Kruger and Others v Aciel Geomatics (Pty) Ltd (JA87/2014) [2016] ZALAC 29; (2016) 37 (ILJ) 2567 (LAC) (14 June 2016)

Kruger and Others v Aciel Geomatics (Pty) Ltd (JA87/2014) [2016] ZALAC 29; (2016) 37 (ILJ) 2567 (LAC) (14 June 2016)

The Labour Appeal Court held that the cancellation of a non-exclusive distribution agreement between Leica and GSA, followed by the appointment of Aciel as distributor, did not constitute a transfer of business as a going concern under section 197 of the LRA. The Court found no evidence of a discrete business entity being transferred from GSA to Aciel, nor any contractual arrangement obliging GSA to transfer assets, goodwill, or employees. The employment of a minority of GSA staff by Aciel and the transfer of some customers did not amount to a transfer of the business. The Court further held that GSA's intervention as a co-respondent supporting the relief sought by the applicants was...

Citation
[2016] ZALAC 29
Parties
Appellant: Jan Kruger; Appellant: Geosystems Africa (Pty) Ltd; Appellant: Persons listed in Annexure A; Respondent: Aciel Geomatics (Pty) Ltd
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
14 June 2016
Case Number
JA87/2014
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment
Outcome
Appeal dismissed with costs, including the costs of two counsel.
Judges
Waglay JP, Tlaletsi DJP, Davis JA
Legal Topics
Transfer of Business as Going Concern, Section 197 Lra, Motion Proceedings, Affidavit Striking Out, Employee Protection
Labour Law Civil Procedure Transfer of Business as Going Concern Section 197 Lra Motion Proceedings Affidavit Striking Out Employee Protection

Case Brief

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Parties

Jan Kruger

Appellant

Geosystems Africa (Pty) Ltd

Appellant

Persons listed in Annexure A

Appellant

Aciel Geomatics (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment

Legal Issues

  1. 1 Whether the cancellation of a non-exclusive distribution agreement triggers the application of section 197 of the Labour Relations Act.
  2. 2 Whether the intervention of a co-respondent as an applicant in motion proceedings is permissible under South African law.
  3. 3 Whether the employment of certain employees by the new distributor constitutes a transfer of business as a going concern.

Ratio Decidendi

The Labour Appeal Court held that the cancellation of a non-exclusive distribution agreement between Leica and GSA, followed by the appointment of Aciel as distributor, did not constitute a transfer of business as a going concern under section 197 of the LRA. The Court found no evidence of a discrete business entity being transferred from GSA to Aciel, nor any contractual arrangement obliging GSA to transfer assets, goodwill, or employees. The employment of a minority of GSA staff by Aciel and the transfer of some customers did not amount to a transfer of the business. The Court further held that GSA's intervention as a co-respondent supporting the relief sought by the applicants was...

Court Disposition

Appeal dismissed with costs, including the costs of two counsel.

Orders

  • The appeal is dismissed.
  • The appellants are ordered to pay the costs of the appeal, including the costs of two counsel.