Dinah Ramona v Econet Telecom Lesotho (Pty) Ltd (LAC/CIV/REV 4 of 2013) [2014] LSLAC 7 (5 February 2014)

Dinah Ramona v Econet Telecom Lesotho (Pty) Ltd (LAC/CIV/REV 4 of 2013) [2014] LSLAC 7 (5 February 2014)

The employer had no legal authority to deduct its contribution to the provident fund from the applicant's severance pay, as neither the Labour Code nor the exemption certificate provided for such deduction. Where severance pay is more advantageous than the alternative benefit, the exemption does not apply and full severance pay is due. Deductions not authorised by law are prohibited.

Citation
[2014] LSLAC 7
Parties
Applicant: Dinah Ramona; Respondent: Econet Telecom Lesotho (Pty) Ltd
Court
Labour Appeal Court
Jurisdiction
Lesotho
Judgment Date
5 February 2014
Case Number
LAC/CIV/REV 4 of 2013
Procedural Posture
Labour Review / Appeal Judgment
Outcome
Application for review allowed; Labour Court decision set aside; DDPR award reinstated.
Legal Topics
Severance Pay, Pension/provident Fund Benefits, Statutory Interpretation, Exemption From Severance Pay, Unlawful Deductions
Source Language
English
Labour Law Severance Pay Pension/provident Fund Benefits Statutory Interpretation Exemption From Severance Pay Unlawful Deductions

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Parties

Dinah Ramona

Applicant

Econet Telecom Lesotho (Pty) Ltd

Respondent

Procedural Posture

Labour Review / Appeal Judgment

Legal Issues

  1. 1 Whether the employer was entitled to deduct its pension/provident fund contribution from the applicant's severance pay
  2. 2 Whether the Labour Court erred in law in ordering the deduction of M87,244.00 from the applicant's severance pay

Ratio Decidendi

The employer had no legal authority to deduct its contribution to the provident fund from the applicant's severance pay, as neither the Labour Code nor the exemption certificate provided for such deduction. Where severance pay is more advantageous than the alternative benefit, the exemption does not apply and full severance pay is due. Deductions not authorised by law are prohibited.

Court Disposition

Application for review allowed; Labour Court decision set aside; DDPR award reinstated.

Orders

  • The decision of the Deputy President of the Labour Court under case No.: LC/REV/69/10 is reviewed, corrected and set aside.
  • The award of the DDPR is reinstated and confirmed; the remaining amount of severance pay amounting to M87,244.00 is to be paid to the applicant by the respondent.