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South Africa Judgment

Labour Court Cape Town

Lemba and Others v Metro City Protection Services CC (C159/2020) [2022] ZALCCT 11 (21 February 2022)

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Source document

01

Holding and result

The court found that the applicants' retrenchment was substantively fair, as the termination of the respondent's contract by the City of Cape Town was not disputed and provided a valid operational reason. However, the retrenchment was procedurally unfair because the respondent failed to give prior notice, consult with the applicants, and pay the required notice, leave, and severance pay. The respondent's complete disregard for the procedural requirements of section 189 of the Labour Relations Act warranted compensation of six months' remuneration to each applicant, in addition to payment of outstanding amounts and interest.

Court disposition

The applicants' dismissal was procedurally unfair but substantively fair. Compensation and payment of outstanding amounts were ordered.

Orders

  • The applicants' dismissal for operational reasons was procedurally unfair but substantively fair.
  • Within 15 days of the judgment, the respondent must pay each applicant their outstanding wages, notice pay, leave pay, and severance pay as detailed in Annexure 'A' (aggregate amount R211,581.61).
  • The respondent must pay interest at the prescribed rate on the amounts due from the date of termination.
  • The respondent must pay each applicant six months' remuneration as compensation, namely R31,500.
  • No order as to costs.

02

Material facts

Parties

Erik Anetuku Lemba

Applicant Counsel: CJ May

Did Thikaya Tshamala

Applicant Counsel: CJ May

Kabeya Bukasa

Applicant Counsel: CJ May

Butoyi Leonce Nahimana

Applicant Counsel: CJ May

Eric Nimubona

Applicant Counsel: CJ May

Mputuilo Garcia

Applicant Counsel: CJ May

Kasongo Walanga

Applicant Counsel: CJ May

Fidele Sadricmnzayikorera

Applicant Counsel: CJ May

Safili Zozo

Applicant Counsel: CJ May

Hassan Gihungu

Applicant Counsel: CJ May

Seth Tchombo

Applicant Counsel: CJ May

Olivier Nkeshimana

Applicant Counsel: CJ May

Alain Buzanga Mulumba

Applicant Counsel: CJ May

Metro City Protection Services CC

Respondent

Amounts and remedies

  • Aggregate Outstanding Wages, Notice Pay, Leave Pay, and Severance Pay: ZAR 211,581.61
  • Compensation Per Applicant (six Months' Remuneration): ZAR 31,500

03

Procedural history

  1. Posture

    Unfair Dismissal Application / Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicants argued that their dismissal was both substantively and procedurally unfair. They contended that they were not given prior notice of possible retrenchment, nor were they consulted as required by section 189(3) of the Labour Relations Act. They further claimed that they were not paid full notice pay, leave pay, severance pay, and that their monthly remuneration was short paid from January to June 2019. They sought compensation and payment of outstanding amounts.
Respondent
The respondent filed a notice of opposition but did not submit an answering statement or appear at the hearing. The respondent agreed to abide by the outcome of the case and presented no argument.

05

Court’s reasoning

  1. 01

    Labour Relations Act, 66 of 1995, section 189

    An employer must comply with the procedural requirements of section 189 of the Labour Relations Act when dismissing employees for operational reasons, including giving prior notice and consulting affected employees.

  2. 02

    Labour Relations Act, 66 of 1995

    Failure to comply with procedural fairness in retrenchment may result in compensation to affected employees.

  3. 03

    Labour Relations Act, 66 of 1995

    Employees are entitled to outstanding remuneration, notice pay, leave pay, severance pay, and interest on such amounts upon retrenchment.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the applicants' retrenchment was substantively fair, as the termination of the respondent's contract by the City of Cape Town was not disputed and provided a valid operational reason. However, the retrenchment was procedurally unfair because the respondent failed to give prior notice, consult with the applicants, and pay the required notice, leave, and severance pay. The respondent's complete disregard for the procedural requirements of section 189 of the Labour Relations Act warranted compensation of six months' remuneration to each applicant, in addition to payment of outstanding amounts and interest.

Obiter and limits

  • The respondent's failure to participate in the proceedings or present any argument did not affect the court's ability to determine the matter based on the applicants' undisputed version.
  • Gross procedural unfairness in retrenchment cases undermines the protections afforded to employees under the Labour Relations Act.

Court disposition

The applicants' dismissal was procedurally unfair but substantively fair. Compensation and payment of outstanding amounts were ordered.

