Phaka and Others v Bracks and Others (JA 3/2014) [2014] ZALAC 73; [2015] 5 BLLR 514 (LAC); (2015) 36 ILJ 1541 (LAC) (18 December 2014)

Phaka and Others v Bracks and Others (JA 3/2014) [2014] ZALAC 73; [2015] 5 BLLR 514 (LAC); (2015) 36 ILJ 1541 (LAC) (18 December 2014)

The court held that the appellants were not employees but independent contractors. The contracts expressly excluded any employment relationship and required the contractors to provide their own vehicles, employ their own staff, and invoice for services rendered. The statutory presumption of employment under section 200A of the LRA was rebutted by the evidence, which showed that the appellants operated through close corporations, employed their own staff, and were paid contractually agreed amounts rather than salaries. The control exercised by the company was necessary for service delivery and did not convert the relationship into employment. The arbitrator and Labour Court correctly found...

Citation
[2014] ZALAC 73
Parties
Appellant: Phaka and 19 Others; Respondent: Commissioner Ronnie Bracks; Respondent: The National Bargaining Council For The Road Freight Industry; Respondent: UTI South Africa (Pty) Ltd (Mounties Division)
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
18 December 2014
Case Number
JA 3/2014
Procedural Posture
Review Application / Appeal From Labour Court Judgment Dismissing Review of Arbitrator's Jurisdictional Ruling
Outcome
Appeal dismissed with costs.
Judges
Waglay JP, Murphy, Setiloane AJA
Legal Topics
Employee Vs Independent Contractor, Jurisdiction of Bargaining Council, Statutory Presumption of Employment, Empowerment Initiatives, Review of Arbitration Award
Labour Law Civil Procedure Employee Vs Independent Contractor Jurisdiction of Bargaining Council Statutory Presumption of Employment Empowerment Initiatives Review of Arbitration Award

Case Brief

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Parties

Phaka and 19 Others

Appellant

Commissioner Ronnie Bracks

Respondent

The National Bargaining Council For The Road Freight Industry

Respondent

UTI South Africa (Pty) Ltd (Mounties Division)

Respondent

Procedural Posture

Review Application / Appeal From Labour Court Judgment Dismissing Review of Arbitrator's Jurisdictional Ruling

Legal Issues

  1. 1 Whether the appellants were employees or independent contractors for purposes of the Labour Relations Act.
  2. 2 Whether the arbitrator and Labour Court correctly found that the bargaining council lacked jurisdiction over the dispute.
  3. 3 Whether the statutory presumption of employment under section 200A of the LRA was rebutted by the evidence.

Ratio Decidendi

The court held that the appellants were not employees but independent contractors. The contracts expressly excluded any employment relationship and required the contractors to provide their own vehicles, employ their own staff, and invoice for services rendered. The statutory presumption of employment under section 200A of the LRA was rebutted by the evidence, which showed that the appellants operated through close corporations, employed their own staff, and were paid contractually agreed amounts rather than salaries. The control exercised by the company was necessary for service delivery and did not convert the relationship into employment. The arbitrator and Labour Court correctly found...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.