ALERT EMPLOYMENT LAW - Cliffe Dekker Hofmeyr

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ALERT EMPLOYMENT LAW - Cliffe Dekker Hofmeyr
21 JUNE 2021

EMPLOYMENT LAW
ALERT
                                                   An employer’s recourse to lockout
                                                   and appoint replacement labour
                                                   Airline Pilots Association of South Africa
                                                   (ALPA-SA), as represented by the South African
                                                   Airways Pilots Association (SAAPA), a branch of
                                                   ALPA-SA obo Members v South African Airways
                                                   (SOC) Limited and Others (J398/21) [2021]
                                                   ZALCJHB 57.

                                                      KENYA

                                                   Should employers offer employees
                                                   incentives to get vaccinated?
IN THIS ISSUE >                                    As the second round of COVID-19 vaccinations
                                                   kicks off this month, the Kenyan government
                                                   aims to vaccinate at least 60% of the population
  Beware who disciplines and                       by June 2022.
  dismisses a deemed employee
  Many employers are all too aware of the
  potential pitfalls associated with engaging      What is a Rule 11 application in
  deemed employees, i.e. employees who earn        terms of the Labour Court rules?
  less than the annual earnings threshold set by
  the Minister of Employment and Labour from       Rule 11 of the Rules for the Conduct of
  time to time, which is currently R211,596.30     Proceedings in the Labour Court (the Labour
  and who, in terms of section 198A(3)(b) of the   Court Rules) is commonly referred to as
  Labour Relations Act, 1995 (LRA), are deemed     the “catch all” rule in view of the fact that it
  to be employees of the client for purposes of    enables litigants in the Labour Court to bring
  the LRA, and not employees of the temporary      an application for anything that is not expressly
  employment service (TES).                        provided for in the Labour Court Rules.

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ALERT EMPLOYMENT LAW - Cliffe Dekker Hofmeyr
EMPLOYMENT LAW

                                        Beware who disciplines and dismisses
                                        a deemed employee
                                        Many employers are all too aware               The TES had issued the employee with
                                        of the potential pitfalls associated           notice to attend a disciplinary enquiry
One of the grounds on                   with engaging deemed employees,                and notice of his dismissal. The TES and
                                        i.e. employees who earn less than the          SF argued that the TES was providing
which the employee
                                        annual earnings threshold set by the           these services in terms of its service
challenged the fairness                 Minister of Employment and Labour              level agreement with SF and that it was
of his dismissal was that               from time to time, which is currently          permitted to take this action given the
he had been disciplined                 R211,596.30 and who, in terms of               triangular relationship between the parties
                                        section 198A(3)(b) of the Labour               - the TES, SF and the employee.
and dismissed by the TES,               Relations Act, 1995 (LRA), are deemed to
arguing that the TES was                be employees of the client for purposes
                                                                                       The commissioner considered the decision
                                                                                       of the Constitutional Court in Assign
not his employer and as a               of the LRA, and not employees of the
                                                                                       Services (Pty) Limited v National Union
result, had no authority to             temporary employment service (TES).
                                                                                       of Metalworkers of South Africa & Others
discipline and dismiss him.             One of these potential pitfalls was the        2018 (6) SA 232 (CC) and its interpretation
                                        focus of a recent CCMA award in SA             of section 198A(3)(b). In particular, he
                                        Commercial Catering & Allied Workers           referred to and relied on the Constitutional
                                        Union obo Noda and Sovereign Foods             Court’s finding that when the deeming
                                        & Another (2021) 42 ILJ 929 (CCMA).            provision applies, the client becomes
                                        Sovereign Foods (SF) made use of the           the sole employer of the employee for
                                        services of a TES. The TES placed the          purposes of the LRA. The commissioner
                                        employee in question at SF’s workplace.        found that given the finding in Assign
                                        After a few years the employee was             Services and the fact that SF was the sole
                                        disciplined for misconduct and dismissed.      employer, the TES had no authority to
                                        The employee referred a dispute to the         discipline and dismiss the employee.
                                        CCMA challenging the substantive fairness
                                                                                       The commissioner did not accept the TES
                                        of his dismissal. It was common cause
                                                                                       and SF’s evidence that the disciplinary
                                        in the arbitration proceedings that the
                                                                                       enquiry was conducted by the TES, which
                                        employee was deemed to be an employee
                                                                                       made recommendations to SF and based
                                        of SF for purposes of the LRA. One of
                                                                                       on those recommendations, SF instructed
                                        the grounds on which the employee
                                                                                       the TES to proceed with the sanction of
                                        challenged the fairness of his dismissal was
                                                                                       dismissal. The commissioner was not
                                        that he had been disciplined and dismissed
                                                                                       convinced by this, finding that the TES and
                                        by the TES, arguing that the TES was
                                                                                       SF had not placed any evidence before
                                        not his employer and as a result, had no
                                                                                       him that showed that the TES made a
                                        authority to discipline and dismiss him.
                                                                                       recommendation to SF as to the outcome
                                                                                       and sanction and that SF endorsed
                                                                                       the recommendation.

