Mpumalanga Development Corporation v Commission for Conciliation Mediation and Arbitration and Others (J4379/99) [2001] ZALC 54 (17 April 2001)
The Labour Court held that the Commission for Conciliation, Mediation and Arbitration did not have jurisdiction to adjudicate the dispute regarding notice pay, as such pay does not fall within the definition of 'benefits' under schedule 7(2)(b) of the Labour Relations Act. The dispute was not of an unfair dismissal...
Source-derived case information.
- Citation
- [2001] ZALC 54
- Parties
- Applicant: Mpumalanga Development Corporation; Respondent: Commission for Conciliation, Mediation and Arbitration; Respondent: Mbileni CS; Respondent: Cronje PS
- Court
- Labour Court
- Jurisdiction
- South Africa
- Case Number
- J4379/99
- Procedural Posture
- Review Application / Unopposed Review Under Section 144 of the Labour Relations Act
- Outcome
- The review was upheld and the arbitration award was set aside.
- Judges
- Pienaar
- Legal Topics
- Jurisdiction of Ccma, Definition of Benefits, Notice Pay, Review of Arbitration Award
Source-derived case record
Summary, issues, holding and outcome
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Parties
Mpumalanga Development Corporation
Applicant
Commission for Conciliation, Mediation and Arbitration
Respondent
Mbileni CS
Respondent
Cronje PS
Respondent
Procedural Posture
Review Application / Unopposed Review Under Section 144 of the Labour Relations Act
Legal Issues
- 1 Whether the Commission for Conciliation, Mediation and Arbitration had jurisdiction to adjudicate the dispute regarding notice pay.
- 2 Whether notice pay constitutes a 'benefit' under schedule 7(2)(b) of the Labour Relations Act.
- 3 Whether the dispute was of an unfair dismissal nature.
Ratio Decidendi
The Labour Court held that the Commission for Conciliation, Mediation and Arbitration did not have jurisdiction to adjudicate the dispute regarding notice pay, as such pay does not fall within the definition of 'benefits' under schedule 7(2)(b) of the Labour Relations Act. The dispute was not of an unfair dismissal nature and therefore could not be adjudicated within that framework. The award made by the Second Respondent was reviewed and set aside.
Court Disposition
The review was upheld and the arbitration award was set aside.
Orders
- The award by the Second Respondent dated 2 September 1999 is reviewed and set aside.
- There is no order as to costs.
Full Case Text
Judgment text and source record
45 paragraphs
4
IN THE LABOUR COURT OF SOUTH AFRICA
HELD AT JOHANNESBURG
Case No. J4379/99
In the matter between:
Mpumalanga Development Corporation APPLICANT
and
Commission for Conciliation
Mediation and Arbitration FIRST RESPONDENT
Mbileni CS SECOND RESPONDENT
Cronje PS THIRD RESPONDENT
JUDGEMENT
PIENAAR, A J
INTRODUCTION
This is an unopposed review in terms of section 144 of the Labour Relations Act No 66 of 1995, as amended.
The Applicant is Mpumalanga Development Corporation.
The First Respondent is the Commission for Conciliation, Mediation and Arbitration.
The Second Respondent is Mr Mbileni, the Commissioner who presided over the arbitration.
The Third Respondent is P S Cronje, an ex-employee of the Applicant.
The Applicant seeks to review the award by the Second Respondent in terms of which the Second Respondent ordered that the Applicant pay the First Respondent benefits in excess of R19 000,00 to which the Applicant is entitled.
The Applicant submitted that the First Respondent did not have the jurisdictional competence to make an award.
BACKGROUND
During November 1998 the Applicant issued letters to its employees inviting them to apply for voluntary severance packages.
The Applicant signed a letter applying for a voluntary severance package.
Due to an administrative error, the last working day of the Third Respondent was reflected as 31 March 1997 with the result that the notice period would be during April 1999. The Human Resources Department of the Applicant rectified the error in terms of which the notice period would be effected as from beginning January 1999.
The Third Respondent then approached the First Respondent in terms of which he claimed the notice pay for February 1999.
The Third Respondentâs claim was therefore for the notice period of February 1999.
REVIEW
It is clear that the Second Respondent did not have the necessary jurisidiction to adjudicate the dispute insofar as the notice pay for February 1999 fell outside âbenefitsâ in terms of schedule 7(2)(b) of the Act.
The dispute before the Commissioner was furthermore not of an unfair dismissal nature and could as such also not be adjudicated within the framework thereof.
It is trite law that wages and salaries should be excluded from the term âbenefitsâ. Per Revelas J in Galyard vs Tekom SA Ltd (1998) 19 ILJ 1624 LC at pg. 1628 (see also Schoeman and Another vs Samsung Electronics SA (Pty) Ltd 1997 19 ILJ 1098 (LC) and also Du Toit et al in The Labour Relations Act of 1995 2nd Edition at pg 444.
The Third Respondent has in any event issued summons against the Applicant in the Magistrateâs Court to recover the amount in respect of the notice pay.
FINDING
The First and Second Respondent did not have jurisdiction to adjudicate the dispute.
The award by the Second Respondent dated 2 September 1999 is hereby reviewed and set aside.
There is no order as to costs.
ACTING JUDGE PIENAAR
17 April 2001
PARTIES APPEARING BEFORE THE COURT:
APPLICANT REPRESENTED BY:
Maserumule & Partners
Mr M Sihlali / Mr H Vuso
4 [Mpumalanga Development Corporation v Cronje.doc 17 April 2001]
[Mpumalanga Development Corporation v Cronje.doc
17 April 2001]