Magandela v Great Liquor Discounter Stores (JS989/13) [2016] ZALCJHB 436 (22 November 2016)
- Citation
- [2016] ZALCJHB 436
- Status
- Judgment
- Jurisdiction
- South Africa
- Court
- Labour Court Johannesburg
- Panel
- Lagrange
- Case number
- JS989/13
More details
- Court
- Labour Court Johannesburg
- Panel
- Lagrange
- Case number
- JS989/13
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The court found that the applicant was underpaid in various respects, including wages, overtime, public holiday pay, Sunday overtime, and leave pay, for the period November 2010 to May 2013. The evidence, confirmed on affidavit and supported by detailed calculations, established the amounts due. The respondent failed to oppose the application or provide any evidence to the contrary. The court accepted the applicant's calculations, subject to minor corrections for calculation errors, and ordered payment of the specified amounts together with interest at 15.5% per annum, calculated on a non-compounding basis from the date each payment was due. The court made no order as to costs.
Court disposition
Application for default judgment granted in favour of the applicant.
Orders
- The respondent is ordered to pay the applicant arrear wages in the amount of R17,612.43 within 15 days of receipt of this judgment.
- The respondent is ordered to pay interest on arrear wages in the amount of R12,053.33.
- The respondent is ordered to pay arrear overtime pay in the amount of R21,831.12.
- The respondent is ordered to pay interest on arrear overtime pay in the amount of R15,768.20.
- The respondent is ordered to pay unpaid public holiday pay in the amount of R4,896.98.
- The respondent is ordered to pay interest on unpaid public holiday pay in the amount of R3,160.30.
- The respondent is ordered to pay unpaid Sunday overtime pay worked in December in the amount of R3,184.64.
- The respondent is ordered to pay interest on unpaid Sunday overtime pay worked in December in the amount of R2,616.96.
- The respondent is ordered to pay accrued leave pay for August 2012 to January 2013 in the amount of R1,547.90.
- The respondent is ordered to pay accrued leave pay for February 2013 to April 2013 in the amount of R832.28.
- The respondent is ordered to pay interest on the amounts due for accrued leave pay in the amount of R1,351.23.
- The respondent is ordered to pay unpaid wages for the week ending 11 May 2013 in the amount of R1,125.37.
- The respondent is ordered to pay interest on the unpaid wages for the week ending 11 May 2013 in the amount of R595.98.
- The total amount due is R86,576.72.
- No order as to costs.
02
Material facts
Parties
Farai Magandela
ApplicantThe Great Liquor Discounter Stores
RespondentAmounts and remedies
- Arrear Wages: ZAR 17,612.43
- Interest on Arrear Wages: ZAR 12,053.33
- Arrear Overtime Pay: ZAR 21,831.12
- Interest on Arrear Overtime Pay: ZAR 15,768.2
- Unpaid Public Holiday Pay: ZAR 4,896.98
- Interest on Unpaid Public Holiday Pay: ZAR 3,160.3
- Unpaid Sunday Overtime Pay Worked in December: ZAR 3,184.64
- Interest on Unpaid Sunday Overtime Pay Worked in December: ZAR 2,616.96
- Accrued Leave Pay August 2012 to January 2013: ZAR 1,547.9
- Accrued Leave Pay February 2013 to April 2013: ZAR 832.28
- Interest on Accrued Leave Pay: ZAR 1,351.23
- Unpaid Wages for Week Ending 11 May 2013: ZAR 1,125.37
- Interest on Unpaid Wages for Week Ending 11 May 2013: ZAR 595.98
- Total Due: ZAR 86,576.72
03
Procedural history
Posture
Default Judgment / Final Judgment
04
Questions and positions
Legal issues
- 01
Whether the applicant was underpaid in terms of Sectoral Determination 9 for the Wholesale and Retail Sector.
- 02
Whether the respondent is liable for arrear wages, overtime pay, public holiday pay, Sunday overtime, and leave pay, together with interest.
- 03
How interest should be calculated on the amounts due.
Party arguments
- Applicant
- The applicant contended that he was underpaid in respect of wages, overtime, public holiday pay, Sunday overtime, and leave pay for the period November 2010 to May 2013, contrary to Sectoral Determination 9 and the Basic Conditions of Employment Act. He provided detailed calculations and claimed interest at the prescribed rate from the date each payment was due.
- Respondent
- The respondent did not oppose the application and did not file any answering papers or appear at the hearing.
05
Court’s reasoning
Legal principles
- 01
Sectoral Determination 9, Wholesale and Retail Sector
An employer must pay at least the minimum prescribed wage and benefits as set out in the relevant sectoral determination.
- 02
Section 56(1) of the Basic Conditions of Employment Act, 75 of 1997
Interest on unpaid remuneration is payable at the prescribed rate from the date each payment was due until the date of judgment.
- 03
Court's discretion as applied in this judgment
Where the calculation of interest is uncertain, non-compounding interest should be applied from the ascertainable date of accrual.
