Commission for Conciliation, Mediation and Arbitration v Commission Staff Association and Another (JA110/2018) [2019] ZALAC 69; [2020] 1 BLLR 9 (LAC); (2020) 41 ILJ 145 (LAC) (16 October 2019)

Commission for Conciliation, Mediation and Arbitration v Commission Staff Association and Another (JA110/2018) [2019] ZALAC 69; [2020] 1 BLLR 9 (LAC); (2020) 41 ILJ 145 (LAC) (16 October 2019)

The court held that section 198B(3), (4), and (5) of the Labour Relations Act do not apply retrospectively to fixed-term contracts concluded or renewed before 1 January 2015. The language of these subsections, including the use of present tense verbs and references to the conclusion or renewal of contracts,...

Source-derived case information.

Citation
[2019] ZALAC 69
Parties
Appellant: Commission for Conciliation, Mediation and Arbitration; Respondent: Commission Staff Association; Respondent: M.P. Shai N.O.
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
16 October 2019
Case Number
JA110/2018
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment Reviewing and Setting Aside Arbitration Award
Outcome
Appeal upheld; Labour Court order set aside and replaced with dismissal of the application.
Judges
Davis, Coppin, Murphy
Legal Topics
Fixed Term Contracts, Retrospective Application, Labour Relations Act, Employment Status, Statutory Interpretation
Labour Law Fixed Term Contracts Retrospective Application Labour Relations Act Employment Status Statutory Interpretation

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Summary, issues, holding and outcome

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Parties

Commission for Conciliation, Mediation and Arbitration

Appellant

Commission Staff Association

Respondent

M.P. Shai N.O.

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment Reviewing and Setting Aside Arbitration Award

  1. 1 Does section 198B(3), (4) and (5) of the Labour Relations Act apply retrospectively to fixed-term employment contracts concluded or renewed before 1 January 2015?
  2. 2 Are employers and employees obliged to regularise historical contracts to comply with section 198B(3) and (4)?
  3. 3 Can employees claim backpay relying on historical fixed-term contracts under section 198B?

Ratio Decidendi

The court held that section 198B(3), (4), and (5) of the Labour Relations Act do not apply retrospectively to fixed-term contracts concluded or renewed before 1 January 2015. The language of these subsections, including the use of present tense verbs and references to the conclusion or renewal of contracts, indicates that they regulate future conduct only. The absence of express retrospective language, as found in subsections 198B(8) and (10), further supports this interpretation. The court found that imposing permanent employment obligations on employers for historical contracts would be manifestly unfair and contrary to the principle of legality. The commissioner’s award, which found no...

Court Disposition

Appeal upheld; Labour Court order set aside and replaced with dismissal of the application.

Orders

  • The appeal is upheld.
  • The order of the Labour Court is set aside and replaced with: 'The application is dismissed.'