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South Africa Judgment

Labour Court Johannesburg

Dombo v City of Tshwane Metropolitain Municipality (JS628/19) [2020] ZALCJHB 26 (6 February 2020)

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Professional case brief

Research organized from the available case record

Source document

01

Holding and result

The Labour Court does not have jurisdiction under section 77(3) of the BCEA to adjudicate the applicant's claim for progression and/or notch increments for 2011-2014 because the dispute is not causally linked to an individual contract of employment but rather to a collective agreement. The applicant failed to plead reliance on any clause of his employment contract and did not annex the contract to his pleadings. The SALGBC issued a binding ruling that the dispute concerns an unfair labour practice, and the applicant did not pursue review or condonation at the bargaining council. The attempt to bring the matter before the Labour Court constitutes forum shopping and is impermissible. Accordingly, the claim is dismissed for want of jurisdiction.

Court disposition

Claim dismissed for want of jurisdiction.

Orders

  • The applicant’s claim is dismissed for want of jurisdiction.

02

Material facts

Parties

ND Dombo

Applicant Counsel: Geldenhuys CJ @ Law Inc

City of Tshwane Metropolitain Municipality

Respondent Counsel: Geldenhuys Malatji Incorporated

03

Procedural history

  1. Posture

    Civil Jurisdictional Challenge / Judgment on Special Pleas

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant seeks an order compelling the respondent to restore the breach of his terms and conditions of employment and pay progression and/or notch increments for 2011-2014, relying on section 77(3) of the BCEA to found Labour Court jurisdiction. He annexes a collective agreement relating to the Fire Grading System but does not plead reliance on any clause of his individual employment contract.
Respondent
The respondent raises three special pleas: that the matter is res judicata, lis pendens, and constitutes forum shopping. It argues that the Labour Court lacks jurisdiction because the dispute was previously referred to the SALGBC under section 24 of the LRA, which ruled the issue concerns an unfair labour practice, not interpretation of a collective agreement. The applicant did not pursue review or condonation at the bargaining council.

05

Court’s reasoning

  1. 01

    Rand Water v Stoop & Another

    Jurisdiction under section 77(3) of the BCEA requires that the issue in dispute be causally linked, directly or indirectly, to an employment contract.

  2. 02

    National Union of Metalworkers of SA and Others v Micromega (Pty) Ltd (2018) 39 ILJ 2048 (LC)

    The Labour Court has jurisdiction over any claim involving a contract of employment, but the claim must be about or in connection with an employment contract, not merely a collective agreement.

  3. 03

    SALGBC ruling referenced in pleadings

    A binding ruling by the SALGBC that the dispute concerns an unfair labour practice precludes Labour Court jurisdiction under section 77(3) of the BCEA.

06

Ratio, limits and disposition

Ratio decidendi

The Labour Court does not have jurisdiction under section 77(3) of the BCEA to adjudicate the applicant's claim for progression and/or notch increments for 2011-2014 because the dispute is not causally linked to an individual contract of employment but rather to a collective agreement. The applicant failed to plead reliance on any clause of his employment contract and did not annex the contract to his pleadings. The SALGBC issued a binding ruling that the dispute concerns an unfair labour practice, and the applicant did not pursue review or condonation at the bargaining council. The attempt to bring the matter before the Labour Court constitutes forum shopping and is impermissible. Accordingly, the claim is dismissed for want of jurisdiction.

Obiter and limits

  • The Labour Court can ill afford matters that constitute forum shopping clogging up its rolls.
  • It is unnecessary to deal with the further two special pleas raised by the respondent, given the lack of jurisdiction.

Court disposition

Claim dismissed for want of jurisdiction.

  • The applicant’s claim is dismissed for want of jurisdiction.

Source and reliance status

Labour Court Johannesburg

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Judgment reading view

Judgment text

The complete available source text.

Source document

Labour Court Johannesburg

Judgment

[2020] ZALCJHB 26

IN THE LABOUR COURT OF SOUTH AFRICA, JOHANNESBURG

Not Reportable

Case no: JS 628/19

In the matter between:

ND DOMBO Applicant

And

CITY

OF TSHWANE METROPOLITAIN MUNICIPALITY Respondent

Date heard: 25 October 2019

Delivered: 6 February 2020

JUDGMENT

RABKIN-NAICKER, J

[1] This judgment deals with three special pleas raised by the respondent in its statement of response to the applicant’s claim. In its statement of claim the applicant relies on section 77(3) of the Basic Conditions of Employment Act[1] (BCEA) to found jurisdiction of the Labour Court. In the pre-trial minute, the precise relief claimed is recorded by the parties as the following:

“5.1 The Applicant seeks an order compelling the Respondent to restore the breach of his terms and conditions of employment and pay the Applicant his progression and/or notch increments for the period 2011-2014”.

[2] The first special plea as conceived by the respondent is that the matter is res judicata, and/or lis pendens, and/or that the applicant engages in forum shopping. It submits that on these grounds the Labour Court does not have jurisdiction to hear the claim.

