical assessor, agrees with him,
confirm
the decision in respect of which the objection was lodged
or
give
such other decision as he may deem equitable
.”
(emphasis added)
54.
It is against the backdrop of the
abovementioned legal principles and statutory framework that I now
turn to consider whether or
not the tribunal misinterpreted and thus
misapplied the provisions of s 51 (read with s 63), and s91(3) of
COIDA, as the appellant
submits it did.
Discussion
The main appeal
55.
Section 51 was ostensibly enacted to
obviate a situation where young vulnerable employees (being under the
age of 26 or those who
are still undergoing training at the inception
of their careers), who become permanently disabled as a result of
work related accidents
at a time when they have not yet had the time
to reap the benefits of established careers, are left without
adequate social insurance
over their lifetime. Young employees are
generally positioned as low income earners on the proverbial
corporate ladder, precisely
because they have yet to gain experience
or to benefit from opportunities to upskill in order to enhance their
employment and career
prospects.
56.
In terms of s 49 of COIDA, compensation for
permanent disablement is to be calculated on the basis set out in
items 2, 3, 4 and
5 of schedule 4 ‘
subject
to the minimum and maximum amounts’.
It
is common cause that the appellant’s case fell within the
parameters of item 4. He was accordingly entitled to a monthly
pension equal to 75% of the prescribed monthly earnings at the time
of the accident. In the ordinary course, the prescribed monthly
earnings of an employee who suffers permanent disablement is based on
his or her own monthly earnings at the time of the accident.
For
young claimants or those still in training at the time of the
accident, their earnings would generally be relatively low.
57.
Section 51 of COIDA establishes a more
favourable basis for compensation which is more beneficial to these
categories of employees.
The appellant was both under the age of 26
and in training to become a qualified engineer once obtaining his
GCC. He was employed
in the mining engineering industry and
conducting work within the engineering profession at the time of the
accident. By virtue
of s 51(1) of COIDA, when calculating
compensation payable to the appellant for permanent disablement in
terms of s 49 of COIDA,
the appellant’s earnings were to be
determined by the respondent in accordance with s 51(2) thereof,
which provides for two
scenarios.
58.
In the first scenario, in terms of the
plain language of s 51(2)(a), as an employee in training, the
appellant’s earnings
were to be calculated by the respondent on
the basis of the earnings to which
(i)
a recently qualified person; or
(ii)
a person in the same trade, occupation or
profession but with five years more experience than the appellant
would have been entitled
to at the time of the accident, whichever calculation was more
favourable to the appellant.
59.
In the second scenario, in terms of the
plain language of 51(2)(b), as an employee under 26 years of age, the
appellant’s
earnings were to be calculated on the basis of the
earnings to which
(i)
a person of 26 years of age would normally
have been entitled to, if at the time of the accident such person had
been performing
the same work as the appellant; or
(ii)
a person in the same profession but with
five years more experience (than the appellant) would have been
entitled to,
whichever calculation was
more favourable to the appellant.
60.
Both parties accept that s 51 creates a
legal fiction. In each instance, the provisions of s 51 contemplate
the use of a proxy to
determine the permanently disabled employee’s
deemed earnings (hereinafter referred to as the ‘disabled
employee’).
The proxy is different, depending on the
circumstances of the disabled employee at the time of the accident.
To that end, s 51
presumes the disabled employee - who is under 26
years of age or who is in training - to be in the same position as
the proxy and
then to be compensated as if he or she were earning
what the relevant proxy was earning at the time of the accident. In
each instance,
the calculation of earnings which is most favourable
to the disabled employee should be adopted.
61.
Where the disabled employee is still
in
training
at the time of the accident,
the proxy is either:
(i)
a person who is recently qualified; or
(ii)
a person in the same trade, occupation or
profession having five more years’ experience than the disabled
employee,
whichever is the more
favourable.
62.
Where the permanently disabled employee is
under the age of 26 years
at the time of the accident, the proxy is either:
(i)
a person aged 26 who is performing the same
work as the disabled employee at the date of the accident, and the
earnings are those
to which such person would ‘
normally
have been entitled’;
or
(ii)
a person in the same trade, occupation or
profession having five more years’ experience than the disabled
employee,
whichever is the more
favourable.
63.
As can be seen from the above, in both
instances provided for in s 51(1)(a) & (b), i.e. where the
disabled employee is either
under the age of 26 or is in training at
the time of the accident, one of the envisaged proxies is a person in
the same trade,
occupation or profession having five more years’
experience than the disabled employee. How then is such proxy to be
selected
for purposes of attributing such person’s earnings at
the date of the accident to the disabled employee?
64.
The applicant contends that, on a proper
interpretation, the envisaged proxy is a five-years more experienced
employee ‘
with similar attributes,
qualifications, ambitions and prospects for career advancement as the
appellant’,
regard being had to
the fact that there is no single or standard employee. In other
words, such a proxy is to be selected based
on the
subjective
career trajectory of the specific
claimant concerned. The respondent contends that on a proper
interpretation, the envisaged proxy
is a person in his unqualified
state but with five years more experience than the disabled employee
(
apropos
the trainee category) or is the same age and performing the same work
as the permanently disabled employee, but with five years
more
experience (
apropos
the under 26 category). In other words, on the respondent’s
interpretation, the disabled employee’s career trajectory
is
irrelevant.
65.
As
discussed in cases such as
Endumeni
[17]
and
Capitec,
[18]
it
is the language used, understood in the context in which it is used,
and having regard to
the
purpose of the provision that constitutes the unitary exercise of
interpretation.
Where
more than one meaning is possible each possibility must be weighed in
the light of all these factors. The process is objective,
not
subjective. A sensible meaning is to be preferred to one that leads
to insensible or unbusinesslike results or undermines the
apparent
purpose of the document. But, as
Capitec
cautioned,
whilst context remains important, ‘
The
proposition that context is everything is not a licence to contend
for meanings unmoored in the text and its structure, Rather,
context
and purpose may be used to elucidate the text’.
66.
The object or purpose of s 51 is to provide
vulnerable employees, being those who are rendered permanently
disabled in the early
stages of their working life or at a young age
(be it in a trade, occupation or profession) with the ‘fullest
possible protection
of their constitutional guarantees’, i.e.,
sufficient compensation over their lifetime, calculated on a basis
that would
be most favourable to the employee concerned. The
legislature contemplated that these categories of employees could be
locked in
a state of vulnerability for the rest of their lives and
that they may therefore depend on the benefits provided in the Act
for
longer periods than other types of claimants under COIDA. That is
no doubt why permanently disabled employees were singled out for
‘more favourable’ compensation as opposed to employees
who are not rendered permanently disabled in work related accidents
and who can, on recovery from occupational injuries or diseases,
resume their trade, occupation or profession and thereby benefit
from
promotions and incremental increases in earnings over time.
67.
