Katiso Transport and Logistics CC and Another v Eagle Liner Transport (Pty) Ltd and Others (JA118/2022) [2023] ZALAC 31; [2024] 3 BLLR 255 (LAC) (30 November 2023)

Katiso Transport and Logistics CC and Another v Eagle Liner Transport (Pty) Ltd and Others (JA118/2022) [2023] ZALAC 31; [2024] 3 BLLR 255 (LAC) (30 November 2023)

The Labour Appeal Court held that only the cross-border bus service, consisting of 13 buses and their drivers, was transferred as a going concern from the first respondent to the first appellant. The original declaratory order was overly broad, as it could be interpreted to include employees not associated with the cross-border service, thereby precluding the parties from disputing employment relationships in respect of the inter-provincial service in pending arbitration proceedings. The order was set aside and replaced with one limited to employees involved in the cross-border service. No order as to costs was made.

Citation
[2023] ZALAC 31
Parties
Appellant: Katiso Transport and Logistics CC; Appellant: Ghalib Ismail; Respondent: Eagle Liner Transport (Pty) Ltd; Respondent: The South African Road Passenger Bargaining Council; Respondent: The individuals listed in Annexure 'A' to the Notice of Motion
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
30 November 2023
Case Number
JA118/2022
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment Delivered 5 April 2022
Outcome
Appeal upheld; original order set aside and replaced with a limited declaratory order.
Judges
Mlambo JA, Davis JA, Smith AJA
Legal Topics
Transfer of Business, Section 197 Lra, Declaratory Relief, Employment Contracts, Res Judicata
Labour Law Civil Procedure Transfer of Business Section 197 Lra Declaratory Relief Employment Contracts Res Judicata

Case Brief

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Parties

Katiso Transport and Logistics CC

Appellant

Ghalib Ismail

Appellant

Eagle Liner Transport (Pty) Ltd

Respondent

The South African Road Passenger Bargaining Council

Respondent

The individuals listed in Annexure 'A' to the Notice of Motion

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment Delivered 5 April 2022

Legal Issues

  1. 1 Whether the transfer of the cross-border bus service constituted a transfer of part of the business as a going concern under section 197 of the Labour Relations Act.
  2. 2 Whether the employment contracts of employees associated with the cross-border service were transferred to the appellants under section 197.
  3. 3 Whether the declaratory order of the court a quo was overly broad in its application to employees not involved in the cross-border service.

Ratio Decidendi

The Labour Appeal Court held that only the cross-border bus service, consisting of 13 buses and their drivers, was transferred as a going concern from the first respondent to the first appellant. The original declaratory order was overly broad, as it could be interpreted to include employees not associated with the cross-border service, thereby precluding the parties from disputing employment relationships in respect of the inter-provincial service in pending arbitration proceedings. The order was set aside and replaced with one limited to employees involved in the cross-border service. No order as to costs was made.

Court Disposition

Appeal upheld; original order set aside and replaced with a limited declaratory order.

Orders

  • The cross-border service of the first respondent, consisting of 13 buses and drivers thereof, has been transferred as a going concern from the first respondent to the first appellant.
  • There is no order as to costs.