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South Africa Case Law

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Labour Law [2022] ZALCJHB 97

Dimension Data (PTY) Ltd and Others v GWB Technologies CC and Others (J 478/2022)

Dimension Data (PTY) Ltd and Others v GWB Technologies CC and Others (J 478/2022) [2022] ZALCJHB 97; (2022) 43 ILJ 1824 (LC) (9 May 2022)

The Court found that the provision of end-user computing services to the City constituted a discrete, organised economic entity capable of being transferred. The termination of the applicants’ service agreement and the simultaneous appointment of GWB to provide the same services, using the same infrastructure, assets, and institutional knowledge, triggered section 197 of the Labour Relations Act. The Court distinguished the present facts from cases where only maintenance services were provided, noting that the EUC services involved a dedicated team, continuity of service, and the transfer of…

  • Section 197 Transfer
  • Change Of Service Provider
  • Employment Continuity
  • Outsourcing
  • Declaratory Relief
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Labour Law [2015] ZALCJHB 204

SATAWU and Another v MEC: Gauteng for Roads & Transport and Others (J1142/15)

SATAWU and Another v MEC: Gauteng for Roads & Transport and Others (J1142/15) [2015] ZALCJHB 204; (2015) 36 ILJ 3155 (LC) (15 July 2015)

The court found that while certain components of Putco's business—such as the contractual right to perform services, a general customer base, the right of use of bus stops and terminals, one depot, and some former drivers—were transferred to Autopax, these were insufficient and too fragmented to constitute a transfer of a business as a going concern. The majority of key assets, including buses, depots, and most employees, remained with Putco. The court emphasised that section 197 requires the transfer of a discrete, autonomous, and identifiable business undertaking, which was not present in t…

  • Section 197 Transfer
  • Outsourcing
  • Going Concern
  • Change Of Service Provider
  • Employment Protection
  • Government Subsidy
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