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South Africa Judgment

Labour Court

Polifin Ltd v Sibeko N.O and Another (J1569/98) [1998] ZALC 93 (29 October 1998)

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Source document

01

Holding and result

The Labour Court held that the Commissioner exceeded his powers by ordering preferential re-employment for Mr Yacoob after finding that his dismissal was fair. Section 193 of the Labour Relations Act only permits re-employment as a remedy where a dismissal is found to be unfair. Since the Commissioner concluded that the dismissal was fair, he had no authority to order re-employment. The application to set aside paragraph (b) of the award was found to be within the prescribed time, and if not, condonation was granted. Accordingly, paragraph (b) of the award was set aside and costs were awarded against the second respondent.

Court disposition

Paragraph (b) of the arbitration award is set aside; costs awarded against the second respondent.

Orders

  • Paragraph (b) of the first respondent’s award of 8 September 1997 is set aside.
  • The costs of this application are to be paid by the second respondent.

02

Material facts

Parties

Polifin Ltd

Applicant Counsel: Ms Naidoo of Fourie, Stockenström & Fismer Inc

Z Sibeko NO

Respondent Counsel: Zehir Omar Attorney

A M Yacoob

Respondent Counsel: Zehir Omar Attorney

03

Procedural history

  1. Posture

    Review Application / Application to Set Aside Part of Arbitration Award

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that paragraph (b) of the arbitration award, which ordered preferential re-employment of Mr Yacoob should a vacancy arise, was ultra vires as the Commissioner had found the dismissal to be fair. The applicant further submitted that the Commissioner had no power under section 193 of the Labour Relations Act to order re-employment in the absence of a finding of unfair dismissal. The applicant also contended that the review application was brought within the statutory six-week period, or alternatively, sought condonation for any delay.
Respondent
The respondent, represented by Miss Naidoo, contended that the application to set aside the award was out of time and should not be entertained. On the merits, the respondent maintained that the Commissioner was entitled to make the order for preferential re-employment based on the circumstances and the medical report considered.

05

Court’s reasoning

  1. 01

    Section 193 of the Labour Relations Act 66 of 1995

    A Commissioner may only order re-employment as a remedy for unfair dismissal; if the dismissal is found to be fair, no such remedy is available.

  2. 02

    Section 145 of the Labour Relations Act 66 of 1995

    Review applications against arbitration awards must be brought within six weeks of the award unless condonation is granted for late filing.

06

Ratio, limits and disposition

Ratio decidendi

The Labour Court held that the Commissioner exceeded his powers by ordering preferential re-employment for Mr Yacoob after finding that his dismissal was fair. Section 193 of the Labour Relations Act only permits re-employment as a remedy where a dismissal is found to be unfair. Since the Commissioner concluded that the dismissal was fair, he had no authority to order re-employment. The application to set aside paragraph (b) of the award was found to be within the prescribed time, and if not, condonation was granted. Accordingly, paragraph (b) of the award was set aside and costs were awarded against the second respondent.

Obiter and limits

  • The court noted that the Commissioner acted beyond his statutory powers by granting relief not contemplated by the Labour Relations Act.
  • The court observed that the procedural requirements for review applications under section 145 must be strictly adhered to, but condonation may be granted in appropriate circumstances.

Court disposition

Paragraph (b) of the arbitration award is set aside; costs awarded against the second respondent.

  • Paragraph (b) of the first respondent’s award of 8 September 1997 is set aside.
  • The costs of this application are to be paid by the second respondent.

Source and reliance status

Labour Court

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Judgment text

The complete available source text.

Source document

Labour Court

Judgment

[1998] ZALC 93

IN

THE LABOUR COURT OF SOUTH AFRICA

HELD

AT JOHANNESBURG

Case Number: J1569/98

In the matter between

Polifin Ltd Applicant

and

Z Sibeko NO 1st Respondent

A M Yacoob 2nd Respondent

JUDGMENT

LANDMAN J

Polifin Ltd employed Mr Ahmed Yacoob, the second respondent, as a chemist and, for reasons that are not presently material but which relate to his health, decided to terminate his services. Mr Yacoob was dissatisified with this and referred a dispute to the CCMA.

