Medicare Healthcare Group (Pty) Ltd and Others v Dr F Budding & Associates and Others (D1233/19) [2019] ZALCD 11 (7 November 2019)

Medicare Healthcare Group (Pty) Ltd and Others v Dr F Budding & Associates and Others (D1233/19) [2019] ZALCD 11 (7 November 2019)

The court found that the cancellation of the Administration Agreement did not result in the transfer of a business or part thereof as a going concern under section 197 of the Labour Relations Act. The applicant merely provided services to the respondent, and its business was not transferred. The equipment was either...

Source-derived case information.

Citation
[2019] ZALCD 11
Parties
Applicant: Medicare Healthcare Group (Pty) Ltd; Applicant: The Employees Listed In Annexure A; Respondent: Dr F Budding & Associates No. 158 Inc; Respondent: EXP Consulting Group Holdings (Pty) Ltd; Respondent: The Employees Listed In Annexure B; Respondent: EXP Healthcare Solutions (Pty) Ltd; Respondent: Icebreakers Equipment (Pty) Ltd
Court
Labour Court Durban
Jurisdiction
South Africa
Judgment Date
7 November 2019
Case Number
D1233/19
Procedural Posture
Urgent Application / Judgment Delivered After Urgent Hearing
Outcome
Application dismissed with costs awarded against the first applicant in favour of the first, second, and ninth respondents.
Judges
D H Gush
Legal Topics
Section 197 Transfer, Transfer as Going Concern, Employment Contracts, Costs Award
Labour Law Section 197 Transfer Transfer as Going Concern Employment Contracts Costs Award

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Summary, issues, holding and outcome

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Parties

Medicare Healthcare Group (Pty) Ltd

Applicant

The Employees Listed In Annexure A

Applicant

Dr F Budding & Associates No. 158 Inc

Respondent

EXP Consulting Group Holdings (Pty) Ltd

Respondent

The Employees Listed In Annexure B

Respondent

EXP Healthcare Solutions (Pty) Ltd

Respondent

Icebreakers Equipment (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Judgment Delivered After Urgent Hearing

Legal Issues

  1. 1 Whether the termination of the Administration Agreement resulted in a transfer of business as a going concern under section 197 of the Labour Relations Act.
  2. 2 Whether the employment contracts of the affected employees were automatically transferred to the first respondent.
  3. 3 Whether costs should be awarded against the applicants.

Ratio Decidendi

The court found that the cancellation of the Administration Agreement did not result in the transfer of a business or part thereof as a going concern under section 197 of the Labour Relations Act. The applicant merely provided services to the respondent, and its business was not transferred. The equipment was either leased and returned or remained the property of the applicant, and the employees were not dedicated solely to the respondent. The facts did not support a section 197 transfer, and the application was dismissed. Costs were awarded against the first applicant in favour of the first, second, and ninth respondents, as there was no reason in law or fairness to depart from the...

Court Disposition

Application dismissed with costs awarded against the first applicant in favour of the first, second, and ninth respondents.

Orders

  • The first applicant’s application is dismissed.
  • The first applicant is ordered to pay the first, second and ninth respondents’ costs.