2 | EMPLOYMENT LAW ALERT 21 June 2021
EMPLOYMENT LAW

                                            Beware who disciplines and dismisses
                                            a deemed employee...continued
                                            The commissioner found that the notice       found the employee’s dismissal
                                            served on the employee to attend the         substantively unfair and order that he be
The commissioner                            disciplinary enquiry was on the letterhead   reinstated with nine months’ backpay.
                                            of the TES, the witness statements
concluded that once                         indicated that the TES was in control of
                                                                                         This award is an important reminder
the deeming provision is                    the disciplinary enquiry and the outcome
                                                                                         to clients who engage the services of
                                                                                         deemed employees that if a TES is in any
triggered, the TES is no                    of the disciplinary enquiry was also
                                                                                         way involved in the disciplining of deemed
longer an employer of the                   issued on the letterhead of the TES. The
                                                                                         employees that the client must ensure
                                            commissioner reasoned that all of this
placed employee and the                     was an indication that the TES initiated
                                                                                         that any steps taken by the TES are at
client as the sole employer,                and concluded the disciplinary process,
                                                                                         the instance and on behalf of the client,
                                                                                         and that it is the client who must make
is the party who has the                    without SF having any say in the matter.
                                                                                         the decision to discipline and ultimately,
authority to discipline and                 The commissioner concluded that once         approve or endorse the sanction.
dismiss the employee.                       the deeming provision is triggered, the
                                            TES is no longer an employer of the          Gillian Lumb and Mbulelo Mango
                                            placed employee and the client as the
                                            sole employer, is the party who has
                                            the authority to discipline and dismiss
                                            the employee. In the circumstances,
                                            the commissioner

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  Michael Yeates ranked by CHAMBERS GLOBAL 2020 - 2021 as an up and coming employment lawyer.

