National Union of Mineworkers v Maseko and Another (J 3039/02) [2002] ZALC 153; (2002) 23 ILJ 2099 (LC) (26 July 2002)

National Union of Mineworkers v Maseko and Another (J 3039/02) [2002] ZALC 153; (2002) 23 ILJ 2099 (LC) (26 July 2002)

The court held that the union was legally obliged to deduct employee tax from the settlement amount paid to Maseko, in accordance with the Income Tax Act. The payment of the net amount after tax deduction satisfied the union's obligations under the settlement agreement and the court order. The written execution...

Source-derived case information.

Citation
[2002] ZALC 153
Parties
Applicant: National Union of Mineworkers; Respondent: Alfred Maseko; Respondent: The Sheriff for Central Johannesburg
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
26 July 2002
Case Number
J 3039/02
Procedural Posture
Urgent Application / Final Judgment
Outcome
Application granted. The union's obligations under the settlement agreement and court order were satisfied by payment of the net amount after tax deduction. The writ of execution was declared invalid.
Judges
E Revelas
Legal Topics
Settlement Agreement, Tax Deduction on Awards, Writ of Execution, Employee Remuneration, Urgent Interdict
Labour Law Civil Procedure Settlement Agreement Tax Deduction on Awards Writ of Execution Employee Remuneration Urgent Interdict

Source-derived case record

Summary, issues, holding and outcome

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Parties

National Union of Mineworkers

Applicant

Alfred Maseko

Respondent

The Sheriff for Central Johannesburg

Respondent

Procedural Posture

Urgent Application / Final Judgment

Legal Issues

  1. 1 Whether the union was obliged to pay the full settlement amount to Maseko without deducting employee tax.
  2. 2 Whether the union satisfied its obligations under the court order by paying the net amount after tax deduction.
  3. 3 Whether the written execution issued by Maseko was lawful given the union's payment and tax deduction.

Ratio Decidendi

The court held that the union was legally obliged to deduct employee tax from the settlement amount paid to Maseko, in accordance with the Income Tax Act. The payment of the net amount after tax deduction satisfied the union's obligations under the settlement agreement and the court order. The written execution issued by Maseko was declared to be of no force and effect, as the union had discharged its indebtedness. The court further found that payment to Maseko personally, rather than to his attorneys, did not constitute a breach of the agreement, as the attorneys acted as agents and the object of the agreement was to compensate Maseko. Any dispute between Maseko and his attorneys...

Court Disposition

Application granted. The union's obligations under the settlement agreement and court order were satisfied by payment of the net amount after tax deduction. The writ of execution was declared invalid.

Orders

  • It is declared that the written execution issued under case number J 1027/02 on 8 July 2002 is of no force and effect.
  • The applicant has satisfied its indebtedness to the respondent as reflected in paragraph 1.2 of the memorandum of agreement dated 14 June 2002. First respondent has no claim in law to that sum.