COIDA
provides for a system of no-fault compensation for employees who are
injured in work-related accidents or who contract occupational
diseases. COIDA has replaced the common–law position typically
represented by civil claims of a plaintiff employee against
a
negligent defendant employer by a system which is intended to and
does enable employees to obtain limited compensation from a
fund to
which employers are obliged to contribute.
[19]
Aligned therewith is the aim of COIDA, namely, to provide security to
employees meeting the requirements of the Act in the
provision of
benefits provided for and prescribed by the Act.
68.
Having regard to the purpose of the Act
(discussed above) and its
objective
to achieve substantive equality,
I am inclined to agree with the respondent that COIDA was not
designed to provide full indemnification on an individualized basis,
based on the subjective attributes of each disabled employee. It
seeks to provide compensation to all employees equally, i.e.,
on a
uniform and objective basis. In the context of s 51, when considering
the disabled employee’s deemed earnings based
on the earnings
of a person with five years more experience than the disabled
employee at the time of the accident, a subjective
career trajectory,
based on the exceptional ability or the superior skills and
attributes of the disabled employee concerned, is
not what is
contemplated.
69.
On
the other hand, the respondent’s contended for interpretation
of a person with five years more experience in the trainee
category,
namely, an
unqualified
person in training but who has five years more experience than the
disabled employee,
is not provided for in the text of s 51 and would require a reading
into the provision.
[20]
It
also appears to me to be non-sensical when assessed contextually.
Section 51 deems the disabled employee’s earnings to
be more
than his or her actual earnings (whether as trainee or younger than
age 26) at the time of the accident. In relation to
permanently
disabled employees who are still in training at the time of the
accident, s 51(2)(a) requires that the disabled employee’s
earnings be calculated on the basis of what either a recently
qualified person was earning at the time of the accident or what
a
person in the same occupation, trade or profession
having
five years more experience (than the disabled employee) was earning
at the time of the accident, whichever calculation is
more favourable
to the disabled employee. The section does not state that the person
with five years more experience is a person
who was performing the
same work as the disabled employee in his unqualified position at the
time of the accident. Had this been
the legislature’s
intention, it would have said so, as it did in s 51(2)(b) when
providing for the first of two bases for
calculating the compensation
payable to permanently disabled employees under the age of 26 at the
time of the accident.
70.
As regards the permanently disabled
employee who was under the age of 26 at the time of the accident, the
respondent’s contended
for interpretation of a person with five
years more experience, is that the proxy is a person who is the same
age as the disabled
employee and performs the same work as the
employee, but has five years more experience. Yet this is also not
what the provision
says. In terms of s51(2)(b), the disabled
employee’s earnings must be calculated either on the basis of
(i) ‘the
earnings
to which a person of 26 years of age would normally have been
entitled if at the time of the accident he had been performing
the
same work as the employee’, or (ii) ‘on the basis
of
the earnings of
a
person in the same occupation, trade or profession with five years
more experience than the employee.’ In the first mentioned
basis, the envisaged proxy is a person aged 26 who was performing the
same work as the disabled employee at the date of the accident.
The
disabled employee’s compensation must be calculated on the
basis of what such proxy would normally have earned at the
time of
the accident. In the second mentioned basis, the proxy is a person in
the same trade, occupation or profession as the disabled
employee but
who has five years more experience than the disabled employee. Had
the Legislature intended that the proxy, being
a person with five
years more experience, was someone who had been performing the same
work as the disabled employee at the time
of the accident, it would
have said so. It did not. In my view, the Legislature sought to
differentiate the first mentioned basis
from the second mentioned
basis, by restricting the proxy in the first mentioned basis within
the under age 26 category, to a person
who had been performing the
same work as the employee, as opposed to the second mentioned basis
where there is no reference to
the envisaged proxy performing the
same work as the employee.
71.
The
‘five years more experience’ proxy in the case of the
trainee category, as envisaged in s51(2)(a), appears at first
glance
to differ from the ‘five years more experience’ proxy in
the under 26 category, as envisaged in s 51(2)(b) of
the Act. As
regards the former, the compensation is calculated with reference to
what the person in the same profession with 5
years more experience
than the disabled employee was earning at the date of the accident.
In the under 26 year category, the compensation
is determinable on
the basis of what the person in the same profession with 5 years more
experience than the employee was earning,
without reference to the
date of the accident. This may have been merely an oversight on the
part of the legislature, carrying
no attendant consequences. Where
the earnings of a five years more experienced employee is considered
without
reference to the date of the accident, such a proxy’s earnings
could conceivably then be determined at a date other than
the date of
the accident. Does this mean that the earnings of such a proxy are
his or her earnings as at another date, eg, the
date of the award?
Would such earnings be greater at the date of the award as opposed to
the date of the accident? In my view,
it is impossible to know,
absent some form of divination, which higher courts have cautioned
against when applying principles of
interpretation.
[21]
I will therefore assume, without deciding, that the proxy envisaged
for a person with five years more experience in s 51(2)(b)
is the
same proxy as that envisaged in s 51(2)(a) of the Act and that the
earnings of such proxy are to be determined at the date
of the
accident for purposes of calculating the amount of compensation to be
awarded to the disabled employee.
72.
As regards surrounding circumstances, in
the context of the mining engineering profession, the unrefuted
evidence before the tribunal
was that the typical career trajectory
of a mining engineer is progressive. Junior engineers with degrees
generally progress quicker
along the typical career trajectory
applicable to that category of employees than those having a diploma
level of education. Generally,
all junior engineers strive to become
qualified engineers as soon as possible, as this begets better
benefits and higher earnings.
It is therefore highly unlikely for a
junior engineer to remain at an unqualified level for five years.
73.
As the evidence further established, there
are two extremes within the mining engineering industry – on
the one side of the
scale, is a person like the appellant who stood
out from his peers due to his specific exceptional skills,
capabilities, drive,
determination, ambition, aspirations and thus
prospects for earlier career advancement. On the other side of the
scale, there are
those who are content to remain in a position such
as a sectional engineer for longer periods, without striving for
rapid promotions.
In between these two extremes, lies the normal or
average employee who progresses along the typical career projectory
of a mining
engineer at a normal as opposed to an accelerated pace.
74.
Taking
into account that COIDA’s objective is to achieve substantive
equality,
[22]
and having
considered the triad of text, purpose and context, whilst viewing s
51 through the prism of the Constitution, in my
view, on a proper
interpretation, a proxy representing a person with five years more
experience than the disabled employee, is
a person who has progressed
further along in his or her career over a five year period from the
date of the accident than the disabled
employee.
Apropos
the five years more experienced proxy, s 51(2) contemplates where the
normal or average junior engineer relative to the disabled
employee
would be at in his or her profession in five years’ time. The
word ‘profession’ denotes either the person’s
occupation, career or vocation.
[23]
In other words, the section contemplates a generic career trajectory
of the normal or average junior engineer possessing either
a
university degree or a diploma qualification as opposed to a
subjective career trajectory of the exceptional junior engineer.
