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South Africa Case Law

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Labour Law [2016] ZACC 37

Rural Maintenance (Pty) Limited and Another v Maluti-A-Phofung Local Municipality (CCT214/15)

Rural Maintenance (Pty) Limited and Another v Maluti-A-Phofung Local Municipality (CCT214/15) [2016] ZACC 37; 2017 (1) BCLR 64 (CC); (2017) 38 ILJ 295 (CC); [2017] 3 BLLR 258 (CC) (1 November 2016)

Court
Constitutional Court
Case number
CCT214/15
Judges
Mogoeng, Moseneke, Bosielo, Cameron, Froneman, Jafta, Khampepe, Madlanga, Mhlantla, Nkabinde, Zondo

The majority of the Constitutional Court held that leave to appeal should be refused. The Labour Appeal Court applied the correct test for a transfer of business as a going concern under section 197 of the LRA, requiring an overall assessment of all relevant factors, not the transfer of every asset. The factual record showed that Rural Maintenance did not transfer essential assets necessary for the Municipality to continue the business seamlessly, such as computers, vehicles, and debtor's books. The absence of these assets meant the Municipality could not carry on the same business, and thus…

Source excerpt

  • Transfer Of Business As Going Concern
  • Section 197 Lra
  • Municipal Service Provision
  • Employment Contracts Transfer
  • Constitutional Jurisdiction
  • Contract Validity
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Labour Law [2014] ZALAC 22

City Power (Pty) Ltd v Grinpal Energy Management Services (Pty) Ltd and Others (JA55/2012)

City Power (Pty) Ltd v Grinpal Energy Management Services (Pty) Ltd and Others (JA55/2012) [2014] ZALAC 22; [2014] 10 BLLR 945 (LAC); (2014) 35 ILJ 2757 (LAC) (29 May 2014)

Court
Labour Appeal Court
Case number
JA55/2012
Judges
Tlaletsi, Davis, Ndlovu

The court found that the uncontested facts established that the assets and expertise required to operate the prepaid metering project were transferred from the first respondent to the appellant. The business of providing prepaid electrical services to Alexandra residents was handed over to the appellant, and the project continued under its control. The transfer included tangible and intangible assets and the necessary employees. Applying the principles set out by the Constitutional Court in Aviation Union, the court held that a transfer of business as a going concern had occurred, triggering…

Source excerpt

  • Section 197 Transfer
  • Outsourcing Agreements
  • Second Generation Transfer
  • Continuity Of Employment
  • Municipal Service Provision
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About this LexChat collection

South Africa decisions are organised by court, judge, legal area and indexed issue so a practitioner can move from a proposition to a citable authority with the surrounding context intact.

Source links and collection timestamps are retained alongside the indexed records.