South African Tourism v Monare and Others (JR2298/11) [2014] ZALCJHB 100; (2014) 35 ILJ 2280 (LC (31 March 2014)

South African Tourism v Monare and Others (JR2298/11) [2014] ZALCJHB 100; (2014) 35 ILJ 2280 (LC (31 March 2014)

The court held that the Labour Relations Act does not have extraterritorial application in circumstances where the employment relationship, contract conclusion, place of work, payment, and disciplinary proceedings all occurred outside South Africa. The applicant’s London office operated as a distinct undertaking...

Source-derived case information.

Citation
[2014] ZALCJHB 100
Parties
Applicant: South African Tourism; Respondent: Tebogo Brian Monare; Respondent: The Commission for Conciliation Mediation and Arbitration; Respondent: Commissioner Mooi NO
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
31 March 2014
Case Number
JR2298/11
Procedural Posture
Review Application / Judgment on Review of Arbitration Award
Outcome
The arbitration award issued by the third respondent is reviewed and set aside.
Judges
Van Niekerk
Legal Topics
Territorial Jurisdiction, Unfair Dismissal, Arbitration Award Review, Employment Contract Extraterritoriality
Labour Law Civil Procedure Territorial Jurisdiction Unfair Dismissal Arbitration Award Review Employment Contract Extraterritoriality

Source-derived case record

Summary, issues, holding and outcome

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Parties

South African Tourism

Applicant

Tebogo Brian Monare

Respondent

The Commission for Conciliation Mediation and Arbitration

Respondent

Commissioner Mooi NO

Respondent

Procedural Posture

Review Application / Judgment on Review of Arbitration Award

Legal Issues

  1. 1 Does the Labour Relations Act (LRA) have territorial application to an employment relationship where the employee worked exclusively outside South Africa?
  2. 2 Did the CCMA have jurisdiction to arbitrate the unfair dismissal dispute in these circumstances?
  3. 3 Was the commissioner’s award reasonable given the facts and law?

Ratio Decidendi

The court held that the Labour Relations Act does not have extraterritorial application in circumstances where the employment relationship, contract conclusion, place of work, payment, and disciplinary proceedings all occurred outside South Africa. The applicant’s London office operated as a distinct undertaking with its own systems, staff, and controls, and the first respondent was recruited and employed exclusively overseas. The CCMA, as a statutory body, cannot assume jurisdiction over disputes arising from such employment relationships. The commissioner’s award was therefore reviewed and set aside, as the CCMA had no jurisdiction to arbitrate the dispute.

Court Disposition

The arbitration award issued by the third respondent is reviewed and set aside.

Orders

  • The arbitration award issued by the third respondent on 1 September 2011 under case number GATW 13517/10 is reviewed and set aside.
  • No order as to costs.