Hlophe v TS Galaxy FC (C1083/2018) [2022] ZALCCT 21 (9 May 2022)

Hlophe v TS Galaxy FC (C1083/2018) [2022] ZALCCT 21 (9 May 2022)

The court found that the applicant failed to establish that a transfer of business as a going concern occurred under section 197 of the Labour Relations Act. The evidence showed only the sale of the right to participate in the NSL First Division, with no proof of asset or workforce transfer sufficient to constitute a business transfer. The applicant's acceptance of benefits under the proposed settlement agreement, without reservation or restitution, amounted to tacit acceptance of its terms, rendering his claim unenforceable on grounds of public policy. The Labour Court therefore lacked jurisdiction to entertain the claim for contractual damages against the respondent, and the referral...

Citation
[2022] ZALCCT 21
Parties
Applicant: Menzi Hlophe; Respondent: TS Galaxy formerly known as Cape Town All Stars Football Club
Court
Labour Court Cape Town
Jurisdiction
South Africa
Judgment Date
9 May 2022
Case Number
C1083/2018
Procedural Posture
Civil Judgment / In Limine Objections; Interlocutory Proceedings
Outcome
The applicant's referral is dismissed; no order as to costs.
Judges
Lagrange
Legal Topics
Section 197 Transfer, Contractual Damages, Full and Final Settlement, Jurisdiction, Public Policy, Arbitration Agreement
Labour Law Civil Procedure Section 197 Transfer Contractual Damages Full and Final Settlement Jurisdiction Public Policy Arbitration Agreement

Case Brief

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Parties

Menzi Hlophe

Applicant

TS Galaxy formerly known as Cape Town All Stars Football Club

Respondent

Procedural Posture

Civil Judgment / In Limine Objections; Interlocutory Proceedings

Legal Issues

  1. 1 Whether a transfer of business as a going concern under section 197 of the Labour Relations Act occurred between Cape Town All Stars and TS Galaxy.
  2. 2 Whether the Labour Court has jurisdiction to entertain the applicant's claim for contractual damages against the respondent.
  3. 3 Whether the applicant is bound by a full and final settlement agreement despite not signing it.

Ratio Decidendi

The court found that the applicant failed to establish that a transfer of business as a going concern occurred under section 197 of the Labour Relations Act. The evidence showed only the sale of the right to participate in the NSL First Division, with no proof of asset or workforce transfer sufficient to constitute a business transfer. The applicant's acceptance of benefits under the proposed settlement agreement, without reservation or restitution, amounted to tacit acceptance of its terms, rendering his claim unenforceable on grounds of public policy. The Labour Court therefore lacked jurisdiction to entertain the claim for contractual damages against the respondent, and the referral...

Court Disposition

The applicant's referral is dismissed; no order as to costs.

Orders

  • The respondent's in limine objection that the court has no jurisdiction to entertain the applicant's claim for contractual damages against the respondent, in the absence of a section 197 transfer, is upheld.
  • The applicant's claim for contractual damages arising from the termination of his employment by his former employer is unenforceable on grounds of public policy.