South Africa Case Law

Van Zyl NO and Others v Commission for Conciliation, Mediation and Arbitration and Others (C212/2011)

Van Zyl NO and Others v Commission for Conciliation, Mediation and Arbitration and Others (C212/2011) [2012] ZALCCT 53 (14 March 2012)

Court

Labour Court Cape Town

Case number

C212/2011

Judge

Steenkamp

The court found that the applicants failed to establish any reviewable irregularity in the arbitrator's award. The arbitrator correctly accepted the uncontested evidence that the employee was dismissed by the CEO of CPI during provisional liquidation, without compliance with the consultation requirements of section 38(5) of the Insolvency Act. The employment contract was not terminated by operation of law but only suspended, and the employer acted outside the statutory framework by dismissing the employee. The arbitrator's conclusion that the dismissal was procedurally and substantively unfai…

Source excerpt

• Insolvency And Employment
• Unfair Dismissal
• Arbitration Review
• Consultation Requirements
• Liquidation Effect On Contracts

Hydro Colour Inks (Pty) Ltd v Chemical, Energy, Paper, Printing, Woods And Allied Workers Union (JA48/07, JA77/09)

Hydro Colour Inks (Pty) Ltd v Chemical, Energy, Paper, Printing, Woods And Allied Workers Union (JA48/07, JA77/09) [2011] ZALAC 14; [2011] 7 BLLR 637 (LAC); (2011) 32 ILJ 1625 (LAC) (18 April 2011)

Court

Labour Appeal Court

Case number

JA48/07, JA77/09

Judges

Tlaletsi, Zondi, Molemela

The court found that the facts demonstrated a transfer of business as a going concern from Keep Inks to Hydro Colour Inks (Pty) Ltd. The appellant operated from the same premises, used the same equipment, employed the same workforce, and continued the same business activities as Keep Inks. The overlap in customers, suppliers, and management further supported this conclusion. Section 197A of the Labour Relations Act applies in cases of insolvency, and the new employer is automatically substituted in the place of the old employer for contracts of employment existing immediately before winding u…

Source excerpt

• Transfer Of Business As Going Concern
• Section 197a
• Insolvency And Employment
• Automatic Substitution Of Employer
• Reinstatement Orders
• Contract Of Employment

Chemical, Energy, Paper, Printing, Wood and Allied Workers Union v Cordero and Another (JS 546/2005)

Chemical, Energy, Paper, Printing, Wood and Allied Workers Union v Cordero and Another (JS 546/2005) [2007] ZALC 84; (2008) 29 ILJ 1157 (LC) (8 November 2007)

Court

Labour Court

Case number

JS 546/2005

Judge

Francis

The court found, based on the agreed facts, that the business of Keep Inks was transferred as a going concern to the second respondent, Hydro Colour Inks (Pty) Ltd. The second respondent operates from the same premises, uses the same equipment, employs the same workforce, and continues the same business activities. The transfer occurred in circumstances of insolvency, and section 197A of the Labour Relations Act applies. The effect is that the second respondent is automatically substituted in the place of Keep Inks in the contracts of employment of the retrenched employees, whose contracts we…

Source excerpt

• Transfer Of Business As Going Concern
• Section 197 Lra
• Section 197a Lra
• Reinstatement
• Arbitration Award Enforcement
• Insolvency And Employment

Chemical, Energy, Paper, Printing, Wood and Allied Workers Union v Hydro Colour Inks (Pty) Ltd (JS546/2005)

Chemical, Energy, Paper, Printing, Wood and Allied Workers Union v Hydro Colour Inks (Pty) Ltd (JS546/2005) [2007] ZALC 119; [2011] 7 BLLR 655 (LC) (8 November 2007)

Court

Labour Court

Case number

JS546/2005

Judge

Francis

The Labour Court found that Keep Inks’ business had transferred as a going concern to Hydro Colour Inks, triggering section 197A substitution and liability.

• Transfer Of Business As Going Concern
• Section 197 Lra
• Section 197a Lra
• Automatic Substitution Of Employer
• Reinstatement Orders
• Insolvency And Employment