Schroeder and Another v Pharmacare Ltd t/a Aspen Pharmacare (P341/11) [2014] ZALCPE 37; [2015] 2 BLLR 168 (LC); (2015) 36 ILJ 1349 (LC) (26 November 2014)

Schroeder and Another v Pharmacare Ltd t/a Aspen Pharmacare (P341/11) [2014] ZALCPE 37; [2015] 2 BLLR 168 (LC); (2015) 36 ILJ 1349 (LC) (26 November 2014)

The Labour Court lacks jurisdiction to set aside a mutual termination settlement agreement in the context of a termination of employment where the applicants have not established a statutory basis for such jurisdiction in their pleadings. Section 158(2) does not empower the court to remit a matter to arbitration where there is no preliminary jurisdiction and where valid jurisdictional rulings by arbitrators remain in place. The applicants' referral must be dismissed for want of jurisdiction, and no order for costs is made due to the individual status of the applicants and the manner in which the jurisdictional issue was raised and handled.

Citation
[2014] ZALCPE 37
Parties
Applicant: Brian Schroeder; Applicant: Graham Sutherland; Respondent: Pharmacare Ltd t/a Aspen Pharmacare
Court
Labour Court Port Elizabeth
Jurisdiction
South Africa
Judgment Date
26 November 2014
Case Number
P341/11
Procedural Posture
Review Application / Judgment on Jurisdiction and Referral
Outcome
Referral dismissed for want of jurisdiction. No order as to costs.
Judges
Van Niekerk
Legal Topics
Jurisdiction of Labour Court, Mutual Termination Agreement, Unfair Dismissal, Remittal to Arbitration, Settlement Agreement Validity
Labour Law Jurisdiction of Labour Court Mutual Termination Agreement Unfair Dismissal Remittal to Arbitration Settlement Agreement Validity

Case Brief

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Parties

Brian Schroeder

Applicant

Graham Sutherland

Applicant

Pharmacare Ltd t/a Aspen Pharmacare

Respondent

Procedural Posture

Review Application / Judgment on Jurisdiction and Referral

Legal Issues

  1. 1 Does the Labour Court have jurisdiction to set aside a mutual termination settlement agreement between employer and employee?
  2. 2 Can the court remit the dispute to arbitration under section 158(2) of the LRA?
  3. 3 Is the referral by the applicants properly before the Labour Court given prior jurisdictional rulings by the bargaining council?

Ratio Decidendi

The Labour Court lacks jurisdiction to set aside a mutual termination settlement agreement in the context of a termination of employment where the applicants have not established a statutory basis for such jurisdiction in their pleadings. Section 158(2) does not empower the court to remit a matter to arbitration where there is no preliminary jurisdiction and where valid jurisdictional rulings by arbitrators remain in place. The applicants' referral must be dismissed for want of jurisdiction, and no order for costs is made due to the individual status of the applicants and the manner in which the jurisdictional issue was raised and handled.

Court Disposition

Referral dismissed for want of jurisdiction. No order as to costs.

Orders

  • The applicants' referral is dismissed.
  • No order as to costs.