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South Africa Case Law

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Labour Law [2018] ZALCJHB 177

Sodexo Southern Africa (Pty) Ltd v Servest (Pty) Ltd and Others (J1598/16)

Sodexo Southern Africa (Pty) Ltd v Servest (Pty) Ltd and Others (J1598/16) [2018] ZALCJHB 177 (11 May 2018)

Court
Labour Court Johannesburg
Case number
J1598/16
Judge
Barnes

The court found that the termination of the applicant's contract and the appointment of the first and second respondents to operate the staff restaurants at Multichoice sites constituted a transfer of a business as a going concern under section 197 of the LRA. The right of use and assumption of control over the infrastructure necessary to provide the catering service triggered the application of section 197, resulting in the automatic transfer of employment contracts of those employees employed by the applicant at the time of transfer to the new service providers. The court held that only tho…

Source excerpt

  • Section 197 Transfer
  • Outsourcing Arrangements
  • Automatic Substitution Of Employer
  • Business As Going Concern
  • Employment Contract Transfer
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Labour Law [2015] ZALAC 118

TAWUSA obo Others v TANSNAT (Pty )Ltd & 2 Others (JA95/13)

TAWUSA obo Others v TANSNAT (Pty )Ltd & 2 Others (JA95/13) [2015] ZALAC 118 (26 February 2015)

Court
Labour Appeal Court
Case number
JA95/13
Judges
Davis, Sutherland, Mngqibisa-Thusi

The court held that a month-to-month caretaker contract pending the appointment of a new operator does not constitute a transfer of a business as a going concern under section 197 of the Labour Relations Act. The arrangement lacked the necessary permanence and continuity, and did not involve the seamless transfer of the business, assets, employees, and customers. Furthermore, the appellants failed to establish which employees were affected and entitled to relief, as the evidence showed that the listed employees had been retrenched and were not employed by REMANT at the relevant time. The appe…

Source excerpt

  • Section 197 Transfer
  • Going Concern
  • Outsourcing Arrangements
  • Employee Retrenchment
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Labour Law [2012] ZALCJHB 86

Franmann Services (Pty) Ltd v Simba (Pty) Ltd and Another (J 1978/12)

Franmann Services (Pty) Ltd v Simba (Pty) Ltd and Another (J 1978/12) [2012] ZALCJHB 86; [2012] 12 BLLR 1293 (LC); (2013) 34 ILJ 897 (LC) (30 August 2012)

Court
Labour Court Johannesburg
Case number
J 1978/12
Judge
Van Niekerk

The court held that section 197 of the Labour Relations Act is not triggered solely by the termination of a contract between a client and a service provider and the subsequent appointment of a new service provider to perform similar activities. The applicant's business, as a labour broker, was not transferred as a going concern because there was no transfer of assets, goodwill, or infrastructure, nor any evidence that the second respondent intended to acquire any part of the applicant's business or employ its staff. The court found that the applicant's business would terminate and not continu…

Source excerpt

  • Section 197 Transfer
  • Outsourcing Arrangements
  • Transfer Of Business As Going Concern
  • Employment Continuity
  • Costs Award
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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.