Tombstone World CC v Du Toit and Another (J4393/01) [2001] ZALC 166 (10 October 2001)

Tombstone World CC v Du Toit and Another (J4393/01) [2001] ZALC 166 (10 October 2001)

The court found that the respondents were members of the applicant close corporation and not employees as defined by section 213 of the Labour Relations Act. The association agreement between the members regulated their internal relationship and did not create an employment relationship. The contracts of employment put in place by the applicant were not accepted by the respondents, who did not attend the relevant meeting and were reinstated as members. As the dispute concerned the rights and conduct of members of a close corporation and not employees, the Labour Court lacked jurisdiction to grant the relief sought. Accordingly, the application was dismissed with costs.

Citation
[2001] ZALC 166
Parties
Applicant: Tombstone World CC; Respondent: WAJ Du Toit; Respondent: ES Du Toit
Court
Labour Court
Jurisdiction
South Africa
Judgment Date
10 October 2001
Case Number
J4393/01
Procedural Posture
Urgent Application / Application for Interim and Final Interdict
Outcome
Application dismissed with costs.
Judges
A A Landman
Legal Topics
Jurisdiction of Labour Court, Close Corporation Membership, Employment Relationship, Final Interdict, Association Agreement
Labour Law Commercial and Corporate Jurisdiction of Labour Court Close Corporation Membership Employment Relationship Final Interdict Association Agreement

Case Brief

Summary, issues, holding and outcome

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Parties

Tombstone World CC

Applicant

WAJ Du Toit

Respondent

ES Du Toit

Respondent

Procedural Posture

Urgent Application / Application for Interim and Final Interdict

Legal Issues

  1. 1 Does the Labour Court have jurisdiction over disputes between members of a close corporation where no employment relationship exists.
  2. 2 Are the respondents employees of the applicant as defined in section 213 of the Labour Relations Act.
  3. 3 Is the relief sought by the applicant a final interdict or an interim interdict.

Ratio Decidendi

The court found that the respondents were members of the applicant close corporation and not employees as defined by section 213 of the Labour Relations Act. The association agreement between the members regulated their internal relationship and did not create an employment relationship. The contracts of employment put in place by the applicant were not accepted by the respondents, who did not attend the relevant meeting and were reinstated as members. As the dispute concerned the rights and conduct of members of a close corporation and not employees, the Labour Court lacked jurisdiction to grant the relief sought. Accordingly, the application was dismissed with costs.

Court Disposition

Application dismissed with costs.

Orders

  • The application is dismissed with costs.