75.
It was the respondent’s duty to
calculate the compensation payable to the appellant under COIDA for
purposes of making any
award in respect of permanent disablement, as
envisaged in s 49, read with ss 51 and 63 of the Act. In terms of
sections 6; 7;
45 and 46 of COIDA, wide investigative powers are
conferred on the respondent to obtain whatever information is needed
to enable
it to determine the most favourable basis of calculation in
respect of compensation payable to a disabled employee. It goes
without
saying that a failure by the respondent to employ all
available mechanisms to enable it to calculate the correct
compensation payable
to a permanently disabled employee under both s
51 and s 63, cannot be laid at the door of a claimant.
76.
When
reviewing any award, in terms of s 90(2) of the Act, ‘The
Director-General may, after he has considered the evidence
and
representations submitted to him and made such inquiry as he may deem
necessary, confirm, amend or set aside his decision,
and may suspend,
discontinue, reduce or increase compensation awarded.’
[24]
In terms of s 91(2)(c), a tribunal that considers an objection in
terms of s 91 of COIDA, is conferred the same wide powers
of
investigation provided for in ss 6; 7; 45 and 46 of the Act to obtain
whatever information is required to enable it to assess
an objection.
In the context of the present matter, the tribunal was tasked with
the duty to determine whether the appellant’s
s 51 earnings
were correctly determined by the respondent when computing the
reduced award.
77.
For purposes of determining the appellant’s
compensation within the context of the mining engineering profession,
the earnings
of the following four different proxies ought to have
been considered by the respondent when reviewing the revised award,
for purposes
of arriving at the reduced award, and the most
favourable outcome applied :
(i)
Re a recently qualified person: the proxy
would be a section engineer, having obtained the GCC qualification,
and the earnings of
a section engineer at the date of the accident
are to be considered;
(ii)
Re a person in the mining engineering
profession
having
five years more experience than the appellant, the respondent had to
consider where the average junior engineer would be
in his or her
career five years into the future to determine the yardstick for the
appellant’s deemed earnings. Having regard
to the evidence led
at the tribunal hearing, in the generic mining engineering career
trajectory of junior engineers with university
degrees, this would
equate to the earnings of a resident engineer at the date of the
accident, whilst in the generic mining engineering
career trajectory
of junior engineers with a diploma level of education, this would
equate to the earnings of a sectional engineer;
(iii)
Re a permanently
disabled employee who is younger than 26 at the time of the accident:
the proxy is a person aged 26 who was performing
the same work as the
disabled employee at the date of the accident. The disabled
employee’s compensation must be calculated
on the basis of what
such a proxy’s normal earnings were at the time of the
accident. In the present context, the earnings
of a junior engineer
aged 26 at the time of the accident would have had to be considered.
(iv)
Re a person in the mining engineering
profession
having
five years more experience than the appellant – in the case of
the
disabled employee who was
younger than age 26 at the time of the accident - the proxy would be
the same as in (ii) above, save that
I have assumed, without finding,
that the relevant proxy’s earnings as at the date of the
accident, are to be employed.
78.
During the tribunal hearing, evidence was
provided as to the earnings of the envisaged proxies mentioned in
paragraph 77 (i) and
(ii) above. It was incumbent upon the tribunal
to assess whether the respondent had correctly applied the provisions
of s 51, having
regard to the various bases of calculation of
earnings provided in the section, and whether the most favourable
outcome was applied
in favour of the appellant when computing the
reduced award.
79.
In reviewing the revised award, it was
incumbent upon the respondent to determine the earnings of the
different proxies contemplated
in s 51(2) in order to determine the
most favourable basis on which to compute the amount of compensation
payable to the appellant,
rather than look for ways to reduce the
compensation payable, as seemingly occurred when the reduced award
was made. I say this
for reasons that follow.
80.
It is impossible to determine from the
contents of the letter that informed the revised award (referred to
in par 15 above), the
basis upon which the respondent had computed
the revised award, save that the respondent appears to have factored
certain benefits
that the appellant was receiving (as envisaged in s
63 of the Act) into its calculations, including a constant care
allowance as
provided for in the Act. For purposes of the revised
award, the respondent took account of information provided by the
successor
employer, Goldfields. The employer had, in the letter
referred to in par 14 above, ostensibly provided the earnings of a
recently
qualified engineer, namely, that of a sectional engineer
(R11 118.65), as well as the earnings of a person with five
years
more experience than the appellant, namely, that of a resident
engineer (R16 929.62).
Ex facie
the revised award, it is not clear which of the two figures were in
fact employed in calculating the revised award, an aspect which
resulted in some controversy both at the hearing of this appeal and
in further written argument presented on behalf of the parties
in
regard thereto after the hearing of the matter.
81.
What is clear, however, is that the
respondent took account of the information, as provided by
Goldfields, for purposes of determining
the revised award. As the
chronology of events (outlined earlier in the judgment) clearly
shows, the payslips of Swanepoel were
only provided some 14 months
after the revised award was made and took effect. That means that the
respondent was in error when
stating, in its letter referred to in
par 21 above that ‘
The
benefit which you are currently receiving
[in terms of the revised award]
in
terms of our Augmentation Policy
was based
on Mr Swanepoel's 1997 earnings
,
as supplied by yourself’, and in stating in its letter 9
December 2014 (referred to in par 22 above) that the revised award
had been
based
on a mistake and/or misrepresentation of facts made by the appellant
in submitting the 1997 payslips of Swanepoel, resulting in the
revised award being premised on earnings of a person holding a senior
position ‘with more than the stipulated five years working
experience’. It will be recalled that the payslips of Swanepoel
were provided by the appellant at the request of the respondent.
82.
In computing the reduced award, as is
apparent from the respondent’s letter of 12 December 2014
(referred to in par 23 above)
that the respondent utilised the
earnings ‘
of
R11 118.65 received from your former employer’, being the
lower
of
the two figures that had been provided by Goldfields. Its
justification for doing so was allegedly that ‘‘
The
benefit which you are currently receiving in terms of our
Augmentation Policy was based on Mr Swanepoel's 1997 earnings... as
opposed to his 1996 earnings
.’.
Which particular 1997 payslip of Swanepoel was referenced, was not
indicated in the letter.
83.
But,
as I have been at pains to point out, the revised award could not
have been based on Swanepoel’s payslips (whether at
the time of
the accident in 1996 or thereafter in 1997) and could also not have
been premised on a misrepresentation of facts attributable
to the
appellant.
[25]
The appellant
was in my view, perfectly justified in seeking clarity on the
respondent’s calculations regarding the revised
award and not
least of all, in objecting to the reduced award thereafter.
84.
It should be noted that the relevant
chronology of facts - established from the documentary evidence in
question - had been placed
before the tribunal in evidence during the
s 91 objection hearing. The tribunal was therefore placed in
possession of facts from
which to determine whether or not the
reduced reward fell to be confirmed, or if not, what equitable award
fell to be made.