06
Ratio, limits and disposition
Ratio decidendi
The court found that the applicant was underpaid in various respects, including wages, overtime, public holiday pay, Sunday overtime, and leave pay, for the period November 2010 to May 2013. The evidence, confirmed on affidavit and supported by detailed calculations, established the amounts due. The respondent failed to oppose the application or provide any evidence to the contrary. The court accepted the applicant's calculations, subject to minor corrections for calculation errors, and ordered payment of the specified amounts together with interest at 15.5% per annum, calculated on a non-compounding basis from the date each payment was due. The court made no order as to costs.
Obiter and limits
- Interest should be calculated on a non-compounding basis where the evidence does not support compounding.
- Where only the year of accrual can be ascertained, interest should run from the end of the relevant year.
Court disposition
Application for default judgment granted in favour of the applicant.
- The respondent is ordered to pay the applicant arrear wages in the amount of R17,612.43 within 15 days of receipt of this judgment.
- The respondent is ordered to pay interest on arrear wages in the amount of R12,053.33.
- The respondent is ordered to pay arrear overtime pay in the amount of R21,831.12.
- The respondent is ordered to pay interest on arrear overtime pay in the amount of R15,768.20.
- The respondent is ordered to pay unpaid public holiday pay in the amount of R4,896.98.
- The respondent is ordered to pay interest on unpaid public holiday pay in the amount of R3,160.30.
- The respondent is ordered to pay unpaid Sunday overtime pay worked in December in the amount of R3,184.64.
- The respondent is ordered to pay interest on unpaid Sunday overtime pay worked in December in the amount of R2,616.96.
- The respondent is ordered to pay accrued leave pay for August 2012 to January 2013 in the amount of R1,547.90.
- The respondent is ordered to pay accrued leave pay for February 2013 to April 2013 in the amount of R832.28.
- The respondent is ordered to pay interest on the amounts due for accrued leave pay in the amount of R1,351.23.
- The respondent is ordered to pay unpaid wages for the week ending 11 May 2013 in the amount of R1,125.37.
- The respondent is ordered to pay interest on the unpaid wages for the week ending 11 May 2013 in the amount of R595.98.
- The total amount due is R86,576.72.
- No order as to costs.
Source and reliance status
Labour Court Johannesburg
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Labour Court Johannesburg
Judgment
THE LABOUR COURT OF SOUTH AFRICA,
HELD AT JOHANNESBURG
Case no: JS 989/13
In the matter between:
FARAI MAGANDELA Applicant and
THE GREAT LIQUOR
DISCOUNTER
STORES First Respondent
Heard: 15 November 2016
Delivered: 22 November 2016
DEFAULT
JUDGMENT
LAGRANGE J
[1] The application for default judgement is unopposed. Having heard the applicant and having considered the evidence confirmed on affidavit, I am satisfied that the applicant was underpaid remuneration due to him in various forms in terms of the Sectoral Determination 9, applicable to the Wholesale and Retail Sector of South Africa published in terms of section 56 (1) of the Basic Conditions of Employment Act, 75 of 1997 (‘the BCEA’), for the period commencing November 2010 up to, and including May 2013.
[2] In particular, the applicant was short paid the amounts set out in Annexure “A” to his founding affidavit dated 3 December 2015, subject to some variations which appear to be calculation errors. Further, the applicable prescribed rate of interest applicable from the date each monthly payment was due until the date of judgment was 15.5 % per annum, as all amounts due and owing arose during the period 1 October 1993 to 31 July 2014 when that rate was unchanged.
[3] However, the applicant’s calculation of the interest due has been amended to reflect non-compounding interest accruing from the time each payment was due as far as that can be ascertained from the evidence. Insofar as amounts where only the year of accrual can be ascertained as in the case of Public Holidays, interest has been attributed as accruing from the end of the relevant year.
