Phaka and Others v Bracks and Others (JR1171/11) [2013] ZALCJHB 91 (29 May 2013)

Phaka and Others v Bracks and Others (JR1171/11) [2013] ZALCJHB 91 (29 May 2013)

The court found that, although certain factors in the applicants' contracts and working arrangements triggered the presumption of employment under section 200A of the Labour Relations Act, the third respondent successfully rebutted this presumption. The applicants operated under fixed-term contracts as independent contractors, were able to employ their own staff, and received payments structured as fees and reimbursements rather than salaries. The contracts did not provide for employment benefits, and the applicants acted through close corporations. The court held that the true nature of the relationship, viewed holistically and in light of the evidence, was that of independent...

Citation
[2013] ZALCJHB 91
Parties
Applicant: Sidney Vusimuzi Tukula; Applicant: Lazarus Ditshego; Applicant: June Maximillan Padi; Applicant: Benjamin Sipho Maloma; Applicant: Enock Maredi; Applicant: Samuel Hlohlongwane; Applicant: Patrick Mathopa Phaka; Applicant: Joseph Mokgalo; Applicant: Patrick Selogane Magampa; Respondent: Commissioner Ronnie Bracks; Respondent: National Bargaining Council for Road Freight Industry (NBCRFI); Respondent: UTI South Africa (Pty) Limited (Mounties Division)
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
29 May 2013
Case Number
JR1171/11
Procedural Posture
Review Application / Judgment on Review of Arbitration Award
Outcome
Application to review the arbitration award is dismissed.
Judges
Bleazard
Legal Topics
Employee Vs Independent Contractor, Jurisdiction of Bargaining Council, Presumption of Employment, Review of Arbitration Award
Labour Law Civil Procedure Employee Vs Independent Contractor Jurisdiction of Bargaining Council Presumption of Employment Review of Arbitration Award

Case Brief

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Parties

Sidney Vusimuzi Tukula

Applicant

Lazarus Ditshego

Applicant

June Maximillan Padi

Applicant

Benjamin Sipho Maloma

Applicant

Enock Maredi

Applicant

Samuel Hlohlongwane

Applicant

Patrick Mathopa Phaka

Applicant

Joseph Mokgalo

Applicant

Patrick Selogane Magampa

Applicant

Commissioner Ronnie Bracks

Respondent

National Bargaining Council for Road Freight Industry (NBCRFI)

Respondent

UTI South Africa (Pty) Limited (Mounties Division)

Respondent

Procedural Posture

Review Application / Judgment on Review of Arbitration Award

Legal Issues

  1. 1 Whether the applicants were employees or independent contractors under the Labour Relations Act.
  2. 2 Whether the presumption of employment in section 200A of the Labour Relations Act applies and is rebutted.
  3. 3 Whether the bargaining council and arbitrator had jurisdiction to entertain the dispute.

Ratio Decidendi

The court found that, although certain factors in the applicants' contracts and working arrangements triggered the presumption of employment under section 200A of the Labour Relations Act, the third respondent successfully rebutted this presumption. The applicants operated under fixed-term contracts as independent contractors, were able to employ their own staff, and received payments structured as fees and reimbursements rather than salaries. The contracts did not provide for employment benefits, and the applicants acted through close corporations. The court held that the true nature of the relationship, viewed holistically and in light of the evidence, was that of independent...

Court Disposition

Application to review the arbitration award is dismissed.

Orders

  • The application to review the award of the first respondent under consolidated case numbers D1207 and D1219/JHB/9259/05 is dismissed.
  • There is no order as to costs.