Almazest (Pty) Ltd v Alexander and Others (P03/2013) [2015] ZALCPE 33 (14 May 2015)

Almazest (Pty) Ltd v Alexander and Others (P03/2013) [2015] ZALCPE 33 (14 May 2015)

The court held that the arbitrator's decision to award severance pay to the third respondent was justified. The offer of alternative employment involved a substantial reduction in both salary (approximately 45%) and status, which the arbitrator reasonably found to be unreasonable for the purposes of section 41(2) of the BCEA. The applicant was not prejudiced by the failure to join the previous employer, Metcash, as joint and several liability allowed the third respondent to elect against whom to proceed. The arbitrator's failure to suggest joinder did not constitute a reviewable irregularity affecting the outcome. The review application was dismissed as the arbitrator's reasoning was not...

Citation
[2015] ZALCPE 33
Parties
Applicant: Almazest (Pty) Ltd; Respondent: Ralph Alexander; Respondent: The Commission for Conciliation, Mediation and Arbitration; Respondent: Barend J Mellet
Court
Labour Court Port Elizabeth
Jurisdiction
South Africa
Judgment Date
14 May 2015
Case Number
P03/2013
Procedural Posture
Review Application / Judgment on Review of Arbitration Award
Outcome
Application dismissed with costs.
Judges
Lagrange
Legal Topics
Severance Pay, Section 197 Transfer, Alternative Employment Offer, Arbitration Review, Basic Conditions of Employment Act
Labour Law Civil Procedure Severance Pay Section 197 Transfer Alternative Employment Offer Arbitration Review Basic Conditions of Employment Act

Case Brief

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Parties

Almazest (Pty) Ltd

Applicant

Ralph Alexander

Respondent

The Commission for Conciliation, Mediation and Arbitration

Respondent

Barend J Mellet

Respondent

Procedural Posture

Review Application / Judgment on Review of Arbitration Award

Legal Issues

  1. 1 Whether the third respondent was entitled to severance pay after refusing an offer of alternative employment at a significantly reduced salary and status.
  2. 2 Whether the arbitrator committed a reviewable irregularity by failing to suggest joinder of the previous employer following a section 197 transfer.
  3. 3 Whether the arbitrator's reasoning regarding the reasonableness of the alternative employment offer was correct.

Ratio Decidendi

The court held that the arbitrator's decision to award severance pay to the third respondent was justified. The offer of alternative employment involved a substantial reduction in both salary (approximately 45%) and status, which the arbitrator reasonably found to be unreasonable for the purposes of section 41(2) of the BCEA. The applicant was not prejudiced by the failure to join the previous employer, Metcash, as joint and several liability allowed the third respondent to elect against whom to proceed. The arbitrator's failure to suggest joinder did not constitute a reviewable irregularity affecting the outcome. The review application was dismissed as the arbitrator's reasoning was not...

Court Disposition

Application dismissed with costs.

Orders

  • The review application is dismissed with costs.