Penny v 600 SA Holdings (Pty) Ltd (J565/02) [2002] ZALC 100; (2003) 24 ILJ 967 (LC); [2003] 2 BLLR 200 (LC) (29 November 2002)

Penny v 600 SA Holdings (Pty) Ltd (J565/02) [2002] ZALC 100; (2003) 24 ILJ 967 (LC); [2003] 2 BLLR 200 (LC) (29 November 2002)

The court held that the respondent's tender to pay the award, less any tax directed by the Receiver of Revenue, constituted compliance with the arbitration award, except for the issue of set-off. The respondent was entitled to deduct tax only as directed by the Receiver of Revenue, and the applicant was required to obtain a tax directive. Regarding set-off, the court found that the respondent failed to prove the amount of the alleged loan was capable of prompt and easy ascertainment, as there was a material dispute about the commission earned and the outstanding loan amount. Therefore, the respondent was not entitled to set off the alleged loan against the arbitration award. The...

Citation
[2002] ZALC 100
Parties
Applicant: Hilton Leslie Penny; Respondent: 600 SA Holdings (Pty) Ltd
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
29 November 2002
Case Number
J565/02
Procedural Posture
Urgent Application / Application to Make Arbitration Award an Order of Court Under Section 158(1)(c) of the Labour Relations Act
Outcome
The arbitration award is made an order of court. The respondent is ordered to pay the applicant R180,960.00 within five days, subject to the outcome of a tax directive. Further payment obligations depend on the Receiver of Revenue's determination regarding tax liability.
Judges
Francis
Legal Topics
Arbitration Award Enforcement, Income Tax Deduction, Set Off, Basic Conditions of Employment Act, Compensation for Unfair Labour Practice
Labour Law Civil Procedure Arbitration Award Enforcement Income Tax Deduction Set Off Basic Conditions of Employment Act Compensation for Unfair Labour Practice

Case Brief

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Parties

Hilton Leslie Penny

Applicant

600 SA Holdings (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Application to Make Arbitration Award an Order of Court Under Section 158(1)(c) of the Labour Relations Act

Legal Issues

  1. 1 Whether the respondent's tender constituted compliance with the arbitration award.
  2. 2 Whether the respondent was obliged to deduct income tax from the compensation awarded.
  3. 3 Whether the respondent was entitled to set off an alleged loan against the arbitration award.

Ratio Decidendi

The court held that the respondent's tender to pay the award, less any tax directed by the Receiver of Revenue, constituted compliance with the arbitration award, except for the issue of set-off. The respondent was entitled to deduct tax only as directed by the Receiver of Revenue, and the applicant was required to obtain a tax directive. Regarding set-off, the court found that the respondent failed to prove the amount of the alleged loan was capable of prompt and easy ascertainment, as there was a material dispute about the commission earned and the outstanding loan amount. Therefore, the respondent was not entitled to set off the alleged loan against the arbitration award. The...

Court Disposition

The arbitration award is made an order of court. The respondent is ordered to pay the applicant R180,960.00 within five days, subject to the outcome of a tax directive. Further payment obligations depend on the Receiver of Revenue's determination regarding tax liability.

Orders

  • The arbitration award dated 30 November 2001 issued by Wynand Stapelberg is made an order of court under section 158(1)(c) of the Labour Relations Act.
  • The respondent must pay the applicant R180,960.00 within five days of this order.