Kynoch Feeds (Pty) Ltd v Commission for Conciliation, Mediation and Arbitration and Others (J829/97) [1997] ZALC 15 (15 December 1997)

Kynoch Feeds (Pty) Ltd v Commission for Conciliation, Mediation and Arbitration and Others (J829/97) [1997] ZALC 15 (15 December 1997)

The Labour Court found that the CCMA commissioner erred in law and fact by concluding that the third respondent was entitled to severance pay. The evidence showed that the third respondent was offered and accepted alternative employment with Kynoch Fertilizer, and the parties tacitly agreed to suspend termination of...

Source-derived case information.

Citation
[1997] ZALC 15
Parties
Applicant: Kynoch Feeds (Pty) Ltd; Respondent: Commission for Conciliation, Mediation and Arbitration; Respondent: Advocate Khumalo; Respondent: Padayachee M.K
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
15 December 1997
Case Number
J829/97
Procedural Posture
Review Application / Judgment on Review of Arbitration Award
Outcome
The arbitration award dated 25 August 1997 was set aside. The third respondent was ordered to pay the costs of the application.
Judges
E Revelas
Legal Topics
Severance Pay, Retrenchment, Alternative Employment, Arbitration Review, Jurisdiction of Ccma
Labour Law Civil Procedure Severance Pay Retrenchment Alternative Employment Arbitration Review Jurisdiction of Ccma

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 5 Authorities cited 22 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Kynoch Feeds (Pty) Ltd

Applicant

Commission for Conciliation, Mediation and Arbitration

Respondent

Advocate Khumalo

Respondent

Padayachee M.K

Respondent

Procedural Posture

Review Application / Judgment on Review of Arbitration Award

Legal Issues

  1. 1 Whether the CCMA commissioner had jurisdiction to arbitrate the dispute regarding severance pay.
  2. 2 Whether the third respondent was entitled to severance pay following re-deployment.
  3. 3 Whether the arbitration award was reviewable under section 158(1)(g) or section 145 of the Labour Relations Act.

Ratio Decidendi

The Labour Court found that the CCMA commissioner erred in law and fact by concluding that the third respondent was entitled to severance pay. The evidence showed that the third respondent was offered and accepted alternative employment with Kynoch Fertilizer, and the parties tacitly agreed to suspend termination of employment until the offer was accepted. The commissioner ignored material evidence regarding the timing and acceptance of the offer and failed to apply the relevant statutory provisions. The Court held that section 196(3) of the Labour Relations Act precludes entitlement to severance pay where alternative employment is accepted. The arbitration award was unsupported by...

Court Disposition

The arbitration award dated 25 August 1997 was set aside. The third respondent was ordered to pay the costs of the application.

Orders

  • The arbitration award dated 25 August 1997 is set aside in its entirety.
  • The third respondent is ordered to pay the costs of the application.