85.
One of the grounds of appeal relied upon by
the appellant in these proceedings is that the presiding officer
misconstrued his powers,
as envisaged in s 91(3) of the Act, in
simply dismissing the objection. Section 91(3) requires of a
presiding officer to either
confirm
the decision in respect of which the objection was lodged or to give
an equitable decision. In simply dismissing the objection,
the proper
s 51 determination of the appellant’s compensation in terms of
the reduced award, which constituted the crux of
the objection to be
considered by the tribunal, remained unresolved by virtue of the
dismissal order.
86.
In par 10 of
the judgment, the presiding officer recorded that
'RMA
argued that Mr. Vincent Gore submitted a pay slip of a Resident
Engineer when he queried his compensation award and
that
resulted in overpayment when Gore's pension was reviewed internally
and recalculated
[i.e.,
in terms of the revised award].
That
has resulted 'in suspension of monthly pension
'
[i.e., in terms of the reduced award]. As has been demonstrated
above, in accepting the respondent’s argument aforesaid,
the
tribunal perpetuated the error that had been made by the respondent
when seeking to justify its deprivation decision for purposes
of the
reduced award.
87.
In paras 11
and 12 of the judgment, the presiding officer attributed an onus upon
the appellant to prove the amount of compensation
that was payable to
him in terms of s 51 of the Act, stating that
"The
Objector is Dominus Litis in this matter and he needs to prove his
case on the balance of probabilities. The Objector
failed to prove
that he submitted the correct pay slip of the Sectional Engineer or
the salary of the Sectional Engineer with 5
years’ experience
in 1996, in terms of Section 51 of COIDA
.”
This conclusion was wrong, both in fact and in law. Section 51(2),
properly construed, refers to the
earnings
(salary) in 1996
(the date of the accident) of one type of proxy (a person with five
years more experience than the disabled employee), which s
51(2)(a)
of the Act requires be considered. Put differently, the reference in
s 51(2)(a) to the time of the accident is a reference
to the
envisaged proxy’s earnings at such date, as opposed to the
proxy’s amount of experience in years, at such date.
The person
with ‘five years more experience’ is determinable with
reference to either the generic career trajectory
of those
permanently disabled employees who achieved a graduate level of
education (university degree), the proxy
in
casu
in
such category being a resident engineer, or with reference to the
generic career trajectory of those permanently disabled employees
who
achieved a diploma level of education, the proxy
in
casu
in
such category being a section engineer.
88.
By attributing
an onus to the appellant under the provisions of COIDA, as it did,
the tribunal wholly misconceived or misinterpreted
the provisions of
COIDA, more particularly, those set out in s 49, read with ss 51 and
63. Sections 6,7,45 and 46 of COIDA impose
a duty upon the respondent
to investigate and procure factual information in support of the
various bases of calculation provided
for in s 51 (2)(a) & (b),
including the disabled employee’s earnings under s 63, for
purposes of determining the amount
of compensation payable to the
disabled employee on the most favourable basis. The Act casts no onus
on the permanently disabled
employee to prove the amount of
compensation payable to him in terms of the Act, nor to prove that
the award objected to, was incorrectly
calculated. In terms of s
91(1)(c), the tribunal is vested with the same wide investigative
powers as the respondent to determine
whether or not the award
objected to was correctly calculated in terms of s 51 of the Act, for
purposes of determining, in terms
of s91(1)(3) of the Act, whether or
not the award should be confirmed, and if not, for purposes of
reaching some other equitable
decision vis-à-vis the
objection. The process is by its nature inquisitorial as opposed to
adversarial.
89.
The judgment
concludes, in par 14, with the following: "
The
wording of Section 51 is very clear and
it
does mention career projection
,
trajectory and/or career promotion as it was argued by the
Objector
"(emphasis
added). On a proper reading of the judgment, it appears that, in
relation to the underlined portion of the above
quote, the presiding
officer meant to say that s 51 does
not
mention
career projection. In so finding, the tribunal misinterpreted what s
51 envisages.
90.
In the light of the aforegoing, the outcome
of the tribunal hearing cannot stand and the tribunal’s
decision properly falls
to be reconsidered on appeal.
91.
Returning to the question concerning what
deemed earnings the respondent employed for purposes of its revised
award, i.e., that
of section engineer or resident engineer, suffice
it to say that the appellant contends that the earnings of a section
engineer
were likely employed, whilst the respondent contends that
the earnings of a resident engineer were likely employed. Evidence
provided
at the tribunal hearing was referred to by the parties’
in their respective heads of argument, and formed the basis of
certain
inferences sought to be drawn therefrom.
92.
In the respondent’s letter, dated 12
December 2014, in which it informed the appellant that ‘
your
current Augmentation monthly pension benefit
[i.e. that which had been paid pursuant to the revised award] is R3
720.16,
which
is based on the revised earnings of R11 118.65 received from
your former employer
.’
This was a direct recordal by the respondent of the earnings utilised
by it in calculating the revised award. In so advising,
the
respondent could not have been mistaken, for on 17 December 2014, it
advised the Compensation Commissioner that the revised
award had been
based on ‘
the
revised earnings of R11 118.65 received from
[appellant’s]
employer.’
There is
no reason to doubt the correctness of what the respondent had itself
established and conveyed in its official correspondence
of December
2014, contemporaneous with the reduced award.
93.
Suffice
it to say that the respondent, being the party who had exclusive
intimate knowledge of its own calculations and of the basis
upon
which it arrived at the revised award, presented no oral evidence
before the tribunal. What remains indisputable, however,
is the
fact that the reduced award appears
not
to have included the constant care allowance and s63 regular
benefits, which ought to have been included in the computation of
the
reduced award and which had also previously been included in the
computation of the revised award.
[26]
Interestingly, no misrepresentation of facts was (or is) relied on by
the respondent for its exclusion of the amount of these benefits
in
calculating the reduced award.
[27]
94.
It may be recalled that the reduced award
not only diminished the monthly augmentation benefit found to be
payable to the appellant,
but the recalculated augmentation benefit
was withheld and set off against a debt erroneously considered by the
respondent to be
due to it by the appellant.
95.
In so far as the earnings of a
section engineer (appellant’s deemed earnings) were employed in
the computation of the revised
award (being the lower of the two
figures provided by the employer), the appellant indicated at the
hearing of the matter that
he is content to abide by the calculations
employed by the respondent in the revised award, which he seeks be
reinstated in order
to bring finality to the proceedings between the
parties. Given the long history of protracted litigation between the
parties,
the obvious prejudice to the appellant in receiving the
reduced award, and the fact that, based on the evidence at hand, this
court
is in as good a position as anyone to assess the award payable
to the appellant, it is in the interests of justice that finality
be
reached, and that the revised award be reinstated.
Cross-appeal
96.
