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South Africa Judgment

Labour Court Johannesburg

Temo v Van Niekerk and Others (JR1772/13) [2015] ZALCJHB 160 (21 May 2015)

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Source document

01

Holding and result

The court found that the Commissioner misconceived the law by concluding that the applicant's refusal to sign a written employment contract justified dismissal. Section 29 of the BCEA does not require a signed written contract, and the employment relationship had existed for three years based on an oral agreement. The absence of a signed contract does not deprive an employee of rights under the Labour Relations Act, nor does it constitute a valid ground for dismissal under section 188 of the LRA. The Commissioner’s decision failed the standard of reasonableness and was therefore reviewable. Due to insufficient material to determine the matter, the award was set aside and the dispute remitted to the CCMA for rehearing before a different Commissioner.

Court disposition

Arbitration award reviewed and set aside; matter remitted to CCMA before a different Commissioner.

Orders

  • The arbitration award made under case number GATW 3900-13 is reviewed and set aside.
  • The matter is remitted to the second respondent before a Commissioner other than the third respondent.

02

Material facts

Parties

Temo K.A

Applicant

Van Niekerk M

Respondent

Commissioner for Conciliation Mediation and Arbitration

Respondent

Phalane T N.O.

Respondent

03

Procedural history

  1. Posture

    Review Application / Judgment on Review and Condonation

04

Questions and positions

Legal issues

Party arguments

Applicant
The applicant argued that there was no legal obligation to sign the draft employment contract, as the employment relationship had existed for three years based on an oral agreement. She contended that the Commissioner erred in finding that the Basic Conditions of Employment Act required a written contract and failed to consider that her refusal to sign did not constitute a valid ground for dismissal.
Respondent
The respondents did not oppose the review application. At arbitration, the first respondent maintained that the applicant's refusal to sign the employment contract justified dismissal, and the Commissioner accepted this reasoning, finding the dismissal both procedurally and substantively fair.

05

Court’s reasoning

  1. 01

    Basic Conditions of Employment Act 75 of 1997

    Section 29 of the BCEA requires an employer to provide written particulars of employment but does not require a signed written contract for the employment relationship to exist.

  2. 02

    Labour Relations Act 66 of 1995, section 185

    An oral employment contract provides employees with the same rights under the Labour Relations Act as a written contract, including protection against unfair dismissal and unfair labour practices.

  3. 03

    Labour Relations Act 66 of 1995, section 188

    A dismissal is unfair if the employer cannot prove a fair reason related to conduct, capacity, or operational requirements, and if the dismissal was not effected in accordance with a fair procedure.

  4. 04

    Sidumo and Another v Rustenburg Platinum Mines Ltd and Others (2007) 28 ILJ 2405 (CC)

    The standard of reasonableness for review of arbitration awards is set out by the Constitutional Court in Sidumo and Another v Rustenburg Platinum Mines Ltd and Others.

06

Ratio, limits and disposition

Ratio decidendi

The court found that the Commissioner misconceived the law by concluding that the applicant's refusal to sign a written employment contract justified dismissal. Section 29 of the BCEA does not require a signed written contract, and the employment relationship had existed for three years based on an oral agreement. The absence of a signed contract does not deprive an employee of rights under the Labour Relations Act, nor does it constitute a valid ground for dismissal under section 188 of the LRA. The Commissioner’s decision failed the standard of reasonableness and was therefore reviewable. Due to insufficient material to determine the matter, the award was set aside and the dispute remitted to the CCMA for rehearing before a different Commissioner.

Obiter and limits

  • The misconception that the BCEA requires a signed written employment contract is widespread but incorrect.
  • An employee employed under an oral agreement enjoys the same statutory protections as one employed under a written contract.

Court disposition

Arbitration award reviewed and set aside; matter remitted to CCMA before a different Commissioner.

  • The arbitration award made under case number GATW 3900-13 is reviewed and set aside.
  • The matter is remitted to the second respondent before a Commissioner other than the third respondent.

Source and reliance status

Labour Court Johannesburg

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Judgment reading view

Judgment text

The complete available source text.

Source document

Labour Court Johannesburg

Judgment

[2015] ZALCJHB 160

THE LABOUR COURT OF SOUTH AFRICA,

JOHANNESBURG

JUDGMENT

Not Reportable

Case no: JR 1772/13

In the matter between:

TEMO K.A

Applicant

and

VAN NIEKERK M

First Respondent

COMMISSIONER FOR CONCILIATION

MEDIATION AND

ARBITRATION

Second Respondent

PHALANE, T N.O.

Third Respondent

Heard: 21 April 2015

Delivered: 21 May 2015

Summary: Review arbitration award. The Commissioner confirming the dismissal of a domestic worker who refused to sign and employment contract having concluded an oral contract and that having been in operation for three years. Section 29 of the BCEA does not require a written, neither does it impose the employer the duty to have the employment contract in writing.

MOLAHLEHI, J

Introduction

[1] This is an application to review and set aside the arbitration award made under case number GATW 3900-13 in terms of which the third respondent (“the Commissioner”) found the dismissal of the applicant to have been both procedurally and substantively fair and, accordingly, dismissed his unfair dismissal claim. This application was not opposed.

[2] The review application is accompanied by the application for condonation for its late filing, which was not opposed.

[3] The review application is 80 days late. It is apparent from the reading of the applicant’s founding affidavit that the reason for the delay was due to lack of knowledge on the part of the applicant as to the process to follow after the Commissioner issued the arbitration award. The delay was also caused by the applicant moving between the department of labour and the CCMA seeking advice as to what to do. He finally came to the Labour Court where she was advised by the SASLAW–pro bono office to review the arbitration award.

