Edgars Consolidated Ltd v Clarke and Others (JR1155/2005) [2007] ZALC 51 (6 August 2007)

Edgars Consolidated Ltd v Clarke and Others (JR1155/2005) [2007] ZALC 51 (6 August 2007)

The court found that two issues warranted consideration by another court: (1) whether the determination of an appropriate sanction is solely the employer's prerogative and whether the 'reasonable employer test' applies, and (2) whether section 194 of the LRA limits the amount payable for retrospective reinstatement to 12 months remuneration. The court held that the 'reasonable employer test' does not form part of South African law, but acknowledged that higher courts may reach a different conclusion, especially as the issue was pending before the Constitutional Court. Regarding section 194, the court interpreted it as limiting only compensation under section 193(1)(c), not back-pay...

Citation
[2007] ZALC 51
Parties
Applicant: Edgars Consolidated Ltd; Respondent: Clarke, Lisa; Respondent: Mudau, Robert N.O; Respondent: Commission for Conciliation, Mediation and Arbitration
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
6 August 2007
Case Number
JR1155/2005
Procedural Posture
Leave to Appeal / Application for Leave to Appeal Against Judgment
Outcome
Leave to appeal granted on the issues of the reasonable employer test and the limitation of retrospective reinstatement under section 194 of the LRA.
Judges
Ngalwana
Legal Topics
Unfair Dismissal, Reasonable Employer Test, Retrospective Reinstatement, Compensation Limit, Section 193 Lra, Section 194 Lra
Labour Law Civil Procedure Unfair Dismissal Reasonable Employer Test Retrospective Reinstatement Compensation Limit Section 193 Lra Section 194 Lra

Case Brief

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Parties

Edgars Consolidated Ltd

Applicant

Clarke, Lisa

Respondent

Mudau, Robert N.O

Respondent

Commission for Conciliation, Mediation and Arbitration

Respondent

Procedural Posture

Leave to Appeal / Application for Leave to Appeal Against Judgment

Legal Issues

  1. 1 Whether the determination of an appropriate sanction is the sole preserve of the employer.
  2. 2 Whether the 'reasonable employer test' forms part of South African labour law.
  3. 3 Whether section 194 of the LRA limits the amount payable pursuant to retrospective reinstatement to 12 months remuneration.

Ratio Decidendi

The court found that two issues warranted consideration by another court: (1) whether the determination of an appropriate sanction is solely the employer's prerogative and whether the 'reasonable employer test' applies, and (2) whether section 194 of the LRA limits the amount payable for retrospective reinstatement to 12 months remuneration. The court held that the 'reasonable employer test' does not form part of South African law, but acknowledged that higher courts may reach a different conclusion, especially as the issue was pending before the Constitutional Court. Regarding section 194, the court interpreted it as limiting only compensation under section 193(1)(c), not back-pay...

Court Disposition

Leave to appeal granted on the issues of the reasonable employer test and the limitation of retrospective reinstatement under section 194 of the LRA.

Orders

  • Leave to appeal is granted to the Labour Appeal Court on the issues identified in paragraphs 3 and 4 of this judgment.