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South Africa Judgment

Labour Court

Sibeko v Commission for Conciliation Mediation and Arbitration and Others (J5978/00) [2001] ZALC 17 (2 February 2001)

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Source document

01

Holding and result

The court found that the applicant was paid a higher salary in error, and the respondent was entitled to adjust the salary to reflect the agreed contractual amount, even without the applicant's consent, as permitted by the Basic Conditions of Employment Act. The applicant failed to establish a case for urgent relief or entitlement to the higher salary. The relief sought was overly broad and would unjustifiably prevent the respondent from making legitimate salary adjustments. Accordingly, the application was dismissed with costs.

Court disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.

02

Material facts

Parties

Z S Sibeko

Applicant Counsel: In person

Commission for Conciliation Mediation and Arbitration

Respondent Counsel: Bowman, Gilfillan Att.

Thandi Orleyn

Respondent

Seoka Matlhabe

Respondent

Head of Human Resources Department (Payroll)

Respondent

Sue King

Respondent

Amounts and remedies

  • Annual Salary Under Previous Contract: ZAR 231,000
  • Annual Salary Under New Contract: ZAR 200,000
  • Amount Paid in Error Over Five Months: ZAR 245,710.33

03

Procedural history

  1. Posture

    Urgent Application / Application for Urgent Interdict

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that the respondent should be interdicted from interfering with his salary, contending that any deduction would be unlawful without his consent under the Basic Conditions of Employment Act. He demanded reasons from the respondent as to why he should not be paid the higher amount and declined to provide reasons for entitlement to the higher salary.
Respondent
The respondent contended that the applicant was paid a higher salary in error, exceeding even the highest scale for his position. The Board had previously notified the applicant that he was not entitled to a higher salary. The respondent argued that, in cases of overpayment, the employer is entitled to adjust the salary to reflect the contractual agreement, even without the employee's consent.

05

Court’s reasoning

  1. 01

    Basic Conditions of Employment Act

    An employer may not deduct amounts from an employee's salary without consent, except where overpayment occurred in error; in such cases, the employer may adjust the salary to reflect the contractual agreement without consent.

  2. 02

    Sibeko v Commission for Conciliation Mediation and Arbitration and Others (J5978/00) [2001] ZALC 17

    Relief in the form of a wide interdict preventing any salary adjustment is not justified where the applicant has not made out a case for urgency or entitlement.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the applicant was paid a higher salary in error, and the respondent was entitled to adjust the salary to reflect the agreed contractual amount, even without the applicant's consent, as permitted by the Basic Conditions of Employment Act. The applicant failed to establish a case for urgent relief or entitlement to the higher salary. The relief sought was overly broad and would unjustifiably prevent the respondent from making legitimate salary adjustments. Accordingly, the application was dismissed with costs.

Obiter and limits

  • Employers should ensure clear communication regarding salary adjustments to avoid disputes.
  • Employees have a duty to report errors in remuneration to their employers.

Court disposition

Application dismissed with costs.

  • The application is dismissed with costs.

Source and reliance status

Labour Court

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Judgment text

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Source document

Labour Court

Judgment

[2001] ZALC 17

JUDGMENT

3 J5978/00-HVDM

Sneller Verbatim/HVDM

IN THE

LABOUR COURT OF SOUTH AFRICA

BRAAMFONTEIN CASE NO: J5978/00

2001-02-02

In the matter between

Z S SIBEKO Applicant

and

COMMISSION

OF CONCILIATION

MEDIATION AND ARBITRATION 1ST Respondent

THANDI ORLEYN 2nd Respondent

SEOKA MATLHABE 3rd Respondent

HEAD OF

HUMAN RESOURCES DEPARTMENT

(PAYROLL) 4th Respondent

SUE KING 5th Respondent

________________

J U D G M E

N T

REVELAS J:

The applicant had been in the employ of the first respondent as a fulltime commissioner on a fixed term contract which had expired.

Under that contract he earned R231 000 per annum. As his contract was about to expire the respondent on 20 July 2000 made an offer for a further fixed term contract with effect from 1 July 2000. The salary package in terms of that contract was R200 000. The applicant would earn less than he had previously earned because he was now employed as a level A, on a lower scale, since there had been a restructure of the levels of commissioners. Previously there were five levels and thereafter the Board of the respondent amended the structure after consultation with the commissioners employed by the respondent.

The respondent signed the contract but made submissions to the Board to the effect that he should be remunerated at a higher salary. The board notified him that this was not possible. This was according to the affidavit of the managing director of the respondent, which was not disputed by the applicant.

Notwithstanding the fact that the Board had stated that the applicant was not entitled to a higher salary, he was then for a period of five months paid the sum of R245 710,33. It is noteworthy that level A higher scale commissioners do not even earn this amount.

Clearly, on the papers, and that was also contended by the respondent, the applicant was paid this higher salary in error.

The respondent then notified the applicant in writing that he had been paid this amount in error. It was pointed out to him that the respondent was disappointed that he had not himself brought this error to the attention of the respondent. The applicant was also informed that the amount paid in error would be deducted from his salary. He was also requested to furnish reasons at a later stage as to why he felt that he was entitled to the higher amount. This he declined to do and demanded an explanation from the respondent instead to advance reasons why he should not be paid the higher amount.

It is indeed so, that in terms of the Basic Conditions of Employment Act, an employer may not deduct amounts from the salary or remuneration of an employee without the employee's consent. Where an employee was however overpaid in error, the employer is entitled to adjust the income so as to reflect what was agreed upon between the parties in the contract of employment, without the employee’s consent.

The applicant seeks relief to the effect "that the respondent be interdicted from interfering" with his salary. This is a very wide form of relief and would also mean that the respondent would never be entitled to adjust the applicant's salary.

The applicant has made out no case which entitles him to the relief he seeks on an urgent basis.

Consequently the application is dismissed with costs. ON BEHALF OF Z S SIBEKO: In person ON BEHALF OF C.C.M.A.: Bowman, Gilfillan Att. ____ E. Revelas

The respondent then notified the applicant in writing that he had been paid this amount in error. It was pointed out to him that the respondent was disappointed that he had not himself brought this error to the attention of the respondent. The applicant was also informed that the amount paid in error would be deducted from his salary. He was also requested to furnish reasons at a later stage as to why he felt that he was entitled to the higher amount. This he declined to do and demanded an explanation from the respondent instead to advance reasons why he should not be paid the higher amount.

It is indeed so, that in terms of the Basic Conditions of Employment Act, an employer may not deduct amounts from the salary or remuneration of an employee without the employee's consent. Where an employee was however overpaid in error, the employer is entitled to adjust the income so as to reflect what was agreed upon between the parties in the contract of employment, without the employee’s consent.

The applicant seeks relief to the effect "that the respondent be interdicted from interfering" with his salary. This is a very wide form of relief and would also mean that the respondent would never be entitled to adjust the applicant's salary.

The applicant has made out no case which entitles him to the relief he seeks on an urgent basis.

Consequently the application is dismissed with costs.

ON BEHALF OF Z S SIBEKO: In person

ON BEHALF OF C.C.M.A.: Bowman, Gilfillan Att.

____

E. Revelas

3

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Sibeko v Commission for Conciliation Mediation and Arbitration and Others (J5978/00) [2001] ZALC 17

Case cited

Basic Conditions of Employment Act

Legislation

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