FAWU and Others v Cape Hospitality Services t/a Savoy Hotel (C540/08) [2014] ZALCCT 5; (2014) 35 ILJ 3394 (LC) (24 February 2014)

FAWU and Others v Cape Hospitality Services t/a Savoy Hotel (C540/08) [2014] ZALCCT 5; (2014) 35 ILJ 3394 (LC) (24 February 2014)

The court found that the settlement reached between the parties in 2011 related only to the payment of backpay and costs under the writ of execution, not to the applicants' right to reinstatement as ordered in the arbitration award. The applicants' attorney's correspondence and affidavit made it clear that the right to reinstatement was not compromised or abandoned. The respondent did not provide evidence to the contrary. The court's discretion under section 158(1)(c) of the LRA is limited to making the award an order of court or not; it cannot vary the award or refuse relief based on delay or other considerations. The applicants are entitled to have the arbitration award made an order of...

Citation
[2014] ZALCCT 5
Parties
Applicant: FAWU; Applicant: Veronica Claasen; Applicant: Beronice Sethlow; Applicant: Apathea Phatlanyane; Applicant: Rosy Tshenyego; Respondent: Cape Hospitality Services t/a Savoy Hotel
Court
Labour Court Cape Town
Jurisdiction
South Africa
Judgment Date
24 February 2014
Case Number
C540/08
Procedural Posture
Application to Make Arbitration Award Order of Court / Opposed Motion After Rescission of Unopposed Order
Outcome
Application granted; arbitration award made order of court with conditions.
Judges
Steenkamp
Legal Topics
Arbitration Award Enforcement, Reinstatement, Compromise and Settlement, Backpay, Lra Section 158, Costs Award
Labour Law Arbitration Award Enforcement Reinstatement Compromise and Settlement Backpay Lra Section 158 Costs Award

Case Brief

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Parties

FAWU

Applicant

Veronica Claasen

Applicant

Beronice Sethlow

Applicant

Apathea Phatlanyane

Applicant

Rosy Tshenyego

Applicant

Cape Hospitality Services t/a Savoy Hotel

Respondent

Procedural Posture

Application to Make Arbitration Award Order of Court / Opposed Motion After Rescission of Unopposed Order

Legal Issues

  1. 1 Whether the arbitration award reinstating the applicants should be made an order of court under section 158(1)(c) of the LRA.
  2. 2 Whether the settlement of the writ of execution extinguished the applicants' right to reinstatement.
  3. 3 Whether the applicants are entitled to retrospective reinstatement and backpay beyond the period already paid.

Ratio Decidendi

The court found that the settlement reached between the parties in 2011 related only to the payment of backpay and costs under the writ of execution, not to the applicants' right to reinstatement as ordered in the arbitration award. The applicants' attorney's correspondence and affidavit made it clear that the right to reinstatement was not compromised or abandoned. The respondent did not provide evidence to the contrary. The court's discretion under section 158(1)(c) of the LRA is limited to making the award an order of court or not; it cannot vary the award or refuse relief based on delay or other considerations. The applicants are entitled to have the arbitration award made an order of...

Court Disposition

Application granted; arbitration award made order of court with conditions.

Orders

  • The arbitration award under case number NV 458-08 is made an order of court.
  • The individual applicants must report for duty on or before 1 April 2014, failing which they will be deemed to have abandoned their right to the relief awarded in the arbitration award.