Gama v Transnet SOC Limited and Others (J3701/18) [2018] ZALCJHB 348 (19 October 2018)

Gama v Transnet SOC Limited and Others (J3701/18) [2018] ZALCJHB 348 (19 October 2018)

The court found that the applicant's employment contract expressly incorporated the respondent's Disciplinary Code and Procedure. However, the contract also contained an arbitration clause requiring disputes regarding breach or termination to be referred to arbitration before seeking final relief from the court. The court held that its jurisdiction was not ousted, but it was obliged to direct the parties to comply with the agreed arbitration process first. No special circumstances were presented to justify bypassing arbitration. Accordingly, the application was stayed pending the outcome of arbitration, and no final interdict was granted. Each party was ordered to pay its own costs,...

Citation
[2018] ZALCJHB 348
Parties
Applicant: Siyabonga Gama; Respondent: Transnet SOC Limited and Thirteen Others
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
19 October 2018
Case Number
J3701/18
Procedural Posture
Urgent Application / Application for Declaratory and Interdictory Relief; Opposed Motion Heard on Urgent Basis
Outcome
Application stayed pending arbitration; declaratory relief granted regarding incorporation of disciplinary code; no final interdict issued; each party to pay its own costs.
Judges
GN Moshoana
Legal Topics
Employment Contract, Disciplinary Code, Arbitration Clause, Urgent Interdict, Stay of Proceedings

Case Brief

Summary, issues, holding and outcome

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Parties

Siyabonga Gama

Applicant

Transnet SOC Limited and Thirteen Others

Respondent

Procedural Posture

Urgent Application / Application for Declaratory and Interdictory Relief; Opposed Motion Heard on Urgent Basis

  1. 1 Whether the applicant's contract of employment incorporates the respondent's Disciplinary Code and Procedure.
  2. 2 Whether the Labour Court should grant a final interdict or declaratory relief in light of the arbitration clause.
  3. 3 Whether the application should be stayed pending arbitration.

Ratio Decidendi

The court found that the applicant's employment contract expressly incorporated the respondent's Disciplinary Code and Procedure. However, the contract also contained an arbitration clause requiring disputes regarding breach or termination to be referred to arbitration before seeking final relief from the court. The court held that its jurisdiction was not ousted, but it was obliged to direct the parties to comply with the agreed arbitration process first. No special circumstances were presented to justify bypassing arbitration. Accordingly, the application was stayed pending the outcome of arbitration, and no final interdict was granted. Each party was ordered to pay its own costs,...

Court Disposition

Application stayed pending arbitration; declaratory relief granted regarding incorporation of disciplinary code; no final interdict issued; each party to pay its own costs.

Orders

  • The application is heard as one of urgency.
  • It is declared that the applicant's contract of employment incorporates the Transnet SOC Limited's Disciplinary Code and Procedure.