Pama and Others v Commissioner for Conciliation Mediation and Arbitration and Others (C341/00) [2001] ZALC 71; [2001] 9 BLLR 1079 (LC) (18 May 2001)

Pama and Others v Commissioner for Conciliation Mediation and Arbitration and Others (C341/00) [2001] ZALC 71; [2001] 9 BLLR 1079 (LC) (18 May 2001)

The Court held that section 41(4) of the BCEA contemplates that an offer of alternative employment may be made by either the employer or another employer, and that the third respondent had complied with the statutory requirements by facilitating the applicants’ employment with Biz Africa. The applicants’ acceptance of alternative employment meant that they were not entitled to severance pay. The Commissioner’s interpretation of the relevant statutory provisions was reasonable and did not amount to a gross irregularity or misconduct. The application for review was accordingly dismissed.

Citation
[2001] ZALC 71
Parties
Applicant: B M Pama & Others; Respondent: Commissioner for Conciliation Mediation and Arbitration; Respondent: Willem Adrriaan Kruger; Respondent: Melville Spar CC
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
18 May 2001
Case Number
C341/00
Procedural Posture
Review Application / Judgment
Outcome
Application for review dismissed with costs.
Judges
Pillay
Legal Topics
Severance Pay, Transfer of Business, Alternative Employment, Gross Irregularity, Dismissal for Operational Requirements
Labour Law Severance Pay Transfer of Business Alternative Employment Gross Irregularity Dismissal for Operational Requirements

Case Brief

Summary, issues, holding and outcome

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Parties

B M Pama & Others

Applicant

Commissioner for Conciliation Mediation and Arbitration

Respondent

Willem Adrriaan Kruger

Respondent

Melville Spar CC

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the applicants were entitled to severance pay upon the sale of the business as a going concern.
  2. 2 Whether the offer of alternative employment by the new employer, Biz Africa, satisfied the requirements of section 41(4) of the BCEA.
  3. 3 Whether the Commissioner committed a gross irregularity or misconduct in the arbitration proceedings.

Ratio Decidendi

The Court held that section 41(4) of the BCEA contemplates that an offer of alternative employment may be made by either the employer or another employer, and that the third respondent had complied with the statutory requirements by facilitating the applicants’ employment with Biz Africa. The applicants’ acceptance of alternative employment meant that they were not entitled to severance pay. The Commissioner’s interpretation of the relevant statutory provisions was reasonable and did not amount to a gross irregularity or misconduct. The application for review was accordingly dismissed.

Court Disposition

Application for review dismissed with costs.

Orders

  • The application for review is dismissed.
  • The applicants are ordered to pay the costs of the application.