Section
91(1) of COIDA provides that objections against the decision of a
commissioner may be lodged within 180 days after the decision.
The
respondent contends that s 91(1) of COIDA does not permit any form of
condonation and neither a court nor a tribunal established
to
consider an objection may condone non-compliance with a statutory
period ‘unless the legislation has expressly or by necessary
implication conferred such power’. In this regard, reliance was
placed on
Shield,
[28]
a case that is, however, distinguishable on its facts.
97.
The issue to be
decided on appeal in
Shield,
was whether, in an urgent application brought in terms of sec. 24 (2)
of Act 56 of 1972 for extension of time within which to serve
summons
in a third party action, the Court or a Judge may, by virtue of the
provisions of Supreme Court Rule 6 (12), condone short
service of the
papers on a respondent outside the area of jurisdiction of that Court
or Judge, despite the provisions of sec. 27
of the Supreme Court Act,
59 of 1959. The court was not seized with the consideration of a
constitutional right, as implicated
in the present case, let alone
the provisions of COIDA. In the circumstances, the case has no
application to the present matter.
98.
In the alternative, the respondent submits
that even if the tribunal had the power to condone non-compliance
with the time period
provided for lodging an objection, the appellant
failed to establish that good cause existed for the late noting of
the objection
and the tribunal ought therefore to have upheld the
respondent’s point
in limine
at the tribunal hearing.
99.
It may be recalled that the reduced award
or deprivation decision was made in December 2014. On the
respondent’s own version,
the 180-day period would have expired
during June 2015. During January 2015, the appellant informed the
respondent of his objection
against the decision, albeit not on the
prescribed form. A formal objection on the prescribed form was lodged
in September 2017.
But, as is apparent from the factual chronology
set out earlier in the judgment, the delay in lodging the formal
objection on the
prescribed form was caused by the pursuit, at the
instigation of the respondent, of a private arbitration process,
which the appellant
in good faith agreed to submit to. Given that the
alternate dispute resolution process is aimed at the expeditious
resolution of
a dispute, it cannot be said that the appellant could
have contemplated the stalling of such process for a period in excess
of
a year. Nor could the appellant be penalised for participating
therein, given that he had been informed by the respondent that the
dispute (premised on his objection) did not fall within the ambit of
s91, which advice later proved to be erroneous.
100.
In
the application of COIDA, a formalistic and legalistic approach is to
be eschewed. Seen through the prism of the Constitution,
COIDA is not
predisposed to a rigorous adherence to form over substance.
[29]
101.
The respondent adopts a legalistic and
mechanical approach in relation to the 180-day requirement in s91(1),
which it argues is
mandatory, and makes no provision for condonation
for non-compliance with the time period prescribed.
102.
In
Allpay,
[30]
the Constitutional Court put it thus:
“
Formal
distinctions were drawn between “mandatory” or
“peremptory” provisions on the one hand and “directory”
ones on the other, the former needing strict compliance on pain of
non-validity, and the latter only substantial compliance or
even
non-compliance. That strict mechanical approach has been discarded.
Although a number of factors need to be considered in
this kind of
enquiry, the central element is to link the question of compliance to
the purpose of the provision. In this Court
O’Regan J
succinctly put the question in
ACDP
v Electoral Commission
as
being “whether what the applicant did constituted compliance
with the statutory provisions viewed in the light of their
purpose”.
This is not the same as asking whether compliance with the provisions
will lead to a different result.” (footnotes
omitted)
103.
The
interpretation propounded on behalf of the respondent is incompatible
with the injunction
in
s 39(2) of the Constitution, which enjoins courts, when interpreting
any legislation, to promote the spirit, purport and objects
of the
Bill of Rights.
Consistent
with this injunction, the interpretation of s 91(1) must be one which
promotes this right, by considering the underlying
purpose of the
section, rather than merely its text.
As
the Supreme Court of Appeal put it in
Molokwane,
[31]
‘
Thus,
where a provision is reasonably capable of two interpretations, the
one that better promotes the spirit, purport and objects
of the Bill
of Rights should be adopted. … This purposive approach is far
more consistent with our constitutional values,
than reading the
section narrowly and strictly, as preferred by the appellants
.’
104.
The respondent’s propounded
interpretation would serve to deny the appellant his right to have
the s 91(1) objection considered
by the tribunal in terms of ss
91(2)(a) and 91(3)(a) of COIDA. The constitutional right implicated
in this case is the right to
social security, and, for purposes of
considering whether the reduced award was to be confirmed or not, the
correctness of the
amount payable to the appellant as compensation in
terms of the reduced award ultimately fell to be considered by the
tribunal.
I agree with the appellant that in essence, the
cross-appeal seeks to penalise the appellant for participating in an
arbitral process
that was proposed and driven by the respondent. It
was only after the appellant objected to the reduced award in January
2015 that
the respondent adopted the resolute view that the dispute
fell outside the scope of s 91 and that it should rather be resolved
through an arbitration process. It ill-behoved the respondent to
thereafter raise a technical objection at the tribunal hearing,
based
on a narrow and legalistic interpretation of s91(1), being one which
(i) served to undermine the purpose of COIDA (discussed
above), and
(ii) failed to promote the spirit, purport and objects of the Bill of
Rights and (iii) which would inevitably inure
to the prejudice of the
appellant, with no demonstrable prejudice being (or having been)
suffered by the respondent.
105.
In my view, the wording of s 91(1) does not
preclude a consideration of an objection lodged after the lapse of
180 days. The tribunal
retains a discretion to condone non-compliance
with the statutory period on good cause shown. The use of the word
‘
may
within 180 days’,
is permissive
in nature. When looking at s 91 through the prism of the
Constitution, an interpretation that promotes the right of
access to
a tribunal hearing for purposes of considering a social security
right, is to be preferred over a legalistic interpretation
that
precludes access to a hearing to resolve a dispute.
106.
When
considering the section in the broader context of the statute, s4(1)
of COIDA sets out the functions of the Director General
(DG).
S4(1)(k) empowers the DG to decide on
any
other question
falling within his functions in connection with the administration of
the Act.
[32]
The appellant
submits that it is conceivable that an employee may be injured in the
workplace and be unable to lodge a claim within
the prescribed period
to the severity of his injuries. Granting condonation for
non-compliance with a time period stipulated in
COIDA is incidental
to fulfilling the DG’s functions in connection with the
administration of the Act. It is either a primary
implied power of an
ancillary implied power in the hands of the DG,
[33]
and it is the DG who would be well-placed to condone any
non-compliance on a consideration of the facts of each case. I am
inclined
to agree. S91 deals with objections and appeal against the
decision of the DG. As a tribunal is obliged to give effect to the
purpose
and objects of COIDA, the incidental power to consider any
question that falls within the administration of COIDA (including
non-compliance
with any time period and condonation in respect
thereof) must be implicit in its functions. The incidental power
would include
the power to regulate its procedures for purposes of
promoting the right of access to justice.
