Telkom SA Ltd and Others v Blom and Others (227/02) [2003] ZASCA 67; [2003] 3 All SA 130 (SCA); 2005 (5) SA 532 (SCA); (2003) 24 ILJ 1475 (SCA); [2003] 7 BLLR 638 (SCA) (31 May 2003)

Telkom SA Ltd and Others v Blom and Others (227/02) [2003] ZASCA 67; [2003] 3 All SA 130 (SCA); 2005 (5) SA 532 (SCA); (2003) 24 ILJ 1475 (SCA); [2003] 7 BLLR 638 (SCA) (31 May 2003)

The Supreme Court of Appeal held that the transfer of the Iuvatek division and its employees from Telkom to Molapo under section 197 of the Labour Relations Act constituted a termination of the respondents' employment with Telkom due to reorganization and abolition of their posts. This termination triggered the termination of their membership in the Telkom Pension Fund, entitling them to pension benefits under the Fund's statutes, specifically paragraph 4.7. The court rejected the argument that the assignment of contracts precluded entitlement to benefits, finding that the contractual relationship with Telkom ended and the respondents were no longer obliged to perform services for Telkom....

Citation
[2003] ZASCA 67
Parties
Appellant: Telkom SA Limited; Appellant: The Telkom Pension Fund; Appellant: Molapo Technology (Pty) Ltd; Respondent: P N Blom; Respondent: D R Gounden; Respondent: D D Dell; Respondent: B E O'Reilly; Respondent: S Malliah; Respondent: M L Smith; Respondent: P D Turner; Respondent: J E Enslin
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
31 May 2003
Case Number
227/02
Procedural Posture
Civil Appeal / Appeal From the Transvaal Provincial Division
Outcome
Appeal dismissed with costs.
Judges
Harms, Cameron, Mthiyane, Jones, Mlambo
Legal Topics
Transfer of Employment, Pension Benefits, Section 197 Lra, Termination of Membership, Statutory Assignment
Labour Law Civil Procedure Transfer of Employment Pension Benefits Section 197 Lra Termination of Membership Statutory Assignment

Case Brief

Summary, issues, holding and outcome

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Parties

Telkom SA Limited

Appellant

The Telkom Pension Fund

Appellant

Molapo Technology (Pty) Ltd

Appellant

P N Blom

Respondent

D R Gounden

Respondent

D D Dell

Respondent

B E O'Reilly

Respondent

S Malliah

Respondent

M L Smith

Respondent

P D Turner

Respondent

J E Enslin

Respondent

Procedural Posture

Civil Appeal / Appeal From the Transvaal Provincial Division

Legal Issues

  1. 1 Whether the transfer of employment contracts under section 197 of the Labour Relations Act constitutes termination of employment with the old employer.
  2. 2 Whether employees are entitled to payment of pension benefits upon such transfer.
  3. 3 Whether the transfer amounts to abolition of posts or reorganization of the old employer's business.

Ratio Decidendi

The Supreme Court of Appeal held that the transfer of the Iuvatek division and its employees from Telkom to Molapo under section 197 of the Labour Relations Act constituted a termination of the respondents' employment with Telkom due to reorganization and abolition of their posts. This termination triggered the termination of their membership in the Telkom Pension Fund, entitling them to pension benefits under the Fund's statutes, specifically paragraph 4.7. The court rejected the argument that the assignment of contracts precluded entitlement to benefits, finding that the contractual relationship with Telkom ended and the respondents were no longer obliged to perform services for Telkom....

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.