Thekwini Security Services v Director General, Department of Labour (D576/05) [2007] ZALC 187 (8 February 2007)

Thekwini Security Services v Director General, Department of Labour (D576/05) [2007] ZALC 187 (8 February 2007)

The court found that the applicable formula for calculating the annual bonus, as set out in the sectoral determination, did not reference the hourly wage and must be interpreted strictly. The correction notice published to amend the formula was not retrospective, and therefore the appellant’s interpretation prevailed for the period in dispute. Regarding the apparel allowance, clause 16.1.(c) only required payment if employees were required to clean their uniforms. Since the appellant did not require this, it was not liable for the allowance. The appeal succeeded on both grounds due to the strict interpretation of the sectoral determination’s wording.

Citation
[2007] ZALC 187
Parties
Applicant: Thekwini Security Services; Respondent: Director General, Department of Labour
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
8 February 2007
Case Number
D576/05
Procedural Posture
Civil Appeal / Appeal From Compliance Order
Outcome
Appeal upheld on both grounds; no order as to costs.
Judges
D Pillay
Legal Topics
Sectoral Determination, Annual Bonus Calculation, Apparel Allowance, Statutory Interpretation
Labour Law Sectoral Determination Annual Bonus Calculation Apparel Allowance Statutory Interpretation

Case Brief

Summary, issues, holding and outcome

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Parties

Thekwini Security Services

Applicant

Director General, Department of Labour

Respondent

Procedural Posture

Civil Appeal / Appeal From Compliance Order

Legal Issues

  1. 1 Whether the formula for calculating annual bonus under the applicable sectoral determination was correctly interpreted by the appellant.
  2. 2 Whether the appellant was liable to pay an apparel allowance to employees under clause 16.1.(c) of sectoral determination No 6.

Ratio Decidendi

The court found that the applicable formula for calculating the annual bonus, as set out in the sectoral determination, did not reference the hourly wage and must be interpreted strictly. The correction notice published to amend the formula was not retrospective, and therefore the appellant’s interpretation prevailed for the period in dispute. Regarding the apparel allowance, clause 16.1.(c) only required payment if employees were required to clean their uniforms. Since the appellant did not require this, it was not liable for the allowance. The appeal succeeded on both grounds due to the strict interpretation of the sectoral determination’s wording.

Court Disposition

Appeal upheld on both grounds; no order as to costs.

Orders

  • The appeal succeeds on both grounds.
  • No order as to costs is made.