Mobile Telephone Networks (Pty) Limited v Pillay and Others (DA02/18) [2019] ZALAC 35; [2019] 8 BLLR 761 (LAC); (2019) 40 ILJ 2011 (LAC) (5 April 2019)

Mobile Telephone Networks (Pty) Limited v Pillay and Others (DA02/18) [2019] ZALAC 35; [2019] 8 BLLR 761 (LAC); (2019) 40 ILJ 2011 (LAC) (5 April 2019)

The Labour Appeal Court held that the respondents' employment continued uninterrupted under section 197 of the LRA following the transfer of the business. The tender of services was implicit in the respondents' conduct in seeking a declaratory order, and the appellant's resistance to their claims amounted to a...

Source-derived case information.

Citation
[2019] ZALAC 35
Parties
Appellant: Mobile Telephone Networks (Pty) Limited; Respondent: Somahkhanthi Pillay and 37 Others
Court
Labour Appeal Court
Jurisdiction
South Africa
Case Number
DA 02/18
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment; Cross Appeal on Interest
Outcome
Appeal dismissed; cross-appeal upheld; costs awarded against appellant.
Judges
Waglay, Coppin, Murphy
Legal Topics
Section 197 Transfer, Arrear Remuneration, Mora Interest, Prescription, Exceptio Non Adimpleti Contractus
Labour Law Civil Procedure Section 197 Transfer Arrear Remuneration Mora Interest Prescription Exceptio Non Adimpleti Contractus

Source-derived case record

Summary, issues, holding and outcome

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Parties

Mobile Telephone Networks (Pty) Limited

Appellant

Somahkhanthi Pillay and 37 Others

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment; Cross Appeal on Interest

  1. 1 Whether the respondents were entitled to payment of remuneration for the period 1 December 2010 to 21 April 2015.
  2. 2 Whether the claims for remuneration had prescribed under the Prescription Act.
  3. 3 Whether mora interest on the arrear remuneration accrued only from the date of the Labour Appeal Court's order or from when the remuneration became due.

Ratio Decidendi

The Labour Appeal Court held that the respondents' employment continued uninterrupted under section 197 of the LRA following the transfer of the business. The tender of services was implicit in the respondents' conduct in seeking a declaratory order, and the appellant's resistance to their claims amounted to a repudiation, relieving the respondents of any obligation to tender performance. The application for a declaratory order interrupted prescription under section 15 of the Prescription Act, and the claims for remuneration had not prescribed. The remuneration became due on the dates fixed in the contracts of employment, and mora interest accrued from the day after each payment became...

Court Disposition

Appeal dismissed; cross-appeal upheld; costs awarded against appellant.

Orders

  • The appeal is dismissed.
  • The cross-appeal (in respect of interest) is upheld.