SAFPU and Others v Free State Stars Football Club (Pty) Ltd (JA22/2016) [2017] ZALAC 16; (2017) 38 ILJ 1111 (LAC) (21 February 2017)

SAFPU and Others v Free State Stars Football Club (Pty) Ltd (JA22/2016) [2017] ZALAC 16; (2017) 38 ILJ 1111 (LAC) (21 February 2017)

The Labour Appeal Court found that the Labour Court misdirected itself by unduly limiting the factors relevant to the exercise of its discretion and failing to appreciate the exceptional circumstances present. The dispute resolution mechanism under the NSL constitution imposed significant financial burdens on the employees, including high referral and appeal fees, which were not present in the Labour Court. The contracts were contracts of adhesion, and the dispute involved retrenchment of fixed-term employees, a matter for which the Labour Court was more suitable. The combination of these factors constituted exceptional circumstances justifying interference with the Labour Court's...

Citation
[2017] ZALAC 16
Parties
Appellant: SAFPU; Appellant: HU Toromba; Appellant: LM Malek; Appellant: BS Senokoane; Respondent: Free State Stars Football Club (Pty) Ltd
Court
Labour Appeal Court
Jurisdiction
South Africa
Judgment Date
21 February 2017
Case Number
JA22/2016
Procedural Posture
Civil Appeal / Appeal From Labour Court Judgment Staying Proceedings and Directing Referral to Contractual Dispute Resolution Forum.
Outcome
Appeal upheld. The Labour Court's order staying proceedings and directing referral to the Dispute Resolution Chamber is set aside.
Judges
Landman, Savage, Phatshoane
Legal Topics
Fixed Term Contracts, Arbitration Agreements, Jurisdiction of Labour Court, Exceptional Circumstances, Unfair Dismissal, Costs of Dispute Resolution
Labour Law Civil Procedure Fixed Term Contracts Arbitration Agreements Jurisdiction of Labour Court Exceptional Circumstances Unfair Dismissal Costs of Dispute Resolution

Case Brief

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Parties

SAFPU

Appellant

HU Toromba

Appellant

LM Malek

Appellant

BS Senokoane

Appellant

Free State Stars Football Club (Pty) Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Labour Court Judgment Staying Proceedings and Directing Referral to Contractual Dispute Resolution Forum.

Legal Issues

  1. 1 Whether the Labour Court correctly exercised its discretion in staying proceedings and directing referral to the Dispute Resolution Chamber under the employment contracts.
  2. 2 Whether exceptional circumstances existed to justify the Labour Court retaining jurisdiction over the dispute despite the contractual arbitration clause.
  3. 3 Whether the dispute resolution mechanism under the NSL constitution and rules was unduly onerous or prejudicial to the employees.

Ratio Decidendi

The Labour Appeal Court found that the Labour Court misdirected itself by unduly limiting the factors relevant to the exercise of its discretion and failing to appreciate the exceptional circumstances present. The dispute resolution mechanism under the NSL constitution imposed significant financial burdens on the employees, including high referral and appeal fees, which were not present in the Labour Court. The contracts were contracts of adhesion, and the dispute involved retrenchment of fixed-term employees, a matter for which the Labour Court was more suitable. The combination of these factors constituted exceptional circumstances justifying interference with the Labour Court's...

Court Disposition

Appeal upheld. The Labour Court's order staying proceedings and directing referral to the Dispute Resolution Chamber is set aside.

Orders

  • The appeal is upheld.
  • Paragraph 1 of the order of the court a quo dated 24 November 2015 is set aside and replaced with: 'The point in limine is dismissed. The parties are to enrol the matter for trial after holding a pre-trial conference.'