Solidarity obo Members v Sahara African Living (Pty) Ltd (JS829/21) [2024] ZALCJHB 166 (17 April 2024)

Solidarity obo Members v Sahara African Living (Pty) Ltd (JS829/21) [2024] ZALCJHB 166 (17 April 2024)

The court found that the respondent breached the employment contracts by unilaterally reducing salaries and implementing lay-offs without consultation or consent, in violation of the non-variation clause and section 34 of the BCEA. The employees did not tacitly consent or acquiesce to the changes, as their conduct...

Source-derived case information.

Citation
[2024] ZALCJHB 166
Parties
Applicant: Solidarity obo Members; Respondent: Sahara African Living (Pty) Ltd
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
17 April 2024
Case Number
JS829/21
Procedural Posture
Labour Unfair Dismissal / Trial Judgment
Outcome
The company breached the employment contracts and the dismissals were procedurally and substantively unfair. Compensation and payments are ordered for the employees.
Judges
M Makhura
Legal Topics
Unilateral Change to Terms, Unfair Dismissal, Consultation Requirements, Compensation for Breach, Notice Pay, Covid19 Employment Measures
Labour Law Unilateral Change to Terms Unfair Dismissal Consultation Requirements Compensation for Breach Notice Pay Covid19 Employment Measures

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Parties

Solidarity obo Members

Applicant

Sahara African Living (Pty) Ltd

Respondent

Procedural Posture

Labour Unfair Dismissal / Trial Judgment

Legal Issues

  1. 1 Whether the respondent breached the employment contracts by unilaterally reducing salaries and implementing lay-offs.
  2. 2 Whether the dismissal of the employees for operational requirements was procedurally and substantively fair.
  3. 3 What is the appropriate remedy for breach of contract and unfair dismissal.

Ratio Decidendi

The court found that the respondent breached the employment contracts by unilaterally reducing salaries and implementing lay-offs without consultation or consent, in violation of the non-variation clause and section 34 of the BCEA. The employees did not tacitly consent or acquiesce to the changes, as their conduct did not demonstrate clear acceptance. The retrenchment process was procedurally and substantively unfair due to the respondent's failure to consult with Solidarity and the affected employees, as required by section 189 of the LRA. The company deprived the employees of the opportunity to discuss alternatives, selection criteria, and severance packages. The court held that the...

Court Disposition

The company breached the employment contracts and the dismissals were procedurally and substantively unfair. Compensation and payments are ordered for the employees.

Orders

  • The dismissal of the individual applicants by the company is declared substantively and procedurally unfair.
  • The company is ordered to pay each of the individual applicants: (a) 3 months’ compensation for breach of contract at the off-tour salary rate; (b) 8 months’ compensation for unfair dismissal at the off-tour salary rate; (c) the shortfall in salaries for March 2020; (d) four weeks’ notice pay at the off-tour salary...