South Africa Case Law

Associated Computer Solutions (PTY) Ltd and Others v Man Truck and Bus (SA) (PTY) Ltd and Another (1 August 2022) (J 808/22)

Associated Computer Solutions (PTY) Ltd and Others v Man Truck and Bus (SA) (PTY) Ltd and Another (1 August 2022) (J 808/22) [2022] ZALCJHB 203 (1 August 2022)

Court

Labour Court Johannesburg

Case number

J 808/22

Judge

Prinsloo

The court found that the termination of the agreement between ACS and MAN did not constitute a transfer of business as a going concern under section 197 of the Labour Relations Act. The Embrace ERP Service Desk, after outsourcing, became part of ACS's broader service desk, servicing multiple clients and lacking a discrete economic identity. Upon termination, no assets, technology, or employees would transfer to MAN, and the affected employees would not be able to render the same services on MAN's new SAP system. The retention of 30 Embrace licences by MAN was solely for accessing historical d…

Source excerpt

• Section 197 Transfer
• Outsourcing And Insourcing
• Employment Continuity
• Contract Termination
• Business As Going Concern

Water and Sanitation Services South Africa (Pty) Ltd v King Cetshwayo District Municipality and Others

Water and Sanitation Services South Africa (Pty) Ltd v King Cetshwayo District Municipality and Others [2020] ZALCJHB 269; J 630/20 (3 September 2020)

Court

Labour Court Johannesburg

Case number

J 630/20

Judge

Van Niekerk

The Court found that the termination of the SLA resulted in the municipality assuming the essential assets, infrastructure, and activities previously conducted by the applicant. The municipality continued to provide water services seamlessly, using the same infrastructure and operational methods. The factual enquiry established that the business operated by the applicant was transferred to the municipality as a going concern, triggering section 197 of the LRA. The contracts of employment of the listed employees were automatically transferred to the municipality, and all rights and obligations…

Source excerpt

• Section 197 Transfer
• Outsourcing And Insourcing
• Automatic Transfer Of Employment
• Municipal Services Contract
• Termination Of Service Level Agreement

Logwood Village NPC v Lecso Manufacturing Proprietary Limited and Others (J1586/19)

Logwood Village NPC v Lecso Manufacturing Proprietary Limited and Others (J1586/19) [2019] ZALCJHB 261 (3 October 2019)

Court

Labour Court Johannesburg

Case number

J 1586/19

Judge

Tlhotlhalemaje

The Labour Court held that Lecso’s termination of an assembly agreement and insourcing of work did not trigger section 197 of the LRA.

• Section 197 Transfer
• Outsourcing And Insourcing
• Contract Termination
• Employment Continuity
• Section-197-transfer
• Outsourcing-and-insourcing