Solidarity and Others v Denel (SOC) Ltd (JS241/11) [2017] ZALCJHB 107 (24 March 2017)

Solidarity and Others v Denel (SOC) Ltd (JS241/11) [2017] ZALCJHB 107 (24 March 2017)

The Court found that Policy 53 of 2007 was valid, properly communicated, and applicable to all employees, including the applicants. The remuneration adjustment letters could not be read in isolation from the policy. The applicants were aware, or ought to have been aware, of the requirement to be employed at the time of bonus payout. As they had resigned before the bonus was approved and paid, they did not meet all conditions for entitlement. The exclusionary clauses in Policy 53 were binding, and no written exceptions were made. The applicants' alternative arguments failed, as the policy governed the incentive scheme and its conditions. The claim was dismissed.

Citation
[2017] ZALCJHB 107
Parties
Applicant: Solidarity; Applicant: F E Wortmann; Applicant: J P C Appelcryn; Applicant: J Van Tonder; Respondent: Denel (SOC) Ltd
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
24 March 2017
Case Number
JS241/11
Procedural Posture
Civil Judgment / Final Judgment
Outcome
The applicants' claim under section 77(3) of the Basic Conditions of Employment Act is dismissed.
Judges
E Tlhotlhalemaje
Legal Topics
Variable Pay Incentive Scheme, Contractual Terms of Employment, Unilateral Change of Conditions, Performance Management, Remuneration Disputes
Labour Law Variable Pay Incentive Scheme Contractual Terms of Employment Unilateral Change of Conditions Performance Management Remuneration Disputes

Case Brief

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Parties

Solidarity

Applicant

F E Wortmann

Applicant

J P C Appelcryn

Applicant

J Van Tonder

Applicant

Denel (SOC) Ltd

Respondent

Procedural Posture

Civil Judgment / Final Judgment

Legal Issues

  1. 1 Whether the 2007 Incentive Scheme Policy Number 53 was valid and applicable to the individual applicants.
  2. 2 Whether the individual applicants met the conditions for receipt of the variable pay incentive bonus.
  3. 3 Whether the requirement to be employed at the time of bonus payment excluded the applicants from entitlement.

Ratio Decidendi

The Court found that Policy 53 of 2007 was valid, properly communicated, and applicable to all employees, including the applicants. The remuneration adjustment letters could not be read in isolation from the policy. The applicants were aware, or ought to have been aware, of the requirement to be employed at the time of bonus payout. As they had resigned before the bonus was approved and paid, they did not meet all conditions for entitlement. The exclusionary clauses in Policy 53 were binding, and no written exceptions were made. The applicants' alternative arguments failed, as the policy governed the incentive scheme and its conditions. The claim was dismissed.

Court Disposition

The applicants' claim under section 77(3) of the Basic Conditions of Employment Act is dismissed.

Orders

  • The applicants' claim is dismissed.
  • There is no order as to costs.