Wallis v Schmidt Industrials (Pty) Ltd (D35/2008) [2011] ZALCD 43 (20 October 2011)

Wallis v Schmidt Industrials (Pty) Ltd (D35/2008) [2011] ZALCD 43 (20 October 2011)

The court found that the respondent had followed a fair and reasonable procedure in consulting the applicant regarding his possible retrenchment, in compliance with section 189 of the Labour Relations Act. The evidence established that the respondent was facing genuine financial difficulties and that the applicant's salary was a significant portion of the wage bill. The consultation process was conducted in good faith, with the applicant given multiple opportunities to make submissions, all of which were considered by the directors before the decision to retrench was made. The applicant's claims regarding his remuneration and entitlement to six months' notice pay were found to be...

Citation
[2011] ZALCD 43
Parties
Applicant: Les Wallis; Respondent: Schmidt Industrials (Pty) Ltd
Court
Labour Court Durban
Jurisdiction
South Africa
Judgment Date
20 October 2011
Case Number
D35/2008
Procedural Posture
Labour Law Application / Trial
Outcome
The applicant's claim is dismissed with costs.
Judges
Gush
Legal Topics
Retrenchment, Section 189 Consultation, Procedural Fairness, Substantive Fairness, Remuneration Claim, Costs Award
Labour Law Retrenchment Section 189 Consultation Procedural Fairness Substantive Fairness Remuneration Claim Costs Award

Case Brief

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Parties

Les Wallis

Applicant

Schmidt Industrials (Pty) Ltd

Respondent

Procedural Posture

Labour Law Application / Trial

Legal Issues

  1. 1 Whether the respondent complied with section 189 of the Labour Relations Act in consulting the applicant prior to retrenchment.
  2. 2 Whether the dismissal of the applicant was substantively and procedurally fair.
  3. 3 Whether the applicant is entitled to reinstatement or compensation, including six months' notice pay.

Ratio Decidendi

The court found that the respondent had followed a fair and reasonable procedure in consulting the applicant regarding his possible retrenchment, in compliance with section 189 of the Labour Relations Act. The evidence established that the respondent was facing genuine financial difficulties and that the applicant's salary was a significant portion of the wage bill. The consultation process was conducted in good faith, with the applicant given multiple opportunities to make submissions, all of which were considered by the directors before the decision to retrench was made. The applicant's claims regarding his remuneration and entitlement to six months' notice pay were found to be...

Court Disposition

The applicant's claim is dismissed with costs.

Orders

  • The applicant's claim is dismissed with costs.