High Rustenberg Estate (Pty) Ltd v NEHAWU obo Cornelius and Others (CA11/2016) [2017] ZALAC 20; (2017) 38 ILJ 1758 (LAC) (23 March 2017)

High Rustenberg Estate (Pty) Ltd v NEHAWU obo Cornelius and Others (CA11/2016) [2017] ZALAC 20; (2017) 38 ILJ 1758 (LAC) (23 March 2017)

The Labour Appeal Court held that section 197(5) of the LRA binds the new employer to an arbitration award that was binding on the old employer immediately before the transfer, even if the award is subsequently substituted by the Labour Court after the transfer. The substitution of the award does not alter its...

Source-derived case information.

Citation
[2017] ZALAC 20
Parties
Appellant: High Rustenberg Estate (Pty) Ltd; Respondent: NEHAWU obo J Cornelius and 17 Others; Respondent: High Rustenberg Hydro (Pty) Ltd
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
23 March 2017
Case Number
CA 11/2016
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment on Stated Case
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Davis JA, Hlophe AJJA, Kathree-Setiloane AJJA
Legal Topics
Transfer of Business, Section 197 Lra, Arbitration Award Enforcement, Joinder, Unfair Dismissal
Labour Law Civil Procedure Transfer of Business Section 197 Lra Arbitration Award Enforcement Joinder Unfair Dismissal

Source-derived case record

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 5 Party arguments 2
Sign in to unlock

Parties

High Rustenberg Estate (Pty) Ltd

Appellant

NEHAWU obo J Cornelius and 17 Others

Respondent

High Rustenberg Hydro (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment on Stated Case

Legal Issues

  1. 1 Does section 197(5) of the Labour Relations Act bind a new employer to an arbitration award reversed and substituted by the Labour Court after the transfer of the business?
  2. 2 Is the new employer required to be joined to proceedings before execution against its property can occur?
  3. 3 Does the substitution of an arbitration award by the Labour Court affect the binding nature of the award on the new employer under section 197?

Ratio Decidendi

The Labour Appeal Court held that section 197(5) of the LRA binds the new employer to an arbitration award that was binding on the old employer immediately before the transfer, even if the award is subsequently substituted by the Labour Court after the transfer. The substitution of the award does not alter its binding nature, as the rights and obligations continue seamlessly from the old to the new employer. The timing of the review or appeal does not affect the employees' rights against the new employer. The Court distinguished the present case from Ngema, noting that the issue here was not reinstatement but compensation, and that the new employer had been afforded an opportunity to be...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, including the costs of two counsel.
  • The order of the Labour Court is confirmed.