3 | EMPLOYMENT LAW ALERT 21 June 2021
EMPLOYMENT LAW

                                        An employer’s recourse to lockout
                                        and appoint replacement labour
                                        Airline Pilots Association of South           employees. Facilitation was conducted
                                        Africa (ALPA-SA), as represented by the       by the CCMA. When the parties could
On 5 December 2019,                     South African Airways Pilots Association      not come to an agreement regarding
                                        (SAAPA), a branch of ALPA-SA obo              re-negotiating new terms and conditions
SAA was placed under
                                        Members v South African Airways (SOC)         of employment for its employees,
voluntary business rescue.              Limited and Others (J398/21) [2021]           SAA made various demands including
A rescue plan was adopted               ZALCJHB 57.                                   termination of the Regulating Agreement
on 14 July 2020. Pursuant               The Applicant, Airline Pilots Association
                                                                                      and any other collective agreements
                                                                                      between the parties. It also tabled revised
to the adoption of the                  of South Africa (ALPA-SA), as represented
                                                                                      salaries, and terms and conditions of
rescue plan, SAA issued                 by the South African Airways Pilots
                                                                                      employment. These were rejected.
                                        Association (SAAPA) represents about
a Notice in terms of                    89% of the Pilots employed by South
                                                                                      Thereafter, SAA referred a mutual
                                                                                      interest dispute to the CCMA. The parties
section 189(3) of the LRA               African Airways (SOC) Limited (SAA). Since
                                                                                      deadlocked. SAA then issued a notice
to all its employees.                   December 2001, SAA tried to renegotiate
                                                                                      of lockout in terms of section 64(1)(c) of
                                        and/or cancel a long-standing Collective
                                                                                      the LRA. In response, SAAPA sought a
                                        Agreement (Regulating Agreement)
                                                                                      final order from the Labour Court on an
                                        governing the pilots’ terms and conditions
                                                                                      urgent basis declaring the lockout unlawful
                                        of employment. It contended that
                                                                                      and unprotected. The court differed
                                        the agreement is unduly onerous and
                                                                                      and dismissed that application. SAAPA
                                        unsustainable given its financial position.
                                                                                      appealed, however, were unsuccessful.
                                        There was private arbitration held, the
                                        outcome of which was that the Regulating      Basis for SAAPA’s interdict
                                        Agreement could not be terminated, even
                                                                                      On 30 March 2021, SAAPA gave notice of
                                        on notice. It could only be rescinded
                                                                                      its intention to embark upon strike action
                                        through a subsequent agreement. This
                                                                                      in response to the lockout. SAA continued
                                        did not deter SAA. In December 2019, it
                                                                                      with the lockout. On April 2021, SAAPA
                                        launched applications in the Labour Court
                                                                                      approached the Labour Court on an
                                        and High Court to declare the agreement
                                                                                      urgent basis seeking an order declaring
                                        unconstitutional. These had not been
                                                                                      that the lockout effected by SAA was not
                                        determined as at the hearing before the
                                                                                      in response to a strike on its part, SAA is
                                        Labour Court.
                                                                                      not permitted to employ replacement
                                        Business rescue and section 189A LRA          labourers in place of its members who
                                        process at SAA                                were engaged in industrial action, and
                                                                                      SAA’s re-employment of pilots whose
                                        On 5 December 2019, SAA was placed
                                                                                      services were previously terminated to
                                        under voluntary business rescue. A
                                                                                      perform the functions of the striking pilots
                                        rescue plan was adopted on 14 July 2020.
                                                                                      constituted a contravention of section 76
                                        Pursuant to the adoption of the rescue
                                                                                      of the LRA.
                                        plan, SAA issued a Notice in terms
                                        of section 189(3) of the LRA to all its

4 | EMPLOYMENT LAW ALERT 21 June 2021
EMPLOYMENT LAW

                                        An employer’s recourse to lockout
                                        and appoint replacement labour
                                        ...continued

                                        Issue before the Labour Court                  question, were not initially locked-out,
                                                                                       but had refused to perform those duties.
                                        Essentially, the issue that the Labour Court
Essentially, the issue that             was whether SAA’s conduct infringes the
                                                                                       SAA was also not prohibited from doing so
                                                                                       even if it had initially imposed a lockout.
the Labour Court was                    provisions of section 76(1)(b) of the LRA,
                                                                                       When the SAAPA commenced its strike
whether SAA’s conduct                   and whether it was appropriate to interdict
                                                                                       action, SAA confirmed the continuation
                                        them from doing so pending the main
infringes the provisions                                                               of its lockout in response to that strike.
                                        application on 15 June 2021. Section 76
of section 76(1)(b) of                  provides that-
                                                                                       This entitled SAA to engage replacement
                                                                                       labour. SAAPA had not satisfied the
the LRA, and whether                      (1) An employer may not take into            requirements of the relief it sought, and
it was appropriate to                         employment any person-                   the application was dismissed.
interdict them from                       (a) to continue or maintain production       Employers may be justified in locking
doing so pending the                          during a protected strike if the whole   out employees who refuse to perform
main application on                           or a part of the employer’s service      their duties, even before receipt of a
                                              has been designated a maintenance        strike notice. The Labour Court held that
15 June 2021.
                                              service; or                              this lockout was protected and lawful.
                                                                                       Furthermore, the employer will have the
                                          (b) for the purposes of performing the
                                                                                       right to appoint replacement labour in
                                              work of any employee who is locked
                                                                                       respect of striking employees. After receipt
                                              out, unless the lockout is in response
                                                                                       of SAAPA’s strike notice, SAA did not issue
                                              to a strike.
                                                                                       a new lockout notice. It simply advised the
                                        The court held that SAA was permitted          union that the already imposed lockout
                                        to employ replacement labour even if it        would continue, and then appointed
                                        had initially instituted a lockout before      replacement labour.
                                        the commencement of the strike, on the
                                        ground that the individuals who would          Phetheni Nkuna and
                                        ordinarily have performed the work in          Mthokozisi Zungu