Order
[4] The respondent is liable to the applicant in the following amounts which must be paid within 15 days of receipt of this judgment:
4.1 Arrear wages (as detailed in Table A hereto) : R 17,612.43;
4.2 Interest on arrear wages:
R 12,053.33;
4.3 Arrear overtime pay:
R 21,831.12;
4.4 Interest on arrear overtime pay:
R 15,768.20;
4.5 Unpaid public holiday pay:
R 4,896.98;
4.6 Interest on unpaid holiday pay:
R 3,160.30;
4.7 Unpaid Sunday overtime pay worked
In December:
R 3,184.64;
4.8 Interest on unpaid Sunday overtime
pay worked In December:
R 2,616.96;
4.9 Accrued leave pay August 2012 to
January 2013:
R 1,547.90;
4.10 Accrued leave pay February 2013 to
April 2013:
R 832.28,
4.11 Interest on the amounts due in 4.9 and 4.10
above:
R 1,351.23
4.12 Unpaid wages for week ending
11 May 2013:
R 1,125.37,
4.13 Interest on the amounts due in 4.12
above:
R 595.98
TOTAL DUE:
R 86,576.72
[5] No order is made as to costs
_______
Lagrange J
Judge of the Labour Court of South Africa
Appearances:
APPLICANT: In person
Table A: Wage Actual Monthly wage
Minimum Monthly
wage
Shortfall
Per month
Interest per month at 15,5% per annum
Accumulated interest
2010
Nov
3,249.75
4,542.96
1,293.21
Dec
3,249.75
4,542.96
1,293.21
16.70
1,169.28
2011
Jan
3,249.75
4,542.96
1,293.21
16.70
1,152.57
Feb
3,249.75
4,542.96
1,293.21
16.70
1,135.87
Mar
3,249.75
4,542.96
1,293.21
16.70
1,119.17
Apr
3,249.75
4,542.96
1,293.21
16.70
1,102.46
May
5,000.00
5,159.19
159.19
2.06
133.65
June
5,000.00
5,159.19
159.19
2.06
131.60
July
5,000.00
5,159.19
159.19
2.06
129.54
Aug
5,000.00
5,159.19
159.19
2.06
127.48
Sep
5,000.00
5,159.19
159.19
2.06
125.43
Oct
5,000.00
5,159.19
159.19
2.06
123.37
Nov
5,000.00
5,159.19
159.19
2.06
121.32
Dec
5,000.00
5,159.19
159.19
2.06
119.26
2012
Jan
5,000.00
5,159.19
159.19
2.06
117.20
Feb
5,000.00
5,488.83
488.83
6.31
353.59
Mar
5,000.00
5,488.83
488.83
6.31
347.27
Apr
5,000.00
5,488.83
488.83
6.31
340.96
May
5,000.00
5,488.83
488.83
6.31
334.64
June
5,000.00
5,488.83
488.83
6.31
328.33
July
5,000.00
5,488.83
488.83
6.31
322.02
Aug
5,000.00
5,488.83
488.83
6.31
315.70
Sep
5,000.00
5,488.83
488.83
6.31
309.39
Oct
5,000.00
5,488.83
488.83
6.31
303.07
Nov
5,000.00
5,488.83
488.83
6.31
296.76
Dec
5,000.00
5,488.83
488.83
6.31
290.45
2013
Jan
5,000.00
5,488.83
488.83
6.31
284.13
Feb
5,000.00
5,851.50
851.50
11.00
483.94
Mar
5,000.00
5,851.50
851.50
11.00
472.94
Apr
5,000.00
5,851.50
851.50
11.00
461.94
TOTAL
17,612.43
-
12,053.33
Table B: Overtime Actual
Minimum
Per hour
Shortfall
Per hour
Hours
Shortfall
Per month
Interest per month at 15,5 %
Accumulated
Interest
2010
Nov
0
23.30
23.30
27
629.10
8.13
576.94
Dec
0
23.30
23.30
27
629.10
8.13
568.81
2011
Jan
0
23.30
23.30
27
629.10
8.13
560.69
Feb
0
24.14
24.14
27
651.78
8.42
572.48
Mar
0
24.14
24.14
27
651.78
8.42
564.06
Apr
0
24.14
24.14
27
651.78
8.42
555.64
May
0
26.46
26.46
27
714.42
9.23
599.82
June
0
26.46
26.46
27
714.42
9.23
590.59
July
0
26.46
26.46
27
714.42
9.23
581.36
Aug
0
26.46
26.46
27
714.42
9.23
572.13
Sep
0
26.46
26.46
27
714.42
9.23
562.90
Oct
0
26.46
26.46
27
714.42
9.23
553.68
Nov
0
26.46
26.46
27
714.42
9.23
544.45
Dec
0
26.46
26.46
27
714.42
9.23
535.22
2012
Jan
0
26.46
26.46
27
714.42
9.23
525.99
Feb
0
28.15
28.15
27
760.05
9.82
549.77
Mar
0
28.15
28.15
27
760.05
9.82
539.95
Apr
0
28.15
28.15
27
760.05
9.82
530.13
May
0
28.15
28.15
27
760.05
9.82
520.32
June
0
28.15
28.15
27
760.05
9.82
510.50
July
0
28.15
28.15
27
760.05
9.82
500.68
Aug
0
28.15
28.15
27
760.05
9.82
490.87
Sep
0
28.15
28.15
27
760.05
9.82
481.05
Oct
0
28.15
28.15
27
760.05
9.82
471.23
Nov
0
28.15
28.15
27
760.05
9.82
461.41
Dec
0
28.15
28.15
27
760.05
9.82
451.60
2013
Jan
0
28.15
28.15
27
760.05
9.82
441.78
Feb
0
30.10
30.10
27
812.70
10.50
461.88
Mar
0
30.10
30.10
27
812.70
10.50
451.39
Apr
0
30.10
30.10
27
812.70
10.50
440.89
TOTAL
21,831.12
-
15,768.20
Table C: Public Holidays Interest Shortfall Accumulated Interest per annum. 2010 15.50% 372.80 337.07 2011 15.50% 1,831.68 1,372.23 2012 15.50% 1,732.50 1,029.39 2013 15.50% 960.00 421.60 4,896.98 3,160.30 Table D: Sunday Work (December) 2010 15.5% 1,491.20 1,348.29 2011 15.5% 1,693.44 1,268.67 3,184.64 2,616.96
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