[3] The background to the matter is the following:

3.1 On or about 29 October 2018, the applicant referred a dispute in terms of section 24 of the Labour Relations Act[2](LRA) to the SALGBC in which he sought payment of notch increments for the periods 2011-2014.

3.2 A ruling was issued to the effect that the dispute did not pertain to the interpretation of a collective agreement but to an unfair labour practice dispute and that the applicant would have to apply for condonation to the bargaining council for the late referral of the latter.

3.3 The applicant did not file a review of the ruling and did not apply for condonation for the late filing of an unfair labour practice dispute.

[4] The respondent has argued this first plea on jurisdiction relying on the basis set out in paragraph 2 above. However, this Court may mero motu consider whether it has jurisdiction and is not bound to the submissions contended on behalf of the applicant.

[5] As I have set out in a judgment in a similar matter[3], this type of dispute cannot be characterized as one falling under section 77(3) of the BCEA. In the matter of National Union of Metalworkers of SA and Others v Micromega (Pty) Ltd[4] LeGrange, J considered the Labour Appeal Court (LAC) authority on the interpretation of section 77(3):

“[15] The leading case on interpreting what is meant by the phrase ‘a matter concerning a contract of employment’ in s 77(3) of the BCEA is Rand Water v Stoop & Another. In that case, the LAC found that an employer’s counterclaim for fraud arising from an alleged breach of an employee’s contractual obligation to act in good faith could be entertained simultaneously with a claim for unfair dismissal. Importantly, the LAC held that in that case, the appellant employer’s ‘counterclaims are pleaded as arising out of and related to the contract of employment that existed between the appellant and the respondents’. The LAC, amongst other findings stated:

‘[21] Generally the Labour Court and this court have held that if an issue in dispute relates to; is linked to; or connected with an employment contract then the Labour Court does have jurisdiction in terms of s 77(3) of the BCEA to entertain such a dispute. …

[30] … The word “concerning” while conveying a cause and effect does not convey a meaning that some causes and effects are acceptable and others not or that there has to be a direct or indirect link between the contract of employment and the claim.’

The court also held (at para 39) that:

‘I am satisfied that s 77(3) read with s 77A(e) favours an interpretation bringing within its ambit the type of claim instituted

by the appellant in this matter as:

39.1 The word “concurrent” in s 77(3) places the Labour Court in exactly the same position as the High Court with the same powers and authority in relation to matters concerning a contract of employment.

39.2 The last part of s 77(3) provides the Labour Court with jurisdiction irrespective of whether any basic condition of employment constitutes a term of the employment contract. This demonstrates that the Labour Court has jurisdiction over any claim as long as it involves a contract of employment.

39.3 The words “concerning a contract of employment” mean about or in connection with an employment contract. The pleaded claim clearly falls within this categorization.

39.4 The words “any matter” in s 77(3) are broad and the literal interpretation does not limit the claims, in relation to a contract of employment, to a specific category. Damages, both liquid and illiquid, are included.’

[6] In addition to considering the above, the following dictum in the Micromega[5] judgment is relevant:

“[17] What is important to notice in all of the above is that the issue in dispute must in some way be linked causally, whether directly or indirectly, to an employment contract….”

[7] In this matter, the applicant has not pleaded reliance on any clauses of his individual employment contract. Nor is his employment contract annexed to the pleadings. What he does annex to his statement of case is a Collective Agreement dealing with the Fire Grading System for Fire Safety Employees in the Community Safety Department of the respondent.

[8] This matter is not linked causally directly or indirectly to an employment contract for the purposes of section 77(3) of the BCEA. As is common cause, a binding ruling by the SALGBC has found that the issue in dispute concerns an unfair labour practice. It appears that rather than risking the refusal by the Council to grant condonation, the applicant has gone for a third option. Unfortunately for him, this Court does not have jurisdiction to adjudicate the claim. The applicant is forum shopping (although this is not a ‘special plea’) and given its caseload, the Labour Court can ill afford this type of matter clogging up its rolls.

[9] It is not necessary for me to deal with the further two special pleas raised by the respondent. I make the following order.

Order

1. The applicant’s claim is dismissed for want of jurisdiction.

_____

H. Rabkin-Naicker

Judge of the Labour Court of South Africa

Appearances:

Applicant: Geldenhuys CJ @ Law Inc

Respondent: Geldenhuys Malatji Incorporated

[1] Act 75 of 1997.

[2] Act 66 of 1995 as amended.

[3] See judgment in matter J1028/14 IMATU obo JL Fourie and Others v City of Tshwane Metropolitan Municipality and Others handed down on …. 2020

[4] (2018) 39 ILJ 2048 (LC).

[5] Supra n 4.

Source wording is retained. Consult the source document for its original formatting and pagination.

Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Rand Water v Stoop & Another

Case cited

National Union of Metalworkers of SA and Others v Micromega (Pty) Ltd (2018) 39 ILJ 2048 (LC)

Case cited

IMATU obo JL Fourie and Others v City of Tshwane Metropolitan Municipality and Others J1028/14

Case cited

Basic Conditions of Employment Act 75 of 1997

Legislation

Legislation referenced in the available case record.

Labour Relations Act 66 of 1995 as amended

Legislation

Legislation referenced in the available case record.

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