Centlec (SOC) Ltd v Masepole and Others (A52/2022) [2023] ZAFSHC 73 (16 March 2023)

Centlec (SOC) Ltd v Masepole and Others (A52/2022) [2023] ZAFSHC 73 (16 March 2023)

The court found that the promotions and resulting employment contracts were concluded under a common mistake, as both Centlec and the respondents believed the incorrect Rapid Progression Policy was authentic. The correct policy required an appropriate B.Degree, which most respondents did not possess. The use of the correct policy was a tacit condition for the validity of the promotions. Centlec was entitled to treat the contracts as void and reverse the promotions without the respondents' consent. The correction, though amounting to a demotion, was lawful and did not require employee consent. The respondents' claim for breach of contract failed, and the application was dismissed.

Citation
[2023] ZAFSHC 73
Parties
Appellant: Centlec (SOC) Ltd; Respondent: Lehlohonolo D. Masepole; Respondent: Kabelo Mphirime; Respondent: Mookho M. Molehe; Respondent: Tsholofelo Mathe
Court
Free State High Court, Bloemfontein
Jurisdiction
South Africa
Judgment Date
16 March 2023
Case Number
A52/2022
Procedural Posture
Civil Appeal / Appeal From Single Judge to Full Bench
Outcome
Appeal upheld; application dismissed; no order as to costs.
Judges
C.J. Musi, P.J. Loubser, M.E. Mahlangu
Legal Topics
Common Mistake, Employment Contract, Unilateral Demotion, Rapid Progression Policy, Unfair Labour Practice
Labour Law Civil Procedure Common Mistake Employment Contract Unilateral Demotion Rapid Progression Policy Unfair Labour Practice

Case Brief

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Parties

Centlec (SOC) Ltd

Appellant

Lehlohonolo D. Masepole

Respondent

Kabelo Mphirime

Respondent

Mookho M. Molehe

Respondent

Tsholofelo Mathe

Respondent

Procedural Posture

Civil Appeal / Appeal From Single Judge to Full Bench

Legal Issues

  1. 1 Whether the employment contracts resulting from the respondents' promotions were valid given the use of an incorrect policy document.
  2. 2 Whether Centlec lawfully reversed the respondents' promotions and demoted them without their consent.
  3. 3 Whether the dispute should have been referred under the Labour Relations Act as an unfair labour practice.

Ratio Decidendi

The court found that the promotions and resulting employment contracts were concluded under a common mistake, as both Centlec and the respondents believed the incorrect Rapid Progression Policy was authentic. The correct policy required an appropriate B.Degree, which most respondents did not possess. The use of the correct policy was a tacit condition for the validity of the promotions. Centlec was entitled to treat the contracts as void and reverse the promotions without the respondents' consent. The correction, though amounting to a demotion, was lawful and did not require employee consent. The respondents' claim for breach of contract failed, and the application was dismissed.

Court Disposition

Appeal upheld; application dismissed; no order as to costs.

Orders

  • The appeal is upheld with no order as to costs.
  • The order of the court a quo is set aside and replaced with: The application is dismissed.