107.
The tribunal applied its mind to the facts
at hand and ruled that the respondent’s point
in
limine
fell to be dismissed. In so
doing, it correctly interpreted its powers under s 91(1) to consider
and condone non-compliance with
the stipulated 180-day period stated
therein.
108.
In
Van
Wyk,
[34]
the
Constitutional Court affirmed that the standard for an application
for condonation is the interests of justice, which depend
on the
facts and circumstances of each case. Factors relevant to such
enquiry include the nature of the relief sought, the extent
and cause
of delay, the effect of the delay on the administration of justice
and other litigants, the importance of the issues
to be raised in the
matter and the prospects of success. As a reading of the record
reveals, the tribunal had regard to the fact
that the appellant had
participated in the arbitration and had been dissuaded by the
respondent to pursue a s 91 objection; the
importance of the
implicated constitutional right; and the interests of finality in the
administration of justice.
109.
For all the reasons given, the cross-appeal
falls to be dismissed.
110.
As regards costs, there are no
circumstances that warrant a deviation from the general principle
that costs should follow the result.
The complexity of this case
warranted the use of two counsel by both parties.
111.
As indicated earlier in the judgment, the
appellant indicated at the hearing of the appeal that he would be
content to abide by
the revised award, which ought, in the interests
of finality, to be reinstated. That appears to me to be an
appropriate order,
given the long history of the litigation. It is in
the interests of justice for this matter to reach finality.
112.
Accordingly, the following order is
granted:
112.1.
The appeal succeeds with costs, including
the costs of two counsel.
112.2.
The order of the tribunal dismissing the
appellant’s objection to the reduced award rendered by the
respondent on 9 December
2014 is set aside and is replaced with the
following order:
“
The
respondent’s revised award, evidenced by its letter of 30 April
2013, is reinstated with retrospective effect.”
112.3.
The cross-appeal is dismissed with costs,
including the costs of two counsel.
A. MAIER-FRAWLEY
JUDGE OF THE HIGH
COURT,
GAUTENG DIVISION,
JOHANNESBURG
I
agree
N. MANOIM
JUDGE OF THE HIGH
COURT,
GAUTENG DIVISION,
JOHANNESBURG
I
agree
J. ALLEN
ACTING JUDGE OF THE
HIGH COURT,
GAUTENG DIVISION,
JOHANNESBURG
Date of
hearing:
8 May 2024
Judgment
delivered
13
August 2024
This judgment was handed
down electronically by circulation to the parties’
representatives via email, by being uploaded to
CaseLines
and
by release to SAFLII. The date and time for hand-down is deemed to be
10h00 on 13 August 2024.
APPEARANCES:
Counsel
for Appellant:
Adv
R. Pearce SC together with Adv S. Sindikolo
Attorneys
for Appellant:
Richard
Spoor Inc
Counsel
for Respondent:
Adv
G. Hulley SC together with Adv N. Mayet
Attorneys
for Respondent:
Van
Velden-Duffy Inc
[1]
In
a letter dated 22 January 2015, the respondent acknowledged receipt
of the appellant’s email containing his objection
to the
reduced award, but clearly mistakenly referred to the date of such
email as being 11 January 20
14
instead of 11 January 20
15
.
The error is patent in that the deprivation decision resulting in
the reduced reward was made in December 2014 and communicated
to the
appellant on 9 December 2014. Any objection thereto would have
followed thereafter, as indeed happened in
casu
.
[2]
The
original award of 18 August 1997 was based on future probable
earnings of R7, 353.94 and afforded the appellant a modest monthly
pension and constant care allowance under COIDA but no benefit under
the Augmentation Ppolicy, since the future probable earnings
fell
below the threshold of the Augmentation Policy.
[3]
It
was common cause between the parties that the
underlined
amount was incorrectly depicted as
R
163
929.62
instead of
R16
929.62
.
[4]
On
12 July 2013, the relevant adjustment was made pursuant to which the
appellant was paid accordingly.
[5]
It
appears from the record that payslips of Swanepoel were provided for
the period January until December 1996 as well as for
the month of
November 1997.
[6]
JCI
Mining Company (Pty) Ltd.
[7]
Mahlangu
and another v Minister of Labour and others
2021
(2) SA 54 (CC).
[8]
Id
par 20.
[9]
Id
par 49.
[10]
Id
par 52.
Section 27(1)(c) of the
Constitution provides that everyone has the right to have access to
social security
.
Section 27(2) obliges the State to take
reasonable legislative steps to achieve the progressive realisation
of that right.
[11]
Section
39(2) of the Constitution states as follows:
“
When
interpreting any legislation, and when developing the common law or
customary law, every court, tribunal or forum must promote
the
spirit, purport or objects of the Bill of Rights”.
[12]
Investigating
Directorate: Serious Economic Offences v Hyundai Motor Distributors
(Pty) ltd: In re Hyundai Motor Distributors
(Pty) Ltd v Smit
2001(1)
SA 545 (CC) at paras 22-23
[13]
Wary
Holdings (Pty) Ltd v Stalwo (Pty) Ltd and another
[2008] ZACC 12
;
2009
(1) SA 337
(CC) at paras 46, 84 and 107.
[14]
Makate
v Vodacom (Pty) Ltd
2016
(4) SA 121
(CC) at para 89
.
[15]
Department
of Land Affairs and Others v Goedgelegen Tropical Fruits (Pty) Ltd
[2007] ZACC 12
;
2007
(6) SA 199
(CC) at para 53.
In
African
Christian Democratic Party v Electoral Commission
and
Others
[2006] ZACC 1
;
2006
(3) SA 305
(CC) at para 25, the court explained that the question is whether
what was done (in
casu
,
by the tribunal) constituted compliance with the statutory
provisions viewed in the light of their purpose. A narrowly textual
and legalistic approach is to be avoided. See too:
Allpay
Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer of the South African Social Security Agency
and
Others
2014 (1) SA 604
(CC) at par 17.
[16]
Davis
v Workmen’s Compensation Commissioner
1995
(3) SA 689
(C) at 694 F-G
[17]
Natal
Joint Municipal Pension Fund v Endumeni Municipality
2012
(4) SA 593
(SCA) at par 18 (
Endumeni
),
where the following was said:
“
“
Interpretation
is the process of attributing meaning to the words used in a
document, be it legislation, some other statutory
instrument, or
contract,
having regard to the context
provided by reading the particular provision or provisions in the
light of the document as a whole
and the circumstances attendant
upon its coming into existence.
