Datt v Gunnebo Industries (Pty) Ltd (JS 355/07) [2009] ZALC 23; [2009] 5 BLLR 449 (LC); (2009) 30 ILJ 2429 (LC) (20 February 2009)

Datt v Gunnebo Industries (Pty) Ltd (JS 355/07) [2009] ZALC 23; [2009] 5 BLLR 449 (LC); (2009) 30 ILJ 2429 (LC) (20 February 2009)

The court found that the letter of 4 June 2004 constituted a binding agreement between the applicant and the respondent, varying the normal retirement age and stipulating that employment would continue until a mutually agreed retirement date. The Managing Director had, at minimum, ostensible authority to enter into this agreement. The respondent's unilateral termination of the applicant's employment based solely on age, without mutual agreement to retire, was not justified under section 187(2)(b) of the LRA. The dismissal was therefore automatically unfair under section 187(1)(f). The applicant was entitled to compensation equivalent to the difference between his previous and new salary...

Citation
[2009] ZALC 23
Parties
Applicant: Mervyn Datt; Respondent: Gunnebo Industries (Pty) Ltd
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
20 February 2009
Case Number
JS 355/07
Procedural Posture
Civil Trial / Judgment
Outcome
The applicant's dismissal was automatically unfair. Compensation awarded for 24 months' salary differential. No order as to costs.
Judges
Steenkamp
Legal Topics
Automatically Unfair Dismissal, Age Discrimination, Retirement Age Variation, Ostensible Authority, Compensation Calculation
Labour Law Automatically Unfair Dismissal Age Discrimination Retirement Age Variation Ostensible Authority Compensation Calculation

Case Brief

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Parties

Mervyn Datt

Applicant

Gunnebo Industries (Pty) Ltd

Respondent

Procedural Posture

Civil Trial / Judgment

Legal Issues

  1. 1 Was the applicant's dismissal based on age automatically unfair under section 187(1)(f) of the Labour Relations Act?
  2. 2 Did the parties mutually agree to vary the normal retirement age, and if so, what was the effect on the employer's right to dismiss based on age?
  3. 3 Did the Managing Director have authority to bind the respondent to the retirement agreement?

Ratio Decidendi

The court found that the letter of 4 June 2004 constituted a binding agreement between the applicant and the respondent, varying the normal retirement age and stipulating that employment would continue until a mutually agreed retirement date. The Managing Director had, at minimum, ostensible authority to enter into this agreement. The respondent's unilateral termination of the applicant's employment based solely on age, without mutual agreement to retire, was not justified under section 187(2)(b) of the LRA. The dismissal was therefore automatically unfair under section 187(1)(f). The applicant was entitled to compensation equivalent to the difference between his previous and new salary...

Court Disposition

The applicant's dismissal was automatically unfair. Compensation awarded for 24 months' salary differential. No order as to costs.

Orders

  • The applicant's dismissal by the respondent based on his age is declared automatically unfair.
  • The respondent is ordered to pay compensation to the applicant in the amount of R243,612.00.