South Africa Case Law

South African Clothing and Textile Workers Union and Another and Others v Precision Cutting and Trim and Others (C524/2022)

South African Clothing and Textile Workers Union and Another and Others v Precision Cutting and Trim and Others (C524/2022) [2025] ZALCCT 13 (19 February 2025)

Court

Labour Court Cape Town

Case number

C524/2022

Judge

T Gandidze

The Labour Court granted condonation for a late referral in an automatically unfair dismissal dispute, finding the delay explained and prospects of success arguable.

• Condonation
• Automatically Unfair Dismissal
• Transfer Of Business
• Section 197 Lra
• Joinder
• Late Referral

Slabbert v Muji Motor Group (Pty) Ltd (D315/21)

Slabbert v Muji Motor Group (Pty) Ltd (D315/21) [2024] ZALCD 30; (2024) 45 ILJ 2817 (LC) (16 September 2024)

Court

Labour Court Durban

Case number

D315/21

Judge

Whitcher

The court found that there was no agreed retirement age between the applicant and the respondent or its predecessor. The respondent failed to prove that the industry norm of 65 years applied to the applicant's position, as he was not a member of the relevant provident funds nor obliged to join them, and no evidence was presented that employees in similar capacities retire at 65. The most proximate cause of the applicant's dismissal was his age, not the transfer of business. The respondent was not entitled to impose retirement based on industry agreements that did not bind the applicant. Accor…

Source excerpt

• Automatically Unfair Dismissal
• Age Discrimination
• Retirement Age
• Section 187 Lra
• Section 197 Lra

Motor Industry Staff Association and Another v Eastvaal Motors (Pty) Ltd (JS927/2019)

Motor Industry Staff Association and Another v Eastvaal Motors (Pty) Ltd (JS927/2019) [2024] ZALCJHB 256; (2024) 45 ILJ 2349 (LC) (17 July 2024)

Court

Labour Court Johannesburg

Case number

JS927/2019

Judge

RN Daniels

The court found, on the overwhelming balance of facts, that Eastvaal Motors (Pty) Ltd took transfer of the whole business of Motomid (Pty) Ltd as a going concern on 1 April 2019. The respondent continued the same business, with the same assets, customers, workforce, and premises, and recognized prior service and leave entitlement of employees. The dismissal of the second applicant was directly related to the transfer and thus automatically unfair in terms of section 187(1)(g) of the Labour Relations Act. The respondent's arguments regarding lack of intention, absence of share purchase, and ju…

Source excerpt

• Transfer Of Business As Going Concern
• Automatic Unfair Dismissal
• Section 197 Lra
• Jurisdiction Of Labour Court
• Compensation For Unfair Dismissal

Africa Online Operations (Mauritius) Limited v Scanlon and Others (CA01/2023)

Africa Online Operations (Mauritius) Limited v Scanlon and Others (CA01/2023) [2024] ZALAC 2; (2024) 45 ILJ 790 (LAC); [2024] 4 BLLR 357 (LAC) (31 January 2024)

Court

Labour Appeal Court

Case number

CA01/2023

Judges

Waglay, Mlambo, Davis

The Labour Appeal Court held that the substance of the transactions following the liquidation of EIMS demonstrated that AOOML had assumed the key obligations previously undertaken by EIMS, including contracting with key personnel and retaining the SOLID platform to ensure uninterrupted shared services to the operating companies. The Court found that AOOML replaced EIMS as the relevant business entity and that the employment contracts of the respondents were transferred to AOOML in terms of section 197 of the LRA. The Court rejected the appellant's argument that no transfer occurred, emphasizi…

Source excerpt

• Transfer Of Business As Going Concern
• Section 197 Lra
• Employee Rights On Transfer
• Substance Over Form
• Liquidation And Employment
• Continuity Of Employment

Katiso Transport and Logistics CC and Another v Eagle Liner Transport (Pty) Ltd and Others (JA118/2022)

Katiso Transport and Logistics CC and Another v Eagle Liner Transport (Pty) Ltd and Others (JA118/2022) [2023] ZALAC 31; [2024] 3 BLLR 255 (LAC) (30 November 2023)

Court

Labour Appeal Court

Case number

JA118/2022

Judges

Mlambo JA, Davis JA, Smith AJA

The Labour Appeal Court limited a section 197 transfer order to the cross-border bus service and its drivers, setting aside a broader declaratory order.

