Maletsie Makoanyane v Lesotho Flour Mills and Others (LAC/REV 6 of 13) [2013] LSLAC 11 (7 November 2013)

Maletsie Makoanyane v Lesotho Flour Mills and Others (LAC/REV 6 of 13) [2013] LSLAC 11 (7 November 2013)

Where the employer operates a separation benefit scheme that provides more advantageous benefits than statutory severance pay, exemption from severance pay is valid even if no hearing is afforded, unless the employee is prejudiced. The applicants failed to show prejudice or that the exemption was unjustified. The counter-application to nullify the provident fund agreement failed for non-joinder of the fund administrator.

Citation
[2013] LSLAC 11
Parties
Applicant: ‘Maletsie Makoanyane; Applicant: ‘Makhothatso Lipoli; Respondent: Lesotho Flour Mills Ltd; Respondent: Labour Commissioner
Court
Labour Appeal Court
Jurisdiction
Lesotho
Judgment Date
7 November 2013
Case Number
LAC/REV 6 of 13
Procedural Posture
Labour Review and Counter Application / Judgment After Hearing on Merits and Counter Application
Outcome
Both the main application and the counter-application are dismissed with costs.
Legal Topics
Severance Pay, Exemption From Statutory Benefits, Provident Fund Agreements, Natural Justice, Review of Administrative Action
Source Language
English
Labour Law Severance Pay Exemption From Statutory Benefits Provident Fund Agreements Natural Justice Review of Administrative Action

Case Brief

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Parties

‘Maletsie Makoanyane

Applicant

‘Makhothatso Lipoli

Applicant

Lesotho Flour Mills Ltd

Respondent

Labour Commissioner

Respondent

Procedural Posture

Labour Review and Counter Application / Judgment After Hearing on Merits and Counter Application

Legal Issues

  1. 1 Whether exemption from severance pay granted without a hearing is invalid
  2. 2 Whether the provident fund scheme provided more advantageous benefits than severance pay
  3. 3 Whether the provident fund agreement should be nullified for lack of consensus and non-joinder

Ratio Decidendi

Where the employer operates a separation benefit scheme that provides more advantageous benefits than statutory severance pay, exemption from severance pay is valid even if no hearing is afforded, unless the employee is prejudiced. The applicants failed to show prejudice or that the exemption was unjustified. The counter-application to nullify the provident fund agreement failed for non-joinder of the fund administrator.

Court Disposition

Both the main application and the counter-application are dismissed with costs.

Orders

  • The counter application is dismissed with costs.
  • The main application is dismissed with costs.