South Africa Case Law

Schnellecke Logistics Parts and Accessories (Pty) Ltd v Schenker South Africa (Pty) Ltd and Others (2025/002629)

Schnellecke Logistics Parts and Accessories (Pty) Ltd v Schenker South Africa (Pty) Ltd and Others (2025/002629) [2025] ZALCJHB 83 (21 February 2025)

Court

Labour Court Johannesburg

Case number

2025/002629

Judge

M Makhura

The Court found that the warehousing and operations management services provided by the applicant at MBSA's Parts Logistics Centre constitute a discrete business, not merely a service contract. The business comprises the use of MBSA's premises, equipment, IT systems, and workforce, forming an economic entity. The continuity of the scope of work, the transfer of assets and infrastructure, and the contractual provisions anticipating a section 197 transfer support the conclusion that the business is being transferred as a going concern. Schenker's assertion that it will use its own methods and w…

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• Section 197 Transfer
• Outsourcing
• Transfer Of Business As Going Concern
• Employee Rights
• Contractual Obligations
• Costs Order

Sithetho v Information Officer for Department of Higher Education and Training, Eastern Cape, KSD TVET College, Cicira Campus (2281/2023)

Sithetho v Information Officer for Department of Higher Education and Training, Eastern Cape, KSD TVET College, Cicira Campus (2281/2023) [2024] ZAECMHC 35 (24 May 2024)

Court

Eastern Cape High Court, Mthatha

Case number

2281/2023

Judge

V Kunju

The High Court dismissed an application for PAIA access, holding that the college was the proper party and that section 7 of PAIA barred reliance on PAIA amid pending proceedings.

• Promotion Of Access To Information Act
• Non Joinder
• Misjoinder
• Employee Rights
• Pending Criminal Proceedings
• Paia

Matshazi v Mezepoli Melrose Arch (Pty) Ltd and Another; Nyoni v Mezepoli Nicolway (Pty) Ltd and Another; Moto v Plaka Eastgate Restaurant and Another; Mohsen and Another v Brand Kitchen Hospitality (Pty) Ltd and Another (2020/10556; 2020/10555; 2020/10955; 2020/10956;)

Matshazi v Mezepoli Melrose Arch (Pty) Ltd and Another; Nyoni v Mezepoli Nicolway (Pty) Ltd and Another; Moto v Plaka Eastgate Restaurant and Another; Mohsen and Another v Brand Kitchen Hospitality (Pty) Ltd and Another (2020/10556; 2020/10555; 2020/10955; 2020/10956;) [2020] ZAGPJHC 136; (2021) 42 ILJ 600 (GJ) (3 June 2020)

Court

South Gauteng High Court, Johannesburg

Case number

2020/10556; 2020/10555; 2020/10955; 2020/10956

Judge

Weiner

The court found that the applicants, as employees and creditors, had locus standi to bring the business rescue applications. The respondent companies' reliance on force majeure was rejected, as there was no contractual or legal basis excusing payment obligations to employees or creditors during the lockdown. The companies were found to be financially distressed, having failed to pay salaries and incurred significant losses, with insufficient evidence of solvency or ability to meet debts. The court accepted that post-commencement finance of R4 million was available to support operations during…

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• Business Rescue
• Financial Distress
• Force Majeure
• Post Commencement Finance
• Employee Rights
• Urgent Interdict

Department of Health: Gauteng Provincial Government v National Education Health and Allied Workers Union and Others (J2864/16)

Department of Health: Gauteng Provincial Government v National Education Health and Allied Workers Union and Others (J2864/16) [2016] ZALCJHB 458 (5 December 2016)

Court

Labour Court Johannesburg

Case number

J2864/16

Judge

Tlhotlhalemaje

Labour Court confirmed an urgent interdict against an unprotected strike by forensic officers whose work stoppage disrupted post-mortem services and burial arrangements.

• Unprotected Strike
• Interdict
• Urgent Application
• Employee Rights
• Human Dignity
• Ubuntu

Communication Workers Union ("CWU") and Others v Mobile Telephone Networks (Pty) Ltd ("MTN") and Another (DA10/13)

Communication Workers Union ("CWU") and Others v Mobile Telephone Networks (Pty) Ltd ("MTN") and Another (DA10/13) [2015] ZALAC 8; (2015) 36 ILJ 1819 (LAC) (21 April 2015)

Court

Labour Appeal Court

Case number

DA10/13

Judges

Waglay, Davis, Ndlovu

The Labour Appeal Court held that MTN’s resumption of call centre operations after ending its service agreement with Interaction amounted to a transfer under s197 LRA.

