McLaren and Others v Acting Chief Executive Officer of the National Construction Incubator and Others (123420/24) [2024] ZAGPPHC 1380 (27 December 2024)

McLaren and Others v Acting Chief Executive Officer of the National Construction Incubator and Others (123420/24) [2024] ZAGPPHC 1380 (27 December 2024)

The applicants are entitled to payment of their outstanding salaries from the NCI, their employer, for services rendered from January 2024 to the date of the application. The employment contracts are with the NCI, not SEDA, and the MOA between SEDA and NCI terminated on 31 March 2024. There is no legal basis to hold SEDA or the Minister jointly liable for the applicants' salaries, nor to compel SEDA to release funds to the NCI. The court cannot override the separation of powers or create contractual obligations where none exist. The relief sought against SEDA and the Minister is refused; only the NCI is ordered to pay the outstanding salaries.

Citation
[2024] ZAGPPHC 1380
Parties
Applicant: Clayton Mark McLaren; Applicant: Tlou Ishmael Manamela; Applicant: Lungani Dludla; Applicant: Themba Nkosi; Applicant: Nompumelelo Nyaose; Applicant: Fezile Zondi; Applicant: Samkelo Mahlaba; Applicant: Cedrick Tapamo; Applicant: Refiloe Mokgoshi; Applicant: Lerato Moalusi; Applicant: Mpho Senatle; Applicant: Philile Dlamini; Applicant: Dumiseni Mbambo; Applicant: Mpho Mokoenene; Applicant: Nhlakanipho Mbonambi; Applicant: Mduduzi Dubazane; Applicant: Slindile Ntuli; Applicant: Sbahle Ntshangase; Respondent: Acting Chief Executive Officer of the National Construction Incubator; Respondent: Chairperson of the National Construction Incubator; Respondent: Acting Chief Executive Officer Small Enterprise Development Agency (SEDA); Respondent: Minister of Small Business Development
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
27 December 2024
Case Number
123420/24
Procedural Posture
Urgent Application / Final Judgment on Urgent Application
Outcome
Application granted in part: NCI ordered to pay outstanding salaries; relief against SEDA and the Minister refused.
Judges
Wentzel AJ
Legal Topics
Unpaid Wages, Employment Contract, Urgent Interdict, Separation of Powers
Labour Law Civil Procedure Unpaid Wages Employment Contract Urgent Interdict Separation of Powers

Case Brief

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 7 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Clayton Mark McLaren

Applicant

Tlou Ishmael Manamela

Applicant

Lungani Dludla

Applicant

Themba Nkosi

Applicant

Nompumelelo Nyaose

Applicant

Fezile Zondi

Applicant

Samkelo Mahlaba

Applicant

Cedrick Tapamo

Applicant

Refiloe Mokgoshi

Applicant

Lerato Moalusi

Applicant

Mpho Senatle

Applicant

Philile Dlamini

Applicant

Dumiseni Mbambo

Applicant

Mpho Mokoenene

Applicant

Nhlakanipho Mbonambi

Applicant

Mduduzi Dubazane

Applicant

Slindile Ntuli

Applicant

Sbahle Ntshangase

Applicant

Acting Chief Executive Officer of the National Construction Incubator

Respondent

Chairperson of the National Construction Incubator

Respondent

Acting Chief Executive Officer Small Enterprise Development Agency (SEDA)

Respondent

Minister of Small Business Development

Respondent

Procedural Posture

Urgent Application / Final Judgment on Urgent Application

Legal Issues

  1. 1 Whether the applicants are entitled to payment of outstanding salaries from the National Construction Incubator (NCI).
  2. 2 Whether SEDA and the Minister of Small Business Development can be held jointly liable for the payment of the applicants' salaries.
  3. 3 Whether the court can compel SEDA to release funds to the NCI for the purpose of paying salaries.

Ratio Decidendi

The applicants are entitled to payment of their outstanding salaries from the NCI, their employer, for services rendered from January 2024 to the date of the application. The employment contracts are with the NCI, not SEDA, and the MOA between SEDA and NCI terminated on 31 March 2024. There is no legal basis to hold SEDA or the Minister jointly liable for the applicants' salaries, nor to compel SEDA to release funds to the NCI. The court cannot override the separation of powers or create contractual obligations where none exist. The relief sought against SEDA and the Minister is refused; only the NCI is ordered to pay the outstanding salaries.

Court Disposition

Application granted in part: NCI ordered to pay outstanding salaries; relief against SEDA and the Minister refused.

Orders

  • The first respondent (NCI) is ordered to pay the applicants the total amount of R2,953,797.95, to be paid to each applicant in accordance with the schedules attached to the notice of motion within 10 days of this Order.
  • Payment is to be made into the trust account of the applicants' attorney to be disbursed to the applicants within 10 days of receipt after deducting the agreed contingency fee and/or reasonable fees and disbursements.