Woolworths (Pty) Ltd v CCMA and Others (J1383/2017) [2017] ZALCJHB 395 (27 June 2017)

Woolworths (Pty) Ltd v CCMA and Others (J1383/2017) [2017] ZALCJHB 395 (27 June 2017)

The court held that while it has the discretion to stay the enforcement of an arbitration award pending review, the statutory requirement for security under section 145(8) of the Labour Relations Act is peremptory unless exceptional circumstances justify a departure. Woolworths, as a financially robust entity, failed to demonstrate exceptional circumstances warranting exemption or reduction of the security amount. The legislative intent is to protect employees from further delay or costs in recovering compensation. The court refused to dispense with or reduce the security and granted the stay subject to the applicant furnishing security as prescribed.

Citation
[2017] ZALCJHB 395
Parties
Applicant: Woolworths (Pty) Ltd; Respondent: CCMA; Respondent: Commissioner Raffee; Respondent: Akalani Gladness Masindi
Court
Labour Court Johannesburg
Jurisdiction
South Africa
Judgment Date
27 June 2017
Case Number
J1383/2017
Procedural Posture
Stay Application / Ex Tempore Judgment on Interim Relief
Outcome
Rule nisi granted staying enforcement of the arbitration award pending review, subject to the applicant furnishing security as required by section 145(8) of the Labour Relations Act.
Judges
Steenkamp
Legal Topics
Stay of Enforcement, Security for Review, Arbitration Award, Labour Relations Act, Compensation Award
Labour Law Civil Procedure Stay of Enforcement Security for Review Arbitration Award Labour Relations Act Compensation Award

Case Brief

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Parties

Woolworths (Pty) Ltd

Applicant

CCMA

Respondent

Commissioner Raffee

Respondent

Akalani Gladness Masindi

Respondent

Procedural Posture

Stay Application / Ex Tempore Judgment on Interim Relief

Legal Issues

  1. 1 Whether the enforcement of the arbitration award should be stayed pending the outcome of the review application.
  2. 2 Whether the applicant should be exempted from furnishing security or allowed to reduce the amount of security required under section 145(8) of the Labour Relations Act.

Ratio Decidendi

The court held that while it has the discretion to stay the enforcement of an arbitration award pending review, the statutory requirement for security under section 145(8) of the Labour Relations Act is peremptory unless exceptional circumstances justify a departure. Woolworths, as a financially robust entity, failed to demonstrate exceptional circumstances warranting exemption or reduction of the security amount. The legislative intent is to protect employees from further delay or costs in recovering compensation. The court refused to dispense with or reduce the security and granted the stay subject to the applicant furnishing security as prescribed.

Court Disposition

Rule nisi granted staying enforcement of the arbitration award pending review, subject to the applicant furnishing security as required by section 145(8) of the Labour Relations Act.

Orders

  • A rule nisi is issued calling upon the respondents to show cause on the return day, 20 September 2017, why an order should not be granted staying enforcement of the arbitration award under case reference GAJB 20792/16 dated 17 March 2017 pending the outcome of the review application.
  • The applicant must provide security in terms of section 145(8) of the Labour Relations Act by 7 July 2018.