Marumo v Commission for Conciliation Mediation and Arbitration and Others (JR241/03) [2003] ZALC 178 (24 October 2003)

Marumo v Commission for Conciliation Mediation and Arbitration and Others (JR241/03) [2003] ZALC 178 (24 October 2003)

The court found that the arbitrator erred in calculating the compensation on the basis of an incorrect monthly salary and failed to provide a rational or justifiable reason for awarding only eight months' remuneration when the applicant was out of employment for fifteen months. The arbitrator did not properly apply section 194(1) of the Labour Relations Act, which requires a just and equitable award up to a maximum of twelve months' remuneration. The court held that the compensation should be recalculated based on the correct monthly salary and the maximum permissible period, and substituted the award accordingly. Remitting the matter was deemed unnecessary due to the lapse of time and...

Citation
[2003] ZALC 178
Parties
Applicant: J M Marumo; Respondent: Commission for Conciliation Mediation and Arbitration; Respondent: Real Workers Union
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
24 October 2003
Case Number
JR241/03
Procedural Posture
Review Application / Judgment on Review of Arbitration Award
Outcome
Paragraph 2 of the arbitration award is set aside and substituted with an order for payment of 12 months' remuneration at R2 758,88 per month, totaling R33 106,56, to be paid within 14 days of service of the order. No order as to costs.
Judges
Mbenenge
Legal Topics
Unfair Dismissal, Compensation Award, Review of Arbitration, Quantum of Compensation
Labour Law Civil Procedure Unfair Dismissal Compensation Award Review of Arbitration Quantum of Compensation

Case Brief

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Parties

J M Marumo

Applicant

Commission for Conciliation Mediation and Arbitration

Respondent

Real Workers Union

Respondent

Procedural Posture

Review Application / Judgment on Review of Arbitration Award

Legal Issues

  1. 1 Was the compensation awarded to the applicant based on the correct monthly salary amount.
  2. 2 Did the arbitrator exercise his discretion properly in determining the quantum of compensation.
  3. 3 Was the compensation award just and equitable in terms of section 194(1) of the Labour Relations Act.

Ratio Decidendi

The court found that the arbitrator erred in calculating the compensation on the basis of an incorrect monthly salary and failed to provide a rational or justifiable reason for awarding only eight months' remuneration when the applicant was out of employment for fifteen months. The arbitrator did not properly apply section 194(1) of the Labour Relations Act, which requires a just and equitable award up to a maximum of twelve months' remuneration. The court held that the compensation should be recalculated based on the correct monthly salary and the maximum permissible period, and substituted the award accordingly. Remitting the matter was deemed unnecessary due to the lapse of time and...

Court Disposition

Paragraph 2 of the arbitration award is set aside and substituted with an order for payment of 12 months' remuneration at R2 758,88 per month, totaling R33 106,56, to be paid within 14 days of service of the order. No order as to costs.

Orders

  • Paragraph 2 of the award of the second respondent dated 31 January 2003 is set aside.
  • The respondent is ordered to pay the applicant the equivalent of 12 months' remuneration calculated at R2 758,88 per month, totaling R33 106,56.