Tasima (Pty) Ltd v Road Traffic Management Corporation and Others (J890/17) [2017] ZALCJHB 198; (2017) 38 ILJ 2385 (LC) (25 May 2017)

Tasima (Pty) Ltd v Road Traffic Management Corporation and Others (J890/17) [2017] ZALCJHB 198; (2017) 38 ILJ 2385 (LC) (25 May 2017)

The Court held that the handover of the eNaTIS system and services from Tasima to the RTMC, pursuant to the Constitutional Court’s order, constituted a transfer of a business as a going concern under section 197 of the Labour Relations Act. The Court rejected RTMC’s argument that section 197 does not apply to public entities or non-profit undertakings, finding that the statutory definition of ‘business’ is broad and includes services rendered by public bodies. The Court found that the RTMC had taken over the entirety of Tasima’s business, including its premises, assets, and ongoing operations, and that the employment contracts of Tasima’s employees transferred automatically to RTMC on 5...

Citation
[2017] ZALCJHB 198
Parties
Applicant: Tasima (Pty) Ltd; Respondent: Road Traffic Management Corporation; Respondent: Department of Transport; Respondent: Director General: Department of Transport; Respondent: Minister of Transport; Respondent: Employees listed in Annex “A”
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
25 May 2017
Case Number
J 890/17
Procedural Posture
Urgent Application / Judgment on Urgent Application for Declaratory Relief Under S 197 LRA
Outcome
Application granted. The contracts of employment of the 5th to 84th respondents transferred automatically from Tasima to RTMC on 5 April 2017 under section 197 of the LRA.
Judges
A J Steenkamp
Legal Topics
Automatic Transfer of Employment, Section 197 Lra, Business as Going Concern, Public Sector Transfer, Estoppel, Confidentiality of Employee Data
Labour Law Civil Procedure Automatic Transfer of Employment Section 197 Lra Business as Going Concern Public Sector Transfer Estoppel Confidentiality of Employee Data

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Parties

Tasima (Pty) Ltd

Applicant

Road Traffic Management Corporation

Respondent

Department of Transport

Respondent

Director General: Department of Transport

Respondent

Minister of Transport

Respondent

Employees listed in Annex “A”

Respondent

Procedural Posture

Urgent Application / Judgment on Urgent Application for Declaratory Relief Under S 197 LRA

Legal Issues

  1. 1 Whether the handover of the eNaTIS system and services from Tasima to RTMC constitutes a transfer of a business as a going concern under section 197 of the Labour Relations Act.
  2. 2 Whether the contracts of employment of Tasima’s employees transferred automatically to RTMC upon the handover.
  3. 3 Whether section 197 applies to transfers involving public entities and non-profit generating undertakings.

Ratio Decidendi

The Court held that the handover of the eNaTIS system and services from Tasima to the RTMC, pursuant to the Constitutional Court’s order, constituted a transfer of a business as a going concern under section 197 of the Labour Relations Act. The Court rejected RTMC’s argument that section 197 does not apply to public entities or non-profit undertakings, finding that the statutory definition of ‘business’ is broad and includes services rendered by public bodies. The Court found that the RTMC had taken over the entirety of Tasima’s business, including its premises, assets, and ongoing operations, and that the employment contracts of Tasima’s employees transferred automatically to RTMC on 5...

Court Disposition

Application granted. The contracts of employment of the 5th to 84th respondents transferred automatically from Tasima to RTMC on 5 April 2017 under section 197 of the LRA.

Orders

  • It is declared that, with effect from 5 April 2017, the contracts of employment of the 5th to 84th respondents transferred automatically from Tasima (Pty) Ltd to the Road Traffic Management Corporation in accordance with section 197 of the Labour Relations Act.
  • The RTMC is directed to pay the 5th to 84th respondents from 5 April 2017 to the date of final determination, on a monthly basis, the amounts set forth in the schedule annexed to the founding affidavit, and on an annual basis, any additional amounts making up the annual total cost to company.