Mr Sibeko, a Commissioner, arbitrated the dispute and made an award which reads as follows:

(a) Polifin did not act unfairly both procedurally and substantively, when terminating the services of Mr Yacoob - it did what it reasonably could under the circumstances; (b) Should any vacancy arise in the company Mr Yacoob should be re-employed and be given preference, this is because I took account of the report by Dr Renderee dated 30/05/97. Thereafter, Mr Yacoob approached the High Court to review the award. This application was withdrawn and a further application was brought in this court, under Case Number J444/98. An order was apparently granted to the effect that Mr Yacoob should be heard before the award was amended by the Commissioner. I presume that he was in fact heard and that some amendment was made. The matter is now back in this court.

(a) Polifin did not act unfairly both procedurally and substantively, when terminating the services of Mr Yacoob - it did what it reasonably could under the circumstances;

(b) Should any vacancy arise in the company Mr Yacoob should be re-employed and be given preference, this is because I took account of the report by Dr Renderee dated 30/05/97.

Thereafter, Mr Yacoob approached the High Court to review the award. This application was withdrawn and a further application was brought in this court, under Case Number J444/98. An order was apparently granted to the effect that Mr Yacoob should be heard before the award was amended by the Commissioner. I presume that he was in fact heard and that some amendment was made. The matter is now back in this court.

Polifin have filed an application asking that paragraph (b) of the award dated 8 September 1997 be set aside. Miss Naidoo, who appeared on behalf of Mr Yacoob, has submitted that the present application is out of time. The present application is brought in terms of section 145 of the Labour Relations Act 66 of 1995 (“the Act”) and it must therefore be brought within six weeks of the date of the award unless condonation has been granted. In this particular case, having regard to the particular circumstances, I am satisfied that the application is brought within time. If it is not within time, I condone the late application. This brings me to the merits. This dispute was about an alleged unfair dismissal. It was found by the Commissioner, and this is common cause, that the dismissal was fair. Notwithstanding this finding, the Commissioner went on to order that re-employment take place if a position were to become available. In my opinion that was not a course of action available to the Commissioner. Section 193 of the Act, which deals with remedies for unfair dismissal, permits an order for re-employment on a finding that the dismissal is unfair. Where a Commissioner comes to the conclusion that the dismissal is fair, that is the end of the matter. The Commissioner has no power to order re-employment.

Polifin have filed an application asking that paragraph (b) of the award dated 8 September 1997 be set aside. Miss Naidoo, who appeared on behalf of Mr Yacoob, has submitted that the present application is out of time. The present application is brought in terms of section 145 of the Labour Relations Act 66 of 1995 (“the Act”) and it must therefore be brought within six weeks of the date of the award unless condonation has been granted. In this particular case, having regard to the particular circumstances, I am satisfied that the application is brought within time. If it is not within time, I condone the late application.

This brings me to the merits.

This dispute was about an alleged unfair dismissal. It was found by the Commissioner, and this is common cause, that the dismissal was fair. Notwithstanding this finding, the Commissioner went on to order that re-employment take place if a position were to become available. In my opinion that was not a course of action available to the Commissioner. Section 193 of the Act, which deals with remedies for unfair dismissal, permits an order for re-employment on a finding that the dismissal is unfair. Where a Commissioner comes to the conclusion that the dismissal is fair, that is the end of the matter. The Commissioner has no power to order re-employment.

In the premises, I am satisfied that the award made by the first respondent was in excess of his powers and consequently I grant an order setting aside paragraph (b) of the first respondent’s award of 8 September 1997, and order that the costs of this application be paid by the second respondent.

A A LANDMAN Judge of the Labour Court DATE OF HEARING: 29 October 1998 DATE OF JUDGMENT: 29 October 1998 For the applicant: Ms Naidoo of Fourie, Stockenström & Fismer Inc For the respondent: Zehir Omar Attorney

In the premises, I am satisfied that the award made by the first respondent was in excess of his powers and consequently I grant an order setting aside paragraph (b) of the first respondent’s award of 8 September 1997, and order that the costs of this application be paid by the second respondent.

A A LANDMAN

Judge of the Labour Court

DATE OF HEARING: 29 October 1998

DATE OF JUDGMENT: 29 October 1998

For the applicant: Ms Naidoo of Fourie, Stockenström & Fismer Inc

For the respondent: Zehir Omar Attorney

3

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Authorities

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Cases, legislation, regulations, and constitutional provisions identified in the available record.

Labour Relations Act 66 of 1995

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