Director-General of the Department of Labour v Jinghua Garments (Pty) Ltd (D730/05) [2006] ZALC 100; (2007) 28 ILJ 880 (LC) (5 December 2006)
The court found that the respondent, Jinghua Garments (Pty) Ltd, is a designated employer as defined by the Employment Equity Act, having employed more than 50 persons. The respondent failed to comply with its statutory obligations under sections 16, 19, 20, 21, 22 and 23 of the Act, which relate to consultation,...
Source-derived case information.
- Citation
- [2006] ZALC 100
- Parties
- Applicant: Director-General of the Department of Labour; Respondent: Jinghua Garments (Pty) Ltd
- Court
- Labour Court
- Jurisdiction
- South Africa
- Case Number
- D730/05
- Procedural Posture
- Compliance Application / First Instance
- Outcome
- The application is granted. The compliance order is made an order of court and a fine is imposed on the respondent.
- Judges
- Sangoni
- Legal Topics
- Employment Equity Act, Affirmative Action, Designated Employer Obligations, Statutory Compliance, Unfair Discrimination
Source-derived case record
Summary, issues, holding and outcome
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Parties
Director-General of the Department of Labour
Applicant
Jinghua Garments (Pty) Ltd
Respondent
Procedural Posture
Compliance Application / First Instance
Legal Issues
- 1 Whether the respondent, as a designated employer, failed to comply with statutory obligations under the Employment Equity Act.
- 2 Whether the compliance order issued by the Department of Labour should be made an order of court.
- 3 Whether a fine should be imposed for contraventions of sections 16, 19, 20, 21, 22 and 23 of the Employment Equity Act.
Ratio Decidendi
The court found that the respondent, Jinghua Garments (Pty) Ltd, is a designated employer as defined by the Employment Equity Act, having employed more than 50 persons. The respondent failed to comply with its statutory obligations under sections 16, 19, 20, 21, 22 and 23 of the Act, which relate to consultation, analysis, preparation and implementation of employment equity plans, and reporting. The compliance order issued by the Department of Labour was valid and enforceable. The court held that the respondent's failure to comply warranted the making of the compliance order as an order of court and the imposition of a substantial fine to ensure future compliance and deterrence.
Court Disposition
The application is granted. The compliance order is made an order of court and a fine is imposed on the respondent.
Orders
- The compliance order issued by Thobekile Sisibo on 31 March 2004 in terms of section 37 of the Employment Equity Act in respect of Jinghua Garments (Pty) Ltd is made an order of the Labour Court.
- A fine of R500,000 is imposed on the respondent for contravening sections 16, 19, 20, 21, 22 and 23 of the Employment Equity Act.
Full Case Text
Judgment text and source record
18 paragraphs
IN THE LABOUR COURT OF SOUTH AFRICA
HELD AT DURBAN
CASE NO : D 730/05
In the matter between:
THE DIRECTOR-GENERAL OF THE
DEPARTMENT OF LABOUR Applicant
and
JINGHUA GARMENTS (PTY) LTD Respondent
J U D G M E N T
___________________________________________________________
SANGONI AJ:
The applicant is the Director General of the Department of Labour who, in terms of the requirements of the Employment Equity Act 55 of 1998 (the Act), plays a key role in the enforcement of that Act. This statute is designed to ensure the promotion of equal opportunity and fair treatment in employment. It is key to the implementation of affirmative action measures by maintaining and enforcing the designated employers to comply with their respective statutory obligations intended for the implementation of employment equity.
The respondent is Jinghua Garments (Pty) Ltd, a company duly registered and incorporated, with limited liability, in accordance with the company laws of the Republic of South Africa. It is a âdesignated employerâ as defined in section 1 of the Act by virtue of having employed persons in excess of 50 at all times material to these proceedings. In fact it had in its employ 280 employees.
In recognition of the disparities in employment consequent upon the application of discriminatory laws on the basis of colour, the Act seeks to eliminate unfair discrimination and to ensure the implementation of employment equity in employment so as to redress the effects of discrimination. To achieve this, the Act prescribes certain obligations to be met by the designated employers. The usual non-compliance with the provisions of the Act is in the area of the application of affirmative action measures. In these proceedings the applicant seeks an appropriate relief in consequence of the respondent having failed to comply with such
statutory obligations.
The order sought by the applicant is in the following terms:
â1. That the compliance order issued by Thobekile Sisibo on 31 March 2004, in terms of s 37 of the Employment Equity Act, No 55 of 1998, in respect of Jinghua Garments (Pty) Ltd (âthe Respondent) is made an order of the Labour Court.
That a fine of R500 000 is imposed on the Respondent for contravening sections 16, 19, 20, 21, 22 and 23 of the Employment Equity Act.