Kohliso v Secuforce Security Services and Another (C672/2016) [2017] ZALCCT 48 (11 October 2017)

Kohliso v Secuforce Security Services and Another (C672/2016) [2017] ZALCCT 48 (11 October 2017)

The court found that the applicant had an arbitration award in his favour against the first respondent prior to the transfer of business and liquidation. The Memorandum of Agreement and CCMA agreement confirmed that the transfer was effected in terms of section 197A of the Labour Relations Act. Section 197(5) and section 197A require that the new employer is bound by any arbitration award that bound the old employer immediately before the transfer. The Labour Appeal Court has confirmed this interpretation. As the award was binding on the first respondent immediately before the transfer, the second respondent is now bound by the award. The applicant is therefore entitled to enforce the...

Citation
[2017] ZALCCT 48
Parties
Applicant: Mlawuli Shadrack Kohliso; Respondent: Secuforce Security Services; Respondent: Comwezi Security Services
Court
Labour Court Cape Town
Jurisdiction
South Africa
Judgment Date
11 October 2017
Case Number
C672/2016
Procedural Posture
Enforcement Application / Judgment
Outcome
Application granted. The second respondent is bound by the arbitration award and enforcement may proceed against it.
Judges
Rabkin-Naicker
Legal Topics
Transfer of Business, Section 197a, Arbitration Award Enforcement, Insolvency, Collective Agreement
Labour Law Transfer of Business Section 197a Arbitration Award Enforcement Insolvency Collective Agreement

Case Brief

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Parties

Mlawuli Shadrack Kohliso

Applicant

Secuforce Security Services

Respondent

Comwezi Security Services

Respondent

Procedural Posture

Enforcement Application / Judgment

Legal Issues

  1. 1 Whether the second respondent is bound by the arbitration award issued against the first respondent under section 197A of the Labour Relations Act.
  2. 2 Whether the applicant is entitled to enforce the arbitration award against the second respondent following the transfer of business and liquidation of the first respondent.

Ratio Decidendi

The court found that the applicant had an arbitration award in his favour against the first respondent prior to the transfer of business and liquidation. The Memorandum of Agreement and CCMA agreement confirmed that the transfer was effected in terms of section 197A of the Labour Relations Act. Section 197(5) and section 197A require that the new employer is bound by any arbitration award that bound the old employer immediately before the transfer. The Labour Appeal Court has confirmed this interpretation. As the award was binding on the first respondent immediately before the transfer, the second respondent is now bound by the award. The applicant is therefore entitled to enforce the...

Court Disposition

Application granted. The second respondent is bound by the arbitration award and enforcement may proceed against it.

Orders

  • In terms of section 197 read with 197A of the Labour Relations Act, Comwezi Security Services is bound by the Arbitration Award under case number WE 15028-06.
  • A warrant of execution issued in terms of such Award may be issued against Comwezi Security Services.