Whatever the nature of the document, consideration must be given to
the language used in the light of the ordinary rules of grammar
and
syntax; the context in which the provision appears; the apparent
purpose to which it is directed and the material known to
those
responsible for its production. Where more than one meaning is
possible each possibility must be weighed in the light of
all these
factors. The process is objective, not subjective. A sensible
meaning is to be preferred to one that leads to insensible
or
unbusinesslike results or undermines the apparent purpose of the
document. Judges must be alert to, and guard against, the
temptation
to substitute what they regard as reasonable, sensible or
businesslike for the words actually used...” (emphasis
added)
In
Phoenix Salt
Industries (Pty) Ltd v The Lubavitch Foundation of Southern Africa
(330/2023)
[2024] ZASCA 107
(03 July 2024), par 24, the Supreme
Court of Appeal recently put it thus:
“
Natal
Joint Municipal Pension Fund v Endumeni Municipality pronounced that
‘proper interpretation of a contract requires
the whole
contract to be read, and grammatical meaning to be attached to the
words used
in consideration of the
surrounding circumstances only known to the parties
.’
This is the law prevailing on interpretation of contracts,
agreements and even legislations.”
(emphasis
added)
[18]
Capitec
Bank Holdings Ltd and Another v Coral Lagoon Investments 194 (Pty)
Ltd and Others
2022
(1) SA 100
(SCA) at paras 25, 26 & 51, where the following was
said:
“
[25]…It
is the language used, understood in the context in which it is used,
and having regard to
the
purpose of the provision that constitutes the unitary exercise of
interpretation. I would only add that the triad of text,
context and
purpose should not be used in a mechanical fashion. It is the
relationship between the words used, the concepts expressed
by those
words and the place of the contested provision within the scheme of
the agreement (or instrument) as a whole that constitutes
the
enterprise by recourse to which a coherent and salient
interpretation is determined. As
Endumeni
emphasised, citing well-known cases, ‘[t]he inevitable point
of departure is the language of the provision itself’.
[26]…
Endumeni
is
not a charter for judicial constructs premised upon what a contract
should be taken to mean from a vantage point that is not
located in
the text
of
what the parties in fact agreed.
Nor
does
Endumeni
licence
judicial interpretation that imports meanings into a contract so as
to make it a better contract, or one that is ethically
preferable
.
[51]...interpretation
begins with the text and its structure. They have gravitational pull
that is important.
The
proposition that context is everything is not a licence to contend
for meanings unmoored in the text and its structure, Rather,
context
and purpose may be used to elucidate the text
.”
.(emphasis
added)
[19]
See:
The
MEC for Education, Western Cape province v Strauss
2008
(2) SA 366
(SCA) at paras 11-12.
[20]
As
the Constitutional Court cautioned in
Kubyana
v Standard Bank of South Africa Ltd
;
2014
(3) SA 56
(CC);
(
Kubyana
)
at para 18: “[L]egislation must be understood holistically
and, it goes without saying, interpreted within the relevant
framework of constitutional rights and norms.
However,
that does not mean that ordinary meaning and clear language may be
discarded,
for
interpretation is not divination
and courts must respect the separation of powers when construing
Acts of Parliament
.”
(emphasis added)
Mhlantla
AJ pointed out in
Kubyana
at
para 18 fn 23, that “ In
S
v Zuma and Others
[1995]
ZACC 1
;
1995
(2) SA 642
(CC);
1995
(4) BCLR 401
(CC)
Kentridge AJ, at paras 17-8, stated:
“
I
am well aware of the fallacy of supposing that general language must
have a single ‘objective’ meaning.
Nor is it easy to
avoid the influence of one’s personal intellectual and moral
preconceptions. But it cannot be too strongly
stressed that the
Constitution does not mean whatever we might wish it to mean
.
We
must heed Lord Wilberforce’s reminder that even a constitution
is a legal instrument, the language of which must be respected.
If the language used by the lawgiver is ignored in favour of a
general resort to ‘values’ the result is not
interpretation
but divination.”
While
these remarks referred to constitutional interpretation, they apply
even more forcefully in relation to statutory interpretation
generally. See also
Investigating
Directorate: Serious Economic Offences and Others v Hyundai Motor
Distributors (Pty) Ltd and Others: In re Hyundai
Motor Distributors
(Pty) Ltd and Others v Smit NO and Others
[2000]
ZACC 12
;
2001
(1) SA 545
(CC);
2000
(10) BCLR 1079
(CC)
at paras 23-4 and 26.”
(emphasis
added)
[21]
The
cautionary remarks of Cameron J
in
NGA v Opperman
2013
(2) SA 1
(CC) at paras 99, 100 & 105 , are apposite in this regard:
“
[99]...
it has to be assumed that the legislature's enacted text includes
only words that matter...
[100]...
if the language used by the lawgiver is ignored in favour of other
pursuits,
the result is not interpretation but divination
.
[105]
.....There is then no particular constitutional imperative to
squeeze a meaning from the provision. Rather, we must accept
the
words of the provision for what they say, even at the cost of
accepting that the provision is ineffectual.
It is better, in my
view, to acknowledge the drafting error, and to leave parliament to
correct it
.” (emphasis added)
[22]
Mahlangu,
(fn
7 above) at par 49.
[23]
The
Cambridge dictionary defines ‘profession’ as ‘any
type of work that requires special training or skill because
it
involves a high level of education’ - (see
https://dictionary.cambridge.org/dictionary/english/profession#google_vignette
)
The
Cambridge dictionary defines ’career ‘
inter
alia
as ‘ the job or jobs you do during your working life
especially where this involves making progress to better jobs
or is
in a particular profession – (see
https://dictionary.cambridge.org/dictionary/english/career
)
A
‘career’
refers
to one’s profession or chosen line of work. It also refers to
the education, training, and experience needed to grow
in one’s
current role or to move on to another one. (see
https://www.thebalancemoney.com/what-is-a-career-525497
)
The
Oxford English dictionary defines ‘vocation’ as a
person’s employment or main occupation or a trade or
profession (see
https://www.google.com/search?q=definition+of+%27vocation%27&sca_esv=1671dfeb145c5278&sca_upv=1&rlz=1C1CHBD_enZA910ZA910&sxsrf=ADLYWIK4jiO6R1d5YsxAyIYJNHD8FNBYFw%3A1722239641164&ei=mUqnZo7iCeq1hbIPs6Ld4A0&ved=0ahUKEwjOkp7Q4suHAxXqWkEAHTNRF9wQ4dUDCBA&uact=5&oq=definition+of+%27vocation%27&gs_lp=Egxnd3Mtd2l6LXNlcnAiGGRlZmluaXRpb24gb2YgJ3ZvY2F0aW9uJzIGEAAYFhgeMgYQABgWGB4yBhAAGBYYHjIGEAAYFhgeMgYQABgWGB4yBhAAGBYYHjIGEAAYFhgeMgYQABgWGB4yBhAAGBYYHjIGEAAYFhgeSJAuUL4OWIEkcAF4AJABAJgBuQKgAb0XqgEGMi0xMC4xuAEDyAEA-AEBmAILoALxFcICChAAGLADGNYEGEfCAg0QABiABBiwAxhDGIoFwgIFEAAYgATCAgYQABgNGB6YAwCIBgGQBgqSBwcxLjAuOS4xoAeHRQ&sclient=gws-wiz-serp
)
[24]
Section
90 provides as follows:
“
90.