[4] In my view, considering the explanation tendered by the applicant, the delay of 80 days is not excessive. The applicant did not seat idle and suddenly plead ignorance of the law. From the time he received the arbitration award, she went about seeking advice as to what he needed to do. It would not serve the interest of justice if condonation for the late filing of the review application was to be refused.

Background facts

[5] The applicant who was employed by the first respondent as a domestic worker was dismissed for refusing to sign an employment contract. At the time of refusing to sign the contract, the employment relationship between the parties had been inexistence for about three

years. The employment relationship was based on the oral contract of employment concluded between the parties.

[6] According to the applicant, the first respondent required her to sign the contract which had unfavourable terms and conditions to those of the existing contract. It was for this reason that she refused to sign it.

Grounds of review

[7] The applicant contends that the arbitration award is reviewable because the Commissioner committed several gross irregularities in the conduct of the arbitration proceedings. The contention is based on the allegation in the founding affidavit that the Commissioner failed to take into account, inter alia, the fact that there was no obligation on her to sign the draft agreement. She also contended that the Commissioner adopted an incorrect approach in concluding that the Basic Conditions of Employment Act 75 of 1997 required a written contract to exist between an employee and an employer.

The arbitration award

[8] In his arbitration award, the Commissioner found that the dismissal was both procedurally and substantively fair as stated earlier. He reasoned that the first respondent was justified in dismissing the applicant for refusing to sign the employment contract. He further found that the dismissal was not on the spare of the moment.

Evaluation/Analysis

[9] In upholding the dismissal, the Commissioner reasoned that the first respondent, in requiring the applicant to sign the employment

contract, was doing so in compliance with the requirements of the section 29 of the BCEA.

[10] It is apparent that all what is required in terms of section 29 of the BCEA is that an employer must present to an employee in writing, on the day he or she starts to work the particulars regarding the employment relationship. In practice, this is generally done in the form of a contract of employment. It would seem that it is from this practice that a perception has emerged that the BCEA requires a written and signed employment

contract and that if an employee refuses to sign such a contract even during the existence of an employment relationship the employer is entitled to dismiss for that reason alone. This is, clearly, a misconception of the law.

[11] It should be pointed out that the absence of a signed agreement does not take the employment relationship outside the provisions of the Labour Relations Act. An oral employment contract provides an employee with no less rights than those rights envisaged in the Labour Relations Act as those employed in terms of a written contract. To this extent, an employee employed in terms of an oral agreement has the right not to be unfairly dismissed or subjected unfair labour practice in terms of section 185 of the LRA.[1] An oral employment contract can only be terminated if there exist substantive and valid reasons to do so.

[12] The Commissioner, in the present instance, seems to have been influenced by the same misconception referred to earlier in concluding that the dismissal of the applicant was for a fair reason. There was no evidence before the Commissioner that the refusal to sign the employment constituted any of the grounds for dismissal as envisaged in section 188 of the LRA.[2]

[13] In light of the above, I find the decision of the Commissioner to have failed the standard of reasonableness envisaged by the Constitutional

Court in Sidumo and Another v Rustenburg Platinum Mines Ltd and Others.[3] Accordingly, the arbitration award of the Commissioner stands to be reviewed. There is, however, insufficient material for this court to determine the matter. Thus the matter has to be remitted to the CCMA.

Order

[14] In the circumstances, the following order is made:

1. The arbitration award made under case number GATW 3900-13 is reviewed and set aside.

2. The matter is remitted to the second respondent before a Commissioner other than the third respondent.

____

Molahlehi, J

Judge of the Labour Court Johannesburg

Appearances:

For the Applicant:

In Person

___________

[1] Every employee has the right not to be- a) Unfairly dismissed; and b) Subjected to unfair labour practice.

[1] Every employee has the right not to be-

a) Unfairly dismissed; and

b) Subjected to unfair labour practice.

[2]

(1) A dismissal that is not automatically unfair, is unfair if the employer fails to prove- a) That the reason for dismissal is for a fair reason- i. Related to the employee’s conduct or capacity; or ii. Based on the employer’s operational requirements; and b) That the dismissal was effected in accordance with a fair procedure. (2) Any person considering whether or not the reason for the dismissal is a fair reason or whether or not the dismissal was effected in accordance with a fair procedure must take into account any relevant code of good practice issued in terms of this Act.

[2]

(1) A dismissal that is not automatically unfair, is unfair if the employer fails to prove-

a) That the reason for dismissal is for a fair reason-

i. Related to the employee’s conduct or capacity; or

ii. Based on the employer’s operational requirements; and

b) That the dismissal was effected in accordance with a fair procedure.

(2) Any person considering whether or not the reason for the dismissal is a fair reason or whether or not the dismissal was effected in accordance with a fair procedure must take into account any relevant code of good practice issued in terms of this Act.

[3] (2007) 28 ILJ 2405 (CC) at para 110.

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Authorities

Authorities used by the court

Cases, legislation, regulations, and constitutional provisions identified in the available record.

Sidumo and Another v Rustenburg Platinum Mines Ltd and Others (2007) 28 ILJ 2405 (CC)

Case cited

Basic Conditions of Employment Act 75 of 1997

Legislation

Legislation referenced in the available case record.

Labour Relations Act 66 of 1995

Legislation

Legislation referenced in the available case record.

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