5 | EMPLOYMENT LAW ALERT 21 June 2021
EMPLOYMENT LAW

                                             KENYA

                                        Should employers offer employees
                                        incentives to get vaccinated?
                                        As the second round of COVID-19                  Other employees may refuse the
                                        vaccinations kicks off this month, the           vaccine for mental health reasons.
The Occupational Safety                 Kenyan government aims to vaccinate              These employees would be disqualified
                                        at least 60% of the population by                from enjoying the incentive available
and Health Act imposes an
                                        June 2022. Employers are also keen               whether monetary or non-monetary.
obligation on employers to              on their employees being vaccinated
                                                                                      2. Certain religions or beliefs held by
maintain the workplace in               so that they are safer at the workplace
                                                                                         employees may result in apprehension
a condition that is safe and            and to facilitate a full re-opening of the
                                                                                         in receiving the vaccine. Such
                                        economy. Is it permissible though for
without risks to the health             employers to offer employees incentives
                                                                                         employees would also be disqualified
of employees.                           to get vaccinated?
                                                                                         from enjoying the incentives that are
                                                                                         available to others.
                                        The Occupational Safety and Health Act
                                                                                      In the cases of Kenya Legal and Ethical
                                        imposes an obligation on employers to
                                                                                      Network on HIV & AIDS (KELIN) & 3 others
                                        maintain the workplace in a condition
                                                                                      v Cabinet Secretary Ministry of Health
                                        that is safe and without risks to the
                                                                                      & 4 others [2016] eKLR and PAO & 2 others
                                        health of employees. The Directorate
                                                                                      v Attorney General, Aids Law Project
                                        of Occupational Safety and Health
                                                                                      (Interested Party) [2012] eKLR, the courts
                                        Services also provides a non-binding
                                                                                      held that the right to health contains both
                                        recommendation that all workplaces
                                                                                      freedoms and entitlements and that the
                                        should develop infection control plans and
                                                                                      freedoms include the right to control
                                        policies aimed at minimising the spread
                                                                                      one’s health and body and the right to
                                        of COVID-19 in workplaces. For example,
                                                                                      be free from interference. An employer
                                        promotion of hygiene, observing social
                                                                                      should therefore be careful to balance
                                        distance techniques, and promotion of
                                                                                      its obligation to provide a safe workplace
                                        remote working amongst others. While
                                                                                      with the employee’s freedom and right to
                                        there is nothing preventing an employer
                                                                                      control one’s health and the right to be
                                        from encouraging its employees to be
                                                                                      free from interference.
                                        vaccinated, employers should, however, be
                                        careful when issuing blanket vaccination      The above cases may however be
                                        policies or incentives to employees since     distinguished because they did not deal
                                        such policies and incentives may easily be    with a pandemic. It remains to be seen
                                        considered discriminatory.                    whether a COVID-19 court case that
                                                                                      addresses the question of vaccination
                                        The Constitution and the Employment
                                                                                      especially for industries such as health
                                        Act protects employees from both direct
                                                                                      care which may have a strong case for
                                        and indirect discrimination on the basis of
                                                                                      their employees to be vaccinated for their
                                        their health status, religion, conscience,
                                                                                      own protection.
                                        belief or culture. Vaccination incentives
                                        may be considered discriminatory for the      In the meantime, employers may consider
                                        following reasons:                            collective consultation with employees
                                                                                      or their trade union representatives
                                        1.   Vaccination is not suitable for
                                                                                      to develop internal sensitisation plans
                                             everyone. Some of the vaccines are
                                                                                      which may contribute towards voluntary
                                             not suitable for certain individuals
                                                                                      take-up of the vaccine without having to
                                             with suppressed immune systems. An
                                                                                      give incentives.
                                             employee with certain allergies may
                                             also be advised against vaccination.
                                                                                      Desmond Odhiambo and
                                                                                      Peter Mutema