Review of decisions by Director-General
(1) The Director-General
may after notice, if possible, to the party concerned and after
giving him an opportunity to submit representations,
at any time
review any decision in connection with a claim for compensation or
the award of compensation on the ground—
(a) that the employee
has not submitted himself to an examination referred to in section
42;
(b) that the disablement
giving rise to the award is prolonged or aggravated by the
unreasonable refusal or failure of the employee
to submit himself to
medical aid;
(c) that compensation
awarded in the form of a periodical payment or a pension is
excessive or insufficient because of existing
or changed
circumstances;
(d) that the decision or
award was based on an incorrect view or misrepresentation of the
facts, or that the decision or award
would have been otherwise in
the light of evidence available at present but which was not
available when the Director-General
made the decision or award.
(2) The Director-General
may, after he has considered the evidence and representations
submitted to him and made such inquiry
as he may deem necessary,
confirm, amend or set aside his decision, and may suspend,
discontinue, reduce or increase compensation
awarded.
(3) For the
purposes of this section compensation shall include medical aid.
[25]
The
ground of review relied upon by the respondent for purposes of the
reduced award.
[26]
Albeit
that it is difficult to understand how the appellant’s s 63
benefits and constant care allowance had been computed
in the
revised award.
[27]
In
terms of section 63(1), the respondent was obliged, in determining
the compensation payable, to calculate the employee’s
earnings
in the manner that it considers best to determine the monthly rate
to which the employee was being remunerated at the
time of the
accident, which remuneration would include the value of any food or
accommodation or both supplied by the employer
at the date of the
accident and any overtime payment or other special remuneration in
cash or in kind of a regular nature or
for work ordinarily employed.
In terms of s63(5), ‘
If
in the opinion of the Director-General it is not practicable to
calculate the earnings of an employee in accordance with the
preceding provisions, the Director-General may calculate those
earnings in such manner as he may deem equitable, but with due
regard to the principles laid down in those provisions
.
’
[28]
Shield
Ins Co Ltd v Van Wyk
1976
(1) SA 770
(NC) at 772E- H, where the following was said:
”
It
is unnecessary to enquire into the status of the Uniform Rules
framed under sec. 43 of the Supreme Court Act in relation to
the Act
itself as regards determination of
dies
induciae
,
since there is for present purposes no conflict between the two.
Sec. 27 of the Act deals only with service outside the area
of
jurisdiction of a Court. Rules 6 (5)
(b)
and 19 and Circuit Rule 6 provide periods differing from those set
out in sec. 27 of the Act, but by employment of the phrase
'subject
to the provisions of sec. 27 of the Act' make it clear that those
differing periods relate only to intra-jurisdictional
service.
Cf.
Rosslee
v.
Rosslee
,
1971
(4) SA 48 (O)
.
Rule
6 (12)
(a)
states that:
'In
urgent applications the Court or a Judge may dispense with the forms
and service provided for
in these Rules
and may dispose
of such matter at such time and place and in such manner and in
accordance with such procedure... as to
it seems meet.'
It
does not purport to give the Court or a Judge any discretion to
dispense with the statutory provisions of the Act.
The
Court
a quo
therefore erred in accepting that it had a
discretion in terms of Rule 6 (12); since the
induciae
to
which the company, in Cape Town, was entitled in terms of sec. 27 of
the Supreme Court Act was 21 days, and Rule 6 (12) only
applies to a
period laid down by the Rules themselves, i.e. in respect of
intra-jurisdictional service. Plaintiff's notice of
motion gave the
company not quite two days' notice instead of 21…”
[29]
In
Minister
of Police v Molokwane
(730/2021)
[2022] ZASCA 111
(15 July 2022),
the
Supreme Court of Appeal explained what had been held in
African
Christian Democratic Party v Electoral Commission
and
Others
[2006] ZACC 1
;
2006
(3) SA 305
(CC) at para 25, as follows:
“
There
it was held that the adoption of the purposive approach in our law
has rendered obsolete all the previous attempts to determine
whether
a statutory provision is directory or peremptory on the basis of the
wording and subject of the text of the provision.
The question was
thus ‘whether what the applicant did constituted compliance
with the statutory provisions viewed in the
light of their purpose’.
A narrowly textual and legalistic approach is to be avoided.”
The
Supreme Court of Appeal pointed out what had been observed in
Ex
Parte Mothuloe (Law Society, Transvaal, Intervening
)
1996 (4) SA 1131
(T) at 1132F, namely, that there was a ‘. .
.trend in interpretation away from the strict legalistic to the
substantive,
and endorsed that which had been said i
n
Nkisimane
and Others v Santam Insurance Co Ltd
1978
(2) SA 430
(A) at 433H-434A about the categorisation of statutory requirements
as ‘peremptory’ or ‘directory’:
‘…
They
are well-known, concise, and convenient labels to use for the
purpose of differentiating between the two categories. But
the
earlier clear-cut distinction between them (the former requiring
exact compliance and the latter merely substantial compliance)
now
seems to have become somewhat blurred. Care must therefore be
exercised not to infer merely from the use of such labels what
degree of compliance is necessary and what the consequences are of
non or defective compliance. These must ultimately depend
upon the
proper construction of the statutory provision in question, or, in
other words, upon the intention of the lawgiver as
ascertained from
the language, scope, and purpose of the enactment as a whole and the
statutory requirement in particular…’.
[30]
Allpay
Consolidated Investment Holdings (Pty) Ltd and Others v Chief
Executive Officer of the South African Social Security Agency
and
Others
2014
(1) SA 604
(CC), par 30.
[31]
Id,
par 16.
[32]
“
Functions
of Director-General
–(1) Subject to the provisions of this Act, the
Director-General shall—
(f)
decide any question relating to –
(i) a right to
compensation;
(ii) the submission,
consideration and adjudication of claims for compensation;
(iii) the calculation of
earnings;
(iv) the degree of
disablement of any employee;
(v) the amount and
manner of payment of compensation;
(vi) the award,
withholding, review, discontinuance, suspension, increase or
reduction of compensation;
(vii) the
liability for payment of compensation as contemplated in section
29;...
(k)
decide upon any other
question falling within his functions in connection with the
administration of this Act.”
[33]
See
AmaBhungane
Centre for Investigative Journalism NPC and Another v Minister of
Justice and Correctional Services and Others; Minister
of Police v
AmaBhungane Centre for Investigative Journalism NPC and Others
2021
(4) BCLR 349
(CC) at paras 63-72, for a discussion of these types of
powers.
[34]
Van
Wyk v Unital Hospital and another (Open Democratic Advice Centre as
Amicus Curiae
[2007] ZACC 24
;
2008
(2) SA 472
(CC)
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