P G Group (Pty) Ltd v Mbambo NO and Others (JR215/2004) [2004] ZALCJHB 8 (26 October 2004)

P G Group (Pty) Ltd v Mbambo NO and Others (JR215/2004) [2004] ZALCJHB 8 (26 October 2004)

The court found that the decision to terminate the third respondent's appointment as director, although executed by the holding company as sole shareholder, was in law a decision of the applicant company itself. The actions of members in a general meeting are attributable to the company. The third respondent was employed under a contract of employment and regarded by both parties as an employee. The Labour Relations Act does not exclude directors from its protection, and the Bargaining Council had jurisdiction to conciliate the dispute. The applicant's arguments regarding the distinction between shareholder and company actions, and the status of directors under the Act, were rejected. The...

Citation
[2004] ZALCJHB 8
Parties
Applicant: P G Group (Pty) Ltd; Respondent: Commissioner L Mbambo N.O.; Respondent: The National Bargaining Council for the Chemical Industry; Respondent: Philip Thomas Peter Clatworthy
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
26 October 2004
Case Number
JR215/2004
Procedural Posture
Review Application / Application to Review and Set Aside Jurisdictional Ruling
Outcome
Application dismissed.
Judges
Revelas
Legal Topics
Jurisdiction of Bargaining Council, Definition of Employee, Unfair Dismissal, Review of Commissioner Decision
Labour Law Civil Procedure Jurisdiction of Bargaining Council Definition of Employee Unfair Dismissal Review of Commissioner Decision

Case Brief

Summary, issues, holding and outcome

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Parties

P G Group (Pty) Ltd

Applicant

Commissioner L Mbambo N.O.

Respondent

The National Bargaining Council for the Chemical Industry

Respondent

Philip Thomas Peter Clatworthy

Respondent

Procedural Posture

Review Application / Application to Review and Set Aside Jurisdictional Ruling

Legal Issues

  1. 1 Whether the Bargaining Council had jurisdiction to conciliate the alleged unfair dismissal dispute.
  2. 2 Whether the applicant dismissed the third respondent within the meaning of section 186(a) of the Labour Relations Act.
  3. 3 Whether a director is an employee protected by the Labour Relations Act.

Ratio Decidendi

The court found that the decision to terminate the third respondent's appointment as director, although executed by the holding company as sole shareholder, was in law a decision of the applicant company itself. The actions of members in a general meeting are attributable to the company. The third respondent was employed under a contract of employment and regarded by both parties as an employee. The Labour Relations Act does not exclude directors from its protection, and the Bargaining Council had jurisdiction to conciliate the dispute. The applicant's arguments regarding the distinction between shareholder and company actions, and the status of directors under the Act, were rejected. The...

Court Disposition

Application dismissed.

Orders

  • The application to review and set aside the jurisdictional ruling is dismissed.
  • No punitive costs order is made against the applicant.