Thabethe and Others v Lamprecht Properties (CC) (P544-09) [2011] ZALCPE 20 (26 October 2011)

Thabethe and Others v Lamprecht Properties (CC) (P544-09) [2011] ZALCPE 20 (26 October 2011)

The court found that the applicants' contracts did not terminate automatically by agreement, as the painting work was not completed and the employer suspended operations for financial reasons. The phrase 'completion of the construction on the sites' could not be interpreted to allow the employer to end the contracts at will before the work was finished. The termination constituted a dismissal for operational reasons, and the respondent failed to consult with the applicants as required by section 189 of the Labour Relations Act. The retrenchment was therefore procedurally unfair. The court awarded compensation equivalent to six weeks' remuneration to each applicant, taking into account the...

Citation
[2011] ZALCPE 20
Parties
Applicant: G R Thabethe; Applicant: Q Khumalo; Applicant: C Zulu; Applicant: F Ndlovu; Respondent: Lamprecht Properties (CC)
Court
Labour Court Port Elizabeth
Jurisdiction
South Africa
Judgment Date
26 October 2011
Case Number
P544-09
Procedural Posture
Labour Unfair Dismissal / Trial
Outcome
The applicants were found to have been procedurally unfairly dismissed for operational reasons.
Judges
R Lagrange
Legal Topics
Unfair Dismissal, Fixed Term Contracts, Retrenchment Procedure, Compensation for Unfair Dismissal
Labour Law Unfair Dismissal Fixed Term Contracts Retrenchment Procedure Compensation for Unfair Dismissal

Case Brief

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Parties

G R Thabethe

Applicant

Q Khumalo

Applicant

C Zulu

Applicant

F Ndlovu

Applicant

Lamprecht Properties (CC)

Respondent

Procedural Posture

Labour Unfair Dismissal / Trial

Legal Issues

  1. 1 Whether the applicants' employment was terminated by agreement or constituted a dismissal for operational reasons.
  2. 2 Whether the respondent was obliged to consult with the applicants prior to termination under section 189 of the Labour Relations Act.
  3. 3 Whether the retrenchment was procedurally unfair due to lack of consultation.

Ratio Decidendi

The court found that the applicants' contracts did not terminate automatically by agreement, as the painting work was not completed and the employer suspended operations for financial reasons. The phrase 'completion of the construction on the sites' could not be interpreted to allow the employer to end the contracts at will before the work was finished. The termination constituted a dismissal for operational reasons, and the respondent failed to consult with the applicants as required by section 189 of the Labour Relations Act. The retrenchment was therefore procedurally unfair. The court awarded compensation equivalent to six weeks' remuneration to each applicant, taking into account the...

Court Disposition

The applicants were found to have been procedurally unfairly dismissed for operational reasons.

Orders

  • The termination of Messrs G R Thabethe, Q Khumalo and C Zulu’s services on 17 October 2008 is declared a procedurally unfair dismissal for operational reasons.
  • The respondent must pay each of the applicants six weeks’ remuneration at the respective rates paid at termination: G R Thabethe - R5,100.00; Q Khumalo - R5,250.00; C Zulu - R5,250.00.