Naidoo v Liberty Holdings (JR558/16) [2019] ZALCJHB 56 (19 March 2019)

Naidoo v Liberty Holdings (JR558/16) [2019] ZALCJHB 56 (19 March 2019)

The court held that the applicant, as a senior employee, was bound by the terms of his employment contract and the incorporated Employee Relations Handbook, which required dismissal disputes to be resolved by private arbitration. The arbitrator correctly found that the CCMA lacked jurisdiction, as the parties had contractually agreed to private arbitration and the respondent undertook to cover all arbitration costs. Section 147(6) of the Labour Relations Act was properly applied, confirming that the decision to pursue private arbitration rests with the applicant, but the CCMA cannot hear the dispute. The review application was dismissed as the arbitrator's jurisdictional ruling was correct.

Citation
[2019] ZALCJHB 56
Parties
Applicant: Krean Naidoo; Respondent: Liberty Holdings
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
19 March 2019
Case Number
JR558/16
Procedural Posture
Review Application / Review of CCMA Jurisdiction Ruling
Outcome
Review application dismissed. No order as to costs.
Judges
Raphulu L
Legal Topics
Ccma Jurisdiction, Private Arbitration Agreements, Unfair Dismissal, Contractual Terms in Employment, Section 147 Lra
Labour Law Civil Procedure Ccma Jurisdiction Private Arbitration Agreements Unfair Dismissal Contractual Terms in Employment Section 147 Lra

Case Brief

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Parties

Krean Naidoo

Applicant

Liberty Holdings

Respondent

Procedural Posture

Review Application / Review of CCMA Jurisdiction Ruling

Legal Issues

  1. 1 Whether the CCMA has jurisdiction to hear the applicant's unfair dismissal dispute given the private arbitration clause in the employment contract.
  2. 2 Whether the applicant was bound by the Employee Relations Handbook and its dispute resolution provisions.
  3. 3 Whether the arbitrator correctly applied section 147(6) of the Labour Relations Act.

Ratio Decidendi

The court held that the applicant, as a senior employee, was bound by the terms of his employment contract and the incorporated Employee Relations Handbook, which required dismissal disputes to be resolved by private arbitration. The arbitrator correctly found that the CCMA lacked jurisdiction, as the parties had contractually agreed to private arbitration and the respondent undertook to cover all arbitration costs. Section 147(6) of the Labour Relations Act was properly applied, confirming that the decision to pursue private arbitration rests with the applicant, but the CCMA cannot hear the dispute. The review application was dismissed as the arbitrator's jurisdictional ruling was correct.

Court Disposition

Review application dismissed. No order as to costs.

Orders

  • The review application is dismissed.
  • There is no order as to costs.