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South Africa Judgment

Labour Court

Harrisawak v La Farge (South Africa) (D353/2000) [2001] ZALC 35; [2001] 6 BLLR 614 (LC); (2001) 22 ILJ 1395 (LC) (1 March 2001)

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01

Holding and result

The Labour Court found that it has jurisdiction to make a settlement agreement relating to an employment dispute an order of court under section 158(1)(c) of the LRA, even if the agreement was concluded without the direct intervention of the CCMA, provided the dispute was pending before the CCMA at the time of settlement. However, the application was dismissed because, on the applicant's own version, he had tendered his services and they were accepted, resulting in a new contract of employment. The subsequent termination of that contract constituted a new cause of action, and the enforcement of the original settlement agreement was no longer appropriate.

Court disposition

Application dismissed.

Orders

  • The application is dismissed.
  • There is no order as to costs.

02

Material facts

Parties

Ramlall Harrisawak

Applicant Counsel: Mr MacGregor

La Farge (South Africa)

Respondent Counsel: Mr Lawrence

03

Procedural history

  1. Posture

    Urgent Application / Application to Make Oral Settlement Agreement an Order of Court Under Section 158(1)(c) of the Lra.

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that the oral settlement agreement, which related to his employment dispute, should be made an order of court under section 158(1)(c) of the LRA, even though it was not entered into under the auspices of the CCMA. He contended that the agreement was reached while the dispute was pending before the CCMA and therefore fell within the Labour Court's jurisdiction.
Respondent
The respondent submitted that the settlement agreement was a private agreement not determined by the CCMA at conciliation or arbitration, and thus should be enforced in the civil courts. The respondent argued that the cause of action arose from the agreement itself, not from the employment relationship, and that section 158(1)(c) does not confer jurisdiction on the Labour Court in such circumstances.

05

Court’s reasoning

  1. 01

    Labour Relations Act No 66 of 1995, section 158(1)(c)

    Section 158(1)(c) of the LRA empowers the Labour Court to make any arbitration award or any settlement agreement, other than a collective agreement, an order of court.

  2. 02

    Labour Relations Act No 66 of 1995

    The stated purpose of the LRA is to provide effective dispute resolution in labour disputes, including the provision of services by personnel competent and qualified to resolve such disputes.

06

Ratio, limits and disposition

Ratio decidendi

The Labour Court found that it has jurisdiction to make a settlement agreement relating to an employment dispute an order of court under section 158(1)(c) of the LRA, even if the agreement was concluded without the direct intervention of the CCMA, provided the dispute was pending before the CCMA at the time of settlement. However, the application was dismissed because, on the applicant's own version, he had tendered his services and they were accepted, resulting in a new contract of employment. The subsequent termination of that contract constituted a new cause of action, and the enforcement of the original settlement agreement was no longer appropriate.

Obiter and limits

  • The points raised in limine were novel and the applicant was bona fide in bringing the application, justifying no order as to costs.
  • The interpretation of section 158(1)(c) should not be unduly restrictive, as the section uses the word 'any' before 'settlement agreement'.

Court disposition

Application dismissed.

  • The application is dismissed.
  • There is no order as to costs.

Source and reliance status

Labour Court

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Judgment reading view

Judgment text

The complete available source text.

Source document

Labour Court

Judgment

[2001] ZALC 35

D353/00-CRB/CD - 3 - JUDGMENT

CASE NO : D353/2000 Revised/Reportable

DATE : 1 March 2001

RAMLALL HARRISAWAK versus LA FARGE (SOUTH AFRICA)

JUDGMENT

PILLAY J

[1] This is an application in terms of section 158(1)(c) of the Labour Relations Act No 66 of 1995, (the "LRA") to have an oral settlement agreement made an order of court. There are substantial disputes of fact. However, the parties are agreed that the points raised in limine can be dealt with on the facts that are either common cause or on the basis of the applicant's case.

[2] The first point in limine is that the settlement agreement was not entered into under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA). Hence, it was submitted, the Court does not have jurisdiction.

[3] It is common cause that the applicant had referred his dismissal dispute to the CCMA for conciliation which was unsuccessful.

[4] Before arbitration, the parties entered into a settlement. The terms of the settlement on the applicant's version was that the applicant would be employed on a twelve-month fixed term contract. The settlement occurred without the direct intervention of the CCMA. In the circumstances, Mr Lawrence submitted for the respondent, it was a private agreement not determined by the CCMA at conciliation or arbitration and should therefore be enforced in the civil courts as the cause of action arose from the agreement itself and not from the employer/ employee relationship. (Du Toit et al, 3rd edition, at page 582.) Support for this view cannot be found in section 158(1)(c) which reads:

"The Labour Court may make any arbitration award or any settlement agreement other than a collective agreement an order of court."

[5] The interpretation that Mr Lawrence seeks to place on section 158(1)(c) is restrictive and not justified by the use of the words "any" before the word "settlement" in the section. Furthermore, the settlement agreement relates to the employment relationship. The stated purpose of the LRA is to provide effective dispute resolution in labour disputes. That includes the provision of services by personnel competent and qualified to resolve labour disputes. Moreover, the dispute at the time the settlement agreement was entered into was pending as an arbitration before the CCMA.

[6] In the circumstances, the Court has jurisdiction to hear a dispute relating to the enforcement of the settlement agreement about an employment dispute concluded without the direct intervention of the CCMA.

[7] As a result of the settlement agreement, the applicant tendered his services which were accepted. Thereafter, the contract of employment was terminated. The facts that led to the termination of the contract are in dispute. Mr McGregor conceded that it was immaterial who was responsible for the subsequent breach of the agreement for the purposes of determining the second point in limine.

[8] The second point in limine was that the application falls to be dismissed as, on the applicant's version, he tendered his services which were accepted; what occurred thereafter was a new cause of action.

[9] On this ground I find in favour of the respondent. In the circumstances the application is dismissed.

[10] The Court has considered the submissions relating to costs. The points raised in limine are novel. The applicant was bona fide in bringing this application. In the circumstances, there is no order as to costs.

JUDGE PILLAY

IN THE LABOUR COURT OF SOUTH AFRICA Revised/Reportable

HELD AT DURBAN Case No D353/2000 In the matter between:

RAMLALL HARRISAWAK Applicant and LA FARGE (SOUTH AFRICA) Respondent

PRESIDING

OFFICER JUDGE PILLAY FOR APPLICANT MR MacGREGOR Deneys Reitz Inc

FOR

RESPONDENT MR LAWRENCE Garlicke & Bousfield Inc

JUDGMENT 1 MARCH 2001

SNELLER RECORDINGS (PTY) LTD

DURBAN TEL: 031-266-5452 FAX: 031-266-5459

IN THE LABOUR COURT OF SOUTH AFRICA Revised/Reportable

HELD AT DURBAN Case No D353/2000

In the matter between:

RAMLALL HARRISAWAK Applicant

and

LA FARGE (SOUTH AFRICA) Respondent

PRESIDING

OFFICER JUDGE PILLAY

FOR APPLICANT MR MacGREGOR

Deneys Reitz Inc

FOR

RESPONDENT MR LAWRENCE

Garlicke & Bousfield Inc

JUDGMENT 1 MARCH 2001

SNELLER RECORDINGS (PTY) LTD

DURBAN

TEL: 031-266-5452

FAX: 031-266-5459

3

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Authorities

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Labour Relations Act No 66 of 1995

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