6 | EMPLOYMENT LAW ALERT 21 June 2021
EMPLOYMENT LAW

                                        What is a Rule 11 application in terms
                                        of the Labour Court rules?
                                        Rule 11 of the Rules for the Conduct              review proceedings on his behalf. The
                                        of Proceedings in the Labour Court                National Union of Metalworkers of South
On 19 July 2010, NUMSA                  (the Labour Court Rules) is commonly              Africa (NUMSA) accordingly instituted
                                        referred to as the “catch all” rule in view       review proceedings on 22 June 2010.
advised the employer’s
                                        of the fact that it enables litigants in the      On 19 July 2010, NUMSA advised the
attorneys of record                     Labour Court to bring an application for          employer’s attorneys of record (Macsteel)
(Macsteel) that it had                  anything that is not expressly provided           that it had uplifted the record and was
uplifted the record and                 for in the Labour Court Rules. The                in the process of having it transcribed.
                                        rule itself provides that interlocutory           However, the transcription of the record
was in the process of                   applications, or any other applications           was only completed in May 2011,
having it transcribed.                  incidental to, or pending proceedings             some 10 months after NUMSA had
                                        that are not specifically provided for in         uplifted it. When NUMSA subsequently
                                        the rules of the Labour Court should              filed an incomplete copy of the record
                                        be brought on notice and supported by             17 months later in December 2012, it failed
                                        affidavits. Over and above this, any other        to explain its incompleteness or the delay
                                        applications for directions that may be           in filing it. In January 2013, NUMSA filed
                                        sought from the Labour Court are also             the full record which was approximately
                                        included in this ambit.                           19 months after the record had been
                                                                                          transcribed and NUMSA once again
                                        In light of this, litigants may rely on Rule 11
                                                                                          failed to explain the excessive delay. In
                                        to dismiss a review application, referral
                                                                                          Macsteel’s answering affidavit, the issue of
                                        application or a regular application
                                                                                          NUMSA’s undue delay in filing the record
                                        in the Labour Court for failure to take
                                                                                          was raised in support of its contention
                                        further steps to prosecute a matter within
                                                                                          that the Labour Court dismiss the review
                                        reasonable timeframes provided for in
                                                                                          application. Unsurprisingly in reply, NUMSA
                                        the Practice Manual. This is commonly
                                                                                          failed to provide any explanation or seek
                                        referred to as a Rule 11 application.
                                                                                          condonation for the excessive delay and
                                        Conflicting caselaw                               denied prosecuting the review with “a high
                                                                                          degree of negligence.” Consequent to
                                        The position regarding Rule 11 applications
                                                                                          NUMSA’s delay, the review application was
                                        to dismiss a matter still remains tremulous
                                                                                          only heard on 24 February 2016, almost
                                        in the sphere of labour law because a
                                                                                          six years after the review application was
                                        number of conflicting judgments exist. We
                                                                                          instituted. Since NUMSA did not explain
                                        set out the position with reference to some
                                                                                          the delay in setting the matter down for
                                        of the most recent caselaw to outline the
                                                                                          hearing, Macsteel sought to persuade
                                        different approaches that the Labour Court
                                                                                          the Labour Court to dismiss the review
                                        has taken in terms of when and how a Rule
                                                                                          application because of the dilatory manner
                                        11 application may be initiated as well as
                                                                                          in which NUMSA had prosecuted it, and
                                        the approach that is most legally sound.
                                                                                          its total failure to explain the delays. The
                                        Macsteel Trading Wadeville v Van der              outcome, however, was that the Labour
                                        Merwe NO & others (2019) 40 ILJ                   Court refused to consider this issue on
                                        798 (LAC)                                         the basis that Macsteel had not brought
                                                                                          an application in terms of Rule 11 of
                                        In this case, the employee (Mr. Chiloane)
                                                                                          the Labour Court Rules to dismiss the
                                        was aggrieved by the outcome of an
                                                                                          review application.
                                        arbitration award and instructed the
                                        trade union representing him to institute

