Public Newsletter
Worklaw is a subscription based labour law service developed by leading South African labour lawyers and arbitrators. Worklaw gives you all you need to manage labour law at the workplace. Go to www.worklaw.co.za
Worklaw subscribers receive a monthly newsletter containing commentary on the latest labour law cases and trends. This newsletter contains an article, 'Update on dismissal law', where we highlight 5 recent (mostly LAC) judgments dealing with different aspects of dismissal law. We also discuss three other new cases: The first case, a Constitutional Court decision, clarifies when the High Court has jurisdiction in labour disputes. The second case considers when a court can lift the 'corporate veil' to discover who the true employer is. The third case confirms the relationship between the Prescription Act and the LRA.
This public newsletter is a free edited version of the subscriber newsletter.
RECENT CASES
Which court? Labour Court or High Court?
In Baloyi v Public Protector & others (2021) 42 ILJ 961 (CC) the Constitutional Court pointed out that s 157(1) of the LRA did not afford the Labour Court general jurisdiction in labour matters, and that the High Court's jurisdiction was not ousted by the section just because a dispute fell within the overall sphere of employment relations. Both s 157(2) of the LRA and s 77(3) of the BCEA conferred concurrent jurisdiction on the Labour Court and the High Court in certain circumstances. This afforded a litigant an additional right to approach either court where a dispute fell within the ambit of those sections.
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Lifting the corporate veil
The 'corporate veil' is the legal screen between a company (recognised as a legal person separate from its shareholders) and the shareholders. Piercing the corporate veil or lifting the corporate veil is a legal decision to treat the rights or duties of a company as the rights or liabilities of its shareholders.
In Wilson v Prinsloo; In re: Prinsloo v Expidor 163 CC t/a The League of Gentleman and Another (CA12/19) [2021] ZALAC 10 (31 May 2021) the essence of the appeal was whether it was appropriate, on the facts before the court, to lift the corporate veil.
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Is the Prescription Act inconsistent with the LRA?
In National Union of Mineworkers on behalf of Majebe v Civil & General Contractors CC (2021) 42 ILJ 1027 (LAC) the court considered the various conflicting LAC and Constitutional Court judgments on the issue and confirmed that the Constitutional Court's decision in Food & Allied Workers Union on behalf of Gaoshubelwe v Pieman's Pantry (Pty) Ltd (Case No CCT 236/16, 20 March 2018) had since clarified the position that the Prescription Act is not inconsistent with the provisions of the LRA and that claims under the LRA do prescribe.
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ARTICLE: Update on dismissal law
By Prof Alan Rycroft
There have been several significant judgments in the last few months, largely from the LAC, on different aspects of dismissal law. Instead of the usual article on a single theme, Alan Rycroft in this article highlights a variety of issues affecting the law on dismissal, including the following:- The LAC judgment in Baxter v Minster of Justice and Correctional Services and Others (D1171/2014) [2018] ZALCD 11 (1 August 2018) about whether the Protected Disclosures Act requires a disclosure to an employer to be made in good faith;
- The LC judgment in Centre for Autism Research & Education CC v Commission for Conciliation, Mediation & Arbitration & others (2020) 41 ILJ 2623 (LC) about whether the failure to lodge a grievance prior to resignation and the willingness to work during the notice period, should negate a constructive dismissal claim;
- The LAC judgment in Koko v Greater Tubatse Municipality & others (2021) 42 ILJ 1019 (LAC) dealing with the impact of extensive delays on whether an employee who has been unfairly dismissed should be awarded retrospective reinstatement;
- The LAC judgment in Standard Bank of SA Ltd v Leslie & others (2021) 42 ILJ 1080 (LAC) about whether an unfairly dismissed employee should be granted reinstatement when his conduct made a continued employment relationship intolerable;
- The LAC judgment in Kimberley Ekapa Mining Joint Venture v National Union of Mineworkers (2021) 42 ILJ 761 (LAC) confirming that consultation envisaged by s 189(2) of the LRA involves a bilateral process. Where a union frustrates consultation, an employer does not act unfairly by continuing to retrench.
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Bruce Robertson
June 2021
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