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South Africa decisions
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Baloi and Another v Maddox Adams International South Africa (Pty) Ltd (J203/16) [2018] ZALCJHB 264 (15 August 2018)
The Labour Court held that the applicants’ enforcement claim had prescribed and dismissed their bid to treat the respondent as liable under section 197A of the LRA.
Atlas Packaging (Pty) Ltd v Palierakis; In re: Palierakis v Atlas Carton and Litho CC (In Liquidation) and Others (JA108/14) [2015] ZALAC 43; (2016) 37 ILJ 109 (LAC) (21 October 2015)
The Labour Appeal Court held that the business-sale arrangement was a sham and not a genuine compromise to avoid winding up, so section 197A did not apply.
Palierakis v Atlas Carton & Litho (In Liquidation) and Others (JS1039/10) [2014] ZALCJHB 313; (2014) 35 ILJ 2839 (LC) (20 June 2014)
The court found that the sale agreement did not constitute a scheme of arrangement or compromise as contemplated by section 197A(1)(b) of the Labour Relations Act. There was no evidence of compliance with section 311 of the Companies Act, nor any objective facts supporting the existence of a compromise or arrangement. The mere labelling of the agreement as governed by section 197A was insufficient without factual basis. The applicant's employment had already been terminated prior to the transfer, and the third respondent did not assume liability for dismissed employees. Therefore, the prelimi…
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Jenkin v Khumbula Media Connexion (Pty) Ltd (D914/08) [2010] ZALCD 9 (2 June 2010)
The Labour Court held that the dismissal was procedurally unfair and that the respondent had taken over the business as a going concern under section 197A.
Edgars Consolidated Stores Ltd v South African Commercial and Catering and Allied Workers Union and Others (J1089/07) [2010] ZALC 70; [2010] 12 BLLR 1282 (LC) (18 May 2010)
The Labour Court held that an arbitration award survived a business transfer in insolvency and remained enforceable against the new employer under section 197A(4).
Chemical, Energy, Paper, Printing, Wood and Allied Workers Union v Cordero and Another (JS 546/2005) [2007] ZALC 84; (2008) 29 ILJ 1157 (LC) (8 November 2007)
The court found, based on the agreed facts, that the business of Keep Inks was transferred as a going concern to the second respondent, Hydro Colour Inks (Pty) Ltd. The second respondent operates from the same premises, uses the same equipment, employs the same workforce, and continues the same business activities. The transfer occurred in circumstances of insolvency, and section 197A of the Labour Relations Act applies. The effect is that the second respondent is automatically substituted in the place of Keep Inks in the contracts of employment of the retrenched employees, whose contracts we…
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Chemical, Energy, Paper, Printing, Wood and Allied Workers Union v Hydro Colour Inks (Pty) Ltd (JS546/2005) [2007] ZALC 119; [2011] 7 BLLR 655 (LC) (8 November 2007)
The Labour Court found that Keep Inks’ business had transferred as a going concern to Hydro Colour Inks, triggering section 197A substitution and liability.
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