7 | EMPLOYMENT LAW ALERT 21 June 2021
EMPLOYMENT LAW

                                        What is a Rule 11 application in terms
                                        of the Labour Court rules?...continued
                                        The Labour Appeal Court appeal, stated         with by NUMSA. Furthermore, the Appeal
                                        that while there was nothing specific in the   Court stated that even if the Labour Court
This Labour Appeal Court                Labour Relations Act (LRA) that provided       was not inclined to strike the matter off
                                        for the dismissal of a review application      the roll, it ought to have given Macsteel an
emphasises the serious                  on the ground of undue delay, there were       opportunity to bring a Rule 11 application
consequences of delaying                certain provisions in the Rules that gave a    rather than delving into the merits of the
the prosecution of a                    reviewing court wide discretion to take any    review. Macsteel’s appeal was upheld,
review application.                     action to achieve the objectives of the LRA,   and the order of the Labour Court was set
                                        namely effective and expeditious dispute       aside and replaced with an order striking
                                        resolution. This Labour Appeal Court           NUMSA’s review application from the roll.
                                        emphasises the serious consequences
                                                                                       Mthembu v Commission for
                                        of delaying the prosecution of a review
                                                                                       Conciliation, Mediation & Arbitration &
                                        application. Litigants must therefore always
                                                                                       others (2020) 41 ILJ 1168 (LC)
                                        ensure that the time periods recorded in
                                        the LRA, the Rules and the Practice Manual     The court in Mthembu v Commission for
                                        are complied with because failure to do        Conciliation, Mediation & Arbitration &
                                        so could may in a court refusing to hear a     others (2020) 41 ILJ 1168 (LC) held that a
                                        review application which potentially had       Rule 11 application ought to be granted
                                        good prospects of success                      in the interests of expeditious resolution
                                                                                       of labour disputes. The court held that a
                                        The Labour Appeal Court held that the
                                                                                       party bringing a Rule 11 application once
                                        review application in this case had been
                                                                                       it has been placed in a position to file an
                                        archived and was regarded as lapsed,
                                                                                       answering affidavit and raise the issue of
                                        where NUMSA filed the review record
                                                                                       non-compliance defeats the concept of
                                        approximately 20 months after instituting
                                                                                       expeditious resolution of disputes. The
                                        the review application and where the
                                                                                       court accordingly held that:
                                        application was set down six years after
                                        being instituted. In such circumstances,         “Once a matter is deemed
                                        and in absence of NUMSA seeking                  withdrawn, and the reviewing
                                        condonation for the delay, the court             party does nothing by way of an
                                        a quo had no jurisdiction to determine           application to reinstate or to seek
                                        the review application. Further to this, the     condonation for non-compliance
                                        Labour Appeal Court held that a Rule 11          with the time frames for the matter
                                        application was not a prerequisite for the       to be resurrected, it cannot be
                                        Labour Court to consider whether the             expected of the opposing party to
                                        review ought to have been dismissed, or          wait endlessly. Instead the court
                                        struck off the roll, on the grounds of undue     was of the view that the only way of
                                        delay. In the absence of NUMSA applying          putting an end to the matter would
                                        for the reinstatement of the review or           be by way of a Rule 11 application
                                        seeking condonation for the undue delay          do avoid effectively placing
                                        in filing the record, the Labour Court was       the opposing party in a review
                                        obliged to strike the application from the       application at the mercy and whim
                                        roll on the grounds of lack of jurisdiction      of the reviewing party.”
                                        where the relevant provisions of the
                                        Practice Manual had not been complied

