King Cetshwayo District Municipality v Water and Sanitation Services South Africa (Pty) Ltd and Others (JA9/21)
King Cetshwayo District Municipality v Water and Sanitation Services South Africa (Pty) Ltd and Others (JA9/21) [2025] ZALAC 3; [2025] 5 BLLR 460 (LAC); (2025) 46 ILJ 1111 (LAC) (10 January 2025)
The court held that the termination of the service level agreement and the return of core municipal assets to the appellant constituted a transfer of a business as a going concern under section 197 of the Labour Relations Act. The nature of the business was asset-reliant, and the core assets necessary for the provision of bulk water services were returned to the municipality. The lack of transfer of certain assets owned by the first respondent and the non-transfer of employees did not preclude the application of section 197, as the business continued in substance under the appellant. The cour…
Source excerpt
- Section 197 Transfer
- Outsourcing
- Business As Going Concern
- Municipal Tender
- Employee Transfer
- Contractual Interpretation