• Transfer Of Business
• Section 197 Lra
• Declaratory Relief
• Employment Contracts
• Res Judicata
• Section-197-lra

Avis Southern Africa (Pty) Limited and Others v Porteous and Another (2023/0817898)

Avis Southern Africa (Pty) Limited and Others v Porteous and Another (2023/0817898) [2023] ZAGPJHC 1160; 2024 (2) SA 386 (GJ) (16 October 2023)

Court

South Gauteng High Court, Johannesburg

Case number

2023/0817898

Judge

C Bester

The High Court dismissed an urgent bid to enforce a restraint and confidentiality claim, finding no proven cession of restraint rights or protectable interest.

• Restraint Of Trade
• Transfer Of Business
• Confidential Information
• Protectable Interest
• Interim Interdict
• Section 197 Lra

Beedle v Slo-Jo Innovations Hub (Pty) Ltd (JA21/23; JA37/22)

Beedle v Slo-Jo Innovations Hub (Pty) Ltd (JA21/23; JA37/22) [2023] ZALAC 17 (17 August 2023)

Court

Labour Appeal Court

Case number

JA21/23; JA37/22

Judges

Waglay, Davis, Smith

The Labour Appeal Court held that the appellant's employment contract, including the restraint of trade clause, remained in force after the internal restructuring and transfer to the respondent. The evidence showed that the appellant's terms and conditions of employment were unchanged, and section 197 of the Labour Relations Act applied, resulting in automatic substitution of the employer. The restraint of trade clause was found to be reasonable in scope, duration, and geographic application, given the appellant's access to confidential information, trade secrets, and key customer relationshi…

Source excerpt

• Restraint Of Trade
• Transfer Of Business As Going Concern
• Section 197 Lra
• Confidential Information
• Public Policy
• Duration Of Restraint

Crazy Splash Swim (Pty) Ltd v Nortje and Others (20743/2022)

Crazy Splash Swim (Pty) Ltd v Nortje and Others (20743/2022) [2023] ZAWCHC 163; (2023) 44 ILJ 2538 (WCC) (13 July 2023)

Court

Western Cape High Court, Cape Town

Case number

20743/2022

Judge

Lekhuleleni

The High Court held that the applicant failed to prove any restraint of trade in the employee’s contract, and dismissed the interdict application with costs.

• Restraint Of Trade
• Employment Contracts
• Section 197 Lra
• Enforceability Of Oral Agreements
• Protectable Interest
• Public Policy

Numsa obo Members and Others v AIH Logistics (Pty) Ltd and Another (D 1112/19)

Numsa obo Members and Others v AIH Logistics (Pty) Ltd and Another (D 1112/19) [2023] ZALCD 2; (2023) 44 ILJ 1099 (LC); [2023] 5 BLLR 459 (LC) (27 January 2023)

Court

Labour Court Durban

Case number

D 1112/19

Judge

B Whitcher

The Labour Court held that the transfer to AIH Logistics was not a section 197 transfer of a business as a going concern and ordered restoration of the prior employment position.

• Transfer Of Business
• Section 197 Lra
• Continuity Of Employment
• Sham Transfer
• Restoration Of Status Quo
• Section-197

Mkhasibe N.O. and Another v Atlas Financial Services (PTY) Ltd (JS 607/2018)

Mkhasibe N.O. and Another v Atlas Financial Services (PTY) Ltd (JS 607/2018) [2022] ZALCJHB 300 (24 October 2022)

Court

Labour Court Johannesburg

Case number

JS 607/2018

Judge

Van Niekerk

The delay in referring the dispute to the Labour Court was inordinate, amounting to nearly three years. The explanation provided for the delay was unsatisfactory, particularly for the second applicant, who was present at the conciliation hearing and should have been aware of the need to refer the matter to court. The applicants failed to dispute the existence and terms of the settlement agreements, which constituted a waiver of any right to institute further proceedings. In the absence of a reasonable explanation for the delay and any prospects of success, condonation cannot be granted. The m…

Source excerpt

• Condonation
• Automatic Unfair Dismissal
• Settlement Agreement
• Late Referral
• Section 197 Lra