• Automatic Transfer Of Employment
• Business As Going Concern
• Section 197 Lra
• Unfair Dismissal
• Contractual Obligations
• Employee Rights

Kalahari Country Club v National Union of Mineworkers and Another (CA16/2013)

Kalahari Country Club v National Union of Mineworkers and Another (CA16/2013) [2014] ZALCCT 67 (3 December 2014)

Court

Labour Court Cape Town

Case number

CA16/2013

Judges

Tlaletsi, Hlophe, Dlodlo

The court held that Mr Mabote was a member of NUM, as evidenced by the club's extension of organisational rights and deduction of union subscriptions. The club's business was sufficiently allied to mining to fall within NUM's constitution. The referral and conciliation forms confirmed NUM's representation of Mr Mabote, and the club did not object during conciliation. The court found that a purposive interpretation of the CCMA Rules and the LRA is required, prioritising fairness and the constitutional right to representation. The arbitrator's restrictive interpretation was incorrect, and the L…

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• Trade Union Representation
• Ccma Rules Interpretation
• Purposive Interpretation
• Employee Rights

Harsco Metals South Africa (Pty) Ltd and Another v Arcelormittal South Africa Ltd and Others (J2923/11)

Harsco Metals South Africa (Pty) Ltd and Another v Arcelormittal South Africa Ltd and Others (J2923/11) [2011] ZALCJHB 116; [2012] 4 BLLR 385 (LC); (2012) 33 ILJ 901 (LC) (29 December 2011)

Court

Labour Court Johannesburg

Case number

J2923/11

Judge

Van Niekerk

The court found that the termination of the service agreements between Harsco and AMSA, and the appointment of Phoenix and Tube City to perform substantially similar services at the same locations, with the majority of Harsco's employees and significant assets transferring, constitutes a transfer of a business as a going concern under section 197 of the Labour Relations Act. The court held that the factual circumstances meet the criteria established by the Constitutional Court and Labour Appeal Court, including the retention of an identifiable economic entity, the transfer of employees, and t…

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• Transfer Of Business As Going Concern
• Section 197 Lra
• Outsourcing
• Employee Rights
• Declaratory Relief

Trafford Trading (Pty) Ltd v National Bargaining Council for the Leather Industry of South Africa and Others (D 598/07)

Trafford Trading (Pty) Ltd v National Bargaining Council for the Leather Industry of South Africa and Others (D 598/07) [2009] ZALC 86; (2010) 31 ILJ 761 (LC) ; [2010] 1 BLLR 95 (LC) (29 April 2009)

Court

Labour Court

Case number

D 598/07

Judge

Cele J

Labour Court review of an exemption refusal under a collective agreement was dismissed. The court held the bargaining council applied the criteria properly and fairly.

• Collective Agreements
• Exemption Applications
• Review Of Administrative Action
• Procedural Fairness
• Employee Rights
• Social Justice

South African Municipal Workers Union and Others v Rand Airport Management Company (Pty) Ltd and Others (JS958/02)

South African Municipal Workers Union and Others v Rand Airport Management Company (Pty) Ltd and Others (JS958/02) [2002] ZALC 83; (2002) 23 ILJ 2304 (LC); [2002] 12 BLLR 1220 (LC) (27 September 2002)

Court

Labour Court

Case number

JS958/02

Judge

A A Landman

The court found that the outsourcing of the gardening and security functions by Rand Airport did not constitute a transfer of a business or part thereof as a going concern under section 197 of the Labour Relations Act. The gardening function was not an entity with its own management, assets, customers, or goodwill, but merely an activity forming part of non-core maintenance services. The security function had not been transferred, as no outsourcing agreement had been concluded between Rand Airport and Capital Air, and the facts did not support the existence of a going concern. The court held…

Source excerpt

• Section 197 Transfer
• Outsourcing
• Going Concern
• Employee Rights
• Retrenchment
• Contract Of Employment

National Education Health and Allied Workers Union v University of Cape Town and Others (CA12/00)

National Education Health and Allied Workers Union v University of Cape Town and Others (CA12/00) [2002] ZALAC 4; [2002] 4 BLLR 311 (LAC); (2002) 23 ILJ 306 (LAC) (7 February 2002)

Court

Labour Appeal Court

Case number

CA12/00

Judges

Zondo JP, Van Dijkhorst AJA, Comrie AJA

The Labour Appeal Court held that section 197 of the Labour Relations Act does not provide for the automatic transfer of employment contracts between employers in the absence of consensus. The section dispenses only with the requirement of employee consent, not employer consent. The concept of 'transfer as a going concern' requires agreement between the transferor and transferee on what is transferred, including the workforce. In the present case, the outsourcing of non-core services by the University of Cape Town did not constitute a transfer of part of its business as a going concern under…

Source excerpt

• Transfer Of Business
• Automatic Transfer Of Employment
• Outsourcing
• Section 197 Interpretation
• Employee Rights
• Continuity Of Employment