Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd v CEPPWAWU obo Members and Others (C495/2019)
Petroleum Oil and Gas Corporation of South Africa (SOC) Ltd v CEPPWAWU obo Members and Others (C495/2019) [2022] ZALCCT 55 (25 October 2022)
The Labour Court found that the arbitrator's conclusion that PetroSA was contractually obliged to pay the STIP bonus for the 2017/2018 financial year was unreasonable and not supported by the evidence. The STIP policy was valid only for five years and expired on 31 March 2017, with no automatic continuation or replacement. Clause 16 of the employment contracts did not create an ongoing entitlement to the STIP bonus after the scheme's expiry. However, the employer's unilateral decision to pay a flat gratuity instead of consulting with unions over the change in bonus structure was procedurally…
Source excerpt
- Unfair Labour Practice
- Collective Agreement Interpretation
- Performance Bonus
- Procedural Fairness
- Employment Contracts
- Consultation Requirement