Snyders v Fosbel Africa (Pty) Ltd (J617/2015) [2016] ZALCJHB 382 (7 October 2016)

Snyders v Fosbel Africa (Pty) Ltd (J617/2015) [2016] ZALCJHB 382 (7 October 2016)

The Labour Court found that the mutual termination agreement did not have as its genesis a dispute capable of referral to arbitration or adjudication under the Labour Relations Act. The agreement was reached in circumstances where the applicant made himself available for retrenchment and the respondent elected to retrench him, without any dispute regarding the fairness of the retrenchment. The statutory requirements under section 158(1)(c) read with section 158(1A) were not met, as the agreement did not settle a pre-existing dispute. Consequently, the Labour Court lacked jurisdiction to make the agreement an order of court. However, both parties consented to an order requiring the...

Citation
[2016] ZALCJHB 382
Parties
Applicant: Petrus Casparus Snyders; Respondent: Fosbel Africa (Pty) Ltd
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
7 October 2016
Case Number
J617/2015
Procedural Posture
Urgent Application / Application to Make Settlement Agreement an Order of Court Under S 158(1)(c) LRA
Outcome
The application to make the settlement agreement an order of court is dismissed. The respondent is ordered to pay statutory amounts due to the applicant within 21 days. No order as to costs.
Judges
Bailey
Legal Topics
Settlement Agreement, Jurisdiction of Labour Court, Retrenchment, Statutory Payments
Labour Law Civil Procedure Settlement Agreement Jurisdiction of Labour Court Retrenchment Statutory Payments

Case Brief

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Parties

Petrus Casparus Snyders

Applicant

Fosbel Africa (Pty) Ltd

Respondent

Procedural Posture

Urgent Application / Application to Make Settlement Agreement an Order of Court Under S 158(1)(c) LRA

Legal Issues

  1. 1 Whether the mutual termination agreement qualifies as a settlement agreement capable of being made an order of court under section 158(1)(c) of the Labour Relations Act.
  2. 2 Whether the Labour Court has jurisdiction to make the agreement an order of court.
  3. 3 Whether the respondent is obliged to pay statutory amounts to the applicant.

Ratio Decidendi

The Labour Court found that the mutual termination agreement did not have as its genesis a dispute capable of referral to arbitration or adjudication under the Labour Relations Act. The agreement was reached in circumstances where the applicant made himself available for retrenchment and the respondent elected to retrench him, without any dispute regarding the fairness of the retrenchment. The statutory requirements under section 158(1)(c) read with section 158(1A) were not met, as the agreement did not settle a pre-existing dispute. Consequently, the Labour Court lacked jurisdiction to make the agreement an order of court. However, both parties consented to an order requiring the...

Court Disposition

The application to make the settlement agreement an order of court is dismissed. The respondent is ordered to pay statutory amounts due to the applicant within 21 days. No order as to costs.

Orders

  • The section 158(1)(c) application is dismissed.
  • The respondent must within 21 days of the date of this order pay to the applicant: (i) the three months' notice period in lieu of notice less statutory deductions and excluding both the $3,300 allowance and a pro rata portion of the 13th cheque; (ii) a voluntary retrenchment severance package equal to one week's...