Dimension Data (PTY) Ltd and Others v GWB Technologies CC and Others (J 478/2022) [2022] ZALCJHB 97; (2022) 43 ILJ 1824 (LC) (9 May 2022)

Dimension Data (PTY) Ltd and Others v GWB Technologies CC and Others (J 478/2022) [2022] ZALCJHB 97; (2022) 43 ILJ 1824 (LC) (9 May 2022)

The Court found that the provision of end-user computing services to the City constituted a discrete, organised economic entity capable of being transferred. The termination of the applicants’ service agreement and the simultaneous appointment of GWB to provide the same services, using the same infrastructure, assets, and institutional knowledge, triggered section 197 of the Labour Relations Act. The Court distinguished the present facts from cases where only maintenance services were provided, noting that the EUC services involved a dedicated team, continuity of service, and the transfer of access to the City’s IT infrastructure. The factual matrix demonstrated that the business bundle,...

Citation
[2022] ZALCJHB 97
Parties
Applicant: Dimension Data (PTY) Ltd; Applicant: Vanity Consulting (PTY) Ltd; Applicant: Yaetsho Solutions (PTY) Ltd; Respondent: GWB Technologies CC t/a GWB Technologies; Respondent: City of Johannesburg Metropolitan Municipality; Respondent: Employees of Dimension Data (PTY) Ltd listed in Annexure ‘A’; Respondent: Employees of Vanity Consulting (PTY) Ltd listed in Annexure ‘B’; Respondent: Employees of Yaetsho Solutions (PTY) Ltd listed in Annexure ‘C’
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
9 May 2022
Case Number
J 478/2022
Procedural Posture
Urgent Application / First Instance Judgment
Outcome
Application granted. Declaratory relief issued confirming section 197 transfer. Costs awarded to applicants.
Judges
Van Niekerk
Legal Topics
Section 197 Transfer, Change of Service Provider, Employment Continuity, Outsourcing, Declaratory Relief
Labour Law Civil Procedure Section 197 Transfer Change of Service Provider Employment Continuity Outsourcing Declaratory Relief

Case Brief

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Parties

Dimension Data (PTY) Ltd

Applicant

Vanity Consulting (PTY) Ltd

Applicant

Yaetsho Solutions (PTY) Ltd

Applicant

GWB Technologies CC t/a GWB Technologies

Respondent

City of Johannesburg Metropolitan Municipality

Respondent

Employees of Dimension Data (PTY) Ltd listed in Annexure ‘A’

Respondent

Employees of Vanity Consulting (PTY) Ltd listed in Annexure ‘B’

Respondent

Employees of Yaetsho Solutions (PTY) Ltd listed in Annexure ‘C’

Respondent

Procedural Posture

Urgent Application / First Instance Judgment

Legal Issues

  1. 1 Whether the termination of the service agreement and award of a tender to a new provider constitutes a transfer of a business as contemplated by section 197 of the Labour Relations Act.
  2. 2 Whether the employees engaged in providing end-user computing services are entitled to continuity of employment under section 197.
  3. 3 Whether the change in service provider triggers the automatic transfer of employment contracts to the new provider.

Ratio Decidendi

The Court found that the provision of end-user computing services to the City constituted a discrete, organised economic entity capable of being transferred. The termination of the applicants’ service agreement and the simultaneous appointment of GWB to provide the same services, using the same infrastructure, assets, and institutional knowledge, triggered section 197 of the Labour Relations Act. The Court distinguished the present facts from cases where only maintenance services were provided, noting that the EUC services involved a dedicated team, continuity of service, and the transfer of access to the City’s IT infrastructure. The factual matrix demonstrated that the business bundle,...

Court Disposition

Application granted. Declaratory relief issued confirming section 197 transfer. Costs awarded to applicants.

Orders

  • The application is enrolled as urgent and non-compliance with rules is condoned.
  • It is declared that the termination of the agreement and award of the tender to the first respondent constitutes the transfer of a business as contemplated by section 197 of the Labour Relations Act, 66 of 1995.