South Africa Case Law

Mobile Telephone Networks (Pty) Ltd and Others v CCI SA (Umhlanga) (Pty) Ltd and Others (JA 12/2023)

Mobile Telephone Networks (Pty) Ltd and Others v CCI SA (Umhlanga) (Pty) Ltd and Others (JA 12/2023) [2023] ZALAC 10; (2023) 44 ILJ 1906 (LAC); [2023] 10 BLLR 1006 (LAC) (15 June 2023)

Court

Labour Appeal Court

Case number

JA 12/2023

Judges

Waglay JP, Sutherland JA, Gqamana AJA

The Labour Appeal Court held that section 197 of the Labour Relations Act was not triggered by the termination of the contract between MTN and CCI. Although a discrete MTN business unit existed within CCI, there was no transfer of that business unit as a going concern to MTN, Ibridge, or Ison. The termination resulted only in a redistribution of call volumes among existing service providers, with no transfer of assets, operational capacity, or workforce retaining its identity. The facts did not support the Labour Court's finding that section 197 applied, as the essential elements of a transfe…

Source excerpt

• Section 197 Transfer
• Outsourcing
• Going Concern
• Job Security
• Contractual Termination