  • The applicants' dismissal for operational reasons was procedurally unfair but substantively fair.
  • Within 15 days of the judgment, the respondent must pay each applicant their outstanding wages, notice pay, leave pay, and severance pay as detailed in Annexure 'A' (aggregate amount R211,581.61).
  • The respondent must pay interest at the prescribed rate on the amounts due from the date of termination.
  • The respondent must pay each applicant six months' remuneration as compensation, namely R31,500.
  • No order as to costs.

Source and reliance status

Labour Court Cape Town

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Judgment reading view

Judgment text

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Source document

Labour Court Cape Town

Judgment

[2022] ZALCCT 11

Not reportable

IN THE LABOUR COURT OF SOUTH AFRICA,

HELD AT CAPE TOWN

case No: C159/2020

In the matter between:

ERIK

ANETUKU

LEMBA

First Applicant

DID

THIKAYA TSHAMALA Second Applicant

KABEYA

BUKASA Third Applicant

BUTOYI

LEONCE NAHIMANA Fourth Applicant

ERIC

NIMUBONA Fifth Applicant

MPUTUILO

GARCIA Sixth Applicant

KASONGO

WALANGA Seventh Applicant

FIDELE SADRICMNZAYIKORERA Eighth Applicant

SAFILI

ZOZO Ninth Applicant

HASSAN GIHUNGU Tenth Applicant

SETH

TCHOMBO

Eleventh Applicant

OLIVIER

NKESHIMANA

Twelfth Applicant

ALAIN

BUZANGA

MULUMBA

Thirteenth Applicant

and

METRO CITY PROTECTION SERVICES CC

Respondent

Date of Set Down: 28 January 2022

Date of Judgment: This judgment was handed down electronically by circulation to the parties’ legal representatives by email, publication on the Labour Court website and release to SAFLII. The date and time for handing down judgment is deemed to be 10h00 on 21 February 2022.

Summary: (Unfair retrenchment – procedurally unfair)

JUDGMENT

LAGRANGE J

Introduction

[1] The matter concerns an alleged unfair dismissal for operational reasons, which the individual applicants claim was substantively and procedurally unfair. The respondent did file a notice of opposition but never filed an answering statement and when the matter was set down for hearing agreed to abide the outcome of the case, without appearing or presenting any argument as it was entitled to.

Summary narrative

[2] The applicants undisputed version of events is that they were notified at the end of June 2019 by their employer in a letter dated 14 June that their contracts of employment would terminate at the end of that month, or on 1 July 2019 in the case of night shift workers. The reason for the termination of the contract was on account of the City of Cape Town (‘the city’) terminating the contract held by the respondent. The applicants were asked to file affidavits

confirming the averments in their statement of case.

[3] On the face of their own version, it appears that the cancellation of the respondent’s contract by the city was the reason for their retrenchment. The applicants did not set out any factual basis for claiming that their retrenchment was substantively unfair, and only made a bald allegation to that effect. Consequently, the court must conclude that the cancellation of the contract by the city was not disputed as a justification for their retrenchment.

[4] In relation to procedural fairness, it is apparent that no prior notice was given to the applicants of their possible retrenchment as required by s 189(3) of the Labour Relations Act, 66 of 1995, and there were no consultations of any kind as required by that section. They were also not paid full notice pay, leave pay and severance pay. Their monthly remuneration was also short paid in varying amounts from 19 January to 19 June 2019. The details of the short payment of remuneration are set out in pages 2 to 4 of Annexure “A” attached to the statement of case. The severance pay, notice pay and accumulated short pay are set out in pages 7 to 11 of the same annexure. They are also entitled to interest on these amounts which were due and payable to them when they were retrenched on 30 June or 1 July.

[5] I am satisfied that the respondent completely failed to comply with the requirements of s 189 and that six months’ remuneration would be appropriate compensation for such a gross disregard for the fair procedural requirements of a dismissal for operational reasons.

Order

[1] The applicants’ dismissal for operational reasons was procedurally unfair but substantively fair.

[2] Within 15 days of the judgment, the respondent must pay each of the applicants the following amounts:

2.1 their outstanding wages, notice pay, leave pay and severance pay as detailed in pages 2 to 4 of Annexure “A” attached to the statement of case (amounting in the aggregate to R 211, 581.61), a copy of which is attached to the judgment;

2.2 interest at the prescribed rate of interest from the date of the termination of their services on the amounts referred to in paragraph 2.1 of this order, and

2.3 six months’ remuneration as compensation, namely R 31, 500 (thirty one thousand five hundred rands).

[3] No order is made as to costs.

_______

Lagrange J

Judge of the Labour Court of South Africa

Representatives:

For the Applicant: CJ

May of BDP Attorneys

For the Respondent: No

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Authorities

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Labour Relations Act, 66 of 1995

Legislation

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