8 | EMPLOYMENT LAW ALERT 21 June 2021
EMPLOYMENT LAW

                                        What is a Rule 11 application in terms
                                        of the Labour Court rules?...continued
                                        Thus, the court in Mthembu held that            includes situations where the reviewing
                                        there is nothing that prevents the court        party has been notified of the opposing
The court in this case                  from considering and dismissing a               party’s intention to oppose the review
                                        review application in the face of a Rule 11     application, and no further steps were
consequently concluded                  application, even in circumstances where        taken either to prosecute or reinstate the
that the fact that the                  the review application is deemed to have        review application after it was deemed
employee’s review                       been withdrawn, given the wide discretion       withdrawn or if the reviewing party is
application was deemed                  of the Labour Court when interpreting           aware of the Rule 11 application and takes
                                        and applying the provisions of the Practice     no steps in either opposing the application
to be withdrawn did not                 Manual. It also held that it’s view is          or indicating an intention to pursue the
imply that the employer                 reinforced by the provisions of Rule 11(4)      review application.
was precluded from                      of the Labour Court Rules, which provides
                                                                                        SG Bulk A division of Supergroup South
                                        that in the exercise of its powers and the
immediately taking steps to                                                             Africa (Pty) ltd v Khumalo & another and
                                        performance of its functions, a reviewing
bring it to finality.                   court may act in a manner that it considers
                                                                                        Nkuna v NBCRFLI and others
                                        expedient in the circumstances to achieve       These two judgments were delivered
                                        the objects of the LRA. In other words a        together on 13 April 2021 by Honourable
                                        court may grant a Rule 11 application to        Judge Moshoana. The former case
                                        dismiss a review application in order to        deals with a referral by the ex-employee
                                        resolve a dispute as speedily as possible       (Mr. Khumalos) on 20 May 2019 who
                                        without having to wait for the reviewing        filed a statement of claim alleging an
                                        party to take further steps to bring the        unfair dismissal based on operational
                                        matter to finality or to resurrect the matter   requirements from the respondent-
                                        after it has been deemed withdrawn due to       employer (SG Bulk). SG Bulk then filed their
                                        non-compliance with timeframes.                 statement of response on 30 May 2019.
                                                                                        However, no further steps were taken
                                        The court in this case consequently
                                                                                        in terms of the parties holding a pretrial
                                        concluded that the fact that the
                                                                                        conference. A period of one year and
                                        employee’s review application was
                                                                                        four months lapsed until the applicant
                                        deemed to be withdrawn did not imply
                                                                                        launched a Rule 11 application to dismiss
                                        that the employer was precluded from
                                                                                        the referral on the basis of undue delay. In
                                        immediately taking steps to bring it to
                                                                                        the latter judgment Mr. Nkuna launched
                                        finality. Instead the employer was entitled
                                                                                        a review application on 19 March 2013,
                                        to continue with its affairs, without
                                                                                        but the review application was deemed
                                        having to wonder whether the employee
                                                                                        withdrawn because Nkuna failed to take
                                        would ever take steps to prosecute the
                                                                                        further steps to prosecute the matter
                                        review and bring the matter to finality.
                                                                                        for two years. Imperial Distribution then
                                        The court therefore dictated that in such
                                                                                        launched an application to dismiss the
                                        circumstances the Rule 11 application
                                                                                        review application.
                                        ought to be granted in the interests of
                                        expeditious resolution of labour disputes.      In the SG Bulk case, the court dismissed
                                                                                        the Rule 11 application on the grounds
                                        The court in Mthembu further laid out
                                                                                        that the Rule 11 application was
                                        examples of conduct which is inconsistent
                                                                                        inappropriate by virtue of the fact that
                                        with the expeditious resolution of a
                                                                                        Rule 11 applications only strictly cater for
                                        dispute and constitutes an intolerable
                                                                                        matters which are not provided for by the
                                        abuse of the court’s process. This conduct

9 | EMPLOYMENT LAW ALERT 21 June 2021
EMPLOYMENT LAW

                                         What is a Rule 11 application in terms
                                         of the Labour Court rules?...continued
                                         Labour Court rules. The court held that the      roll. Instead the court referred to the legal
                                         referral application was governed in terms       principle established in SAPU obo Mnisi
The court disagreed with                 of Rule 4(a) of the Labour Court rules           v SSSBC & Others. The court in this case
                                         which provides that parties are obliged to       established that:
the legal principle in                   hold a pre-trial conference 10 days after
Macsteel namely that, the                a statement of response is delivered and
                                                                                            “Once a case has been withdrawn,
                                                                                            such a case is not justiciable in a court
Labour Court is obliged                  failure to do so in terms of subrule (7)
                                                                                            of law. The dismissal of a review that
to strike the matter from                provides that the matter may be enrolled
                                                                                            has been withdrawn no longer affect
                                         for hearing on the directions of a Judge
the roll on the grounds                  where the Judge would most likely direct
                                                                                            the interest of the parties. It has no
of lack of jurisdiction or               parties to convene the pretrial.
                                                                                            practical effect to the parties, nor
                                                                                            does it serve the interests of justice.
allow the litigant affected              Moreover, the court held that the practice         A review application that is deemed
by the undue delay to file a             manual provides that if 6 months lapses            to be withdrawn does not exist. Put
separate Rule 11 application             without steps taken, the registrar must            differently, there is nothing before
                                         archive a file. The court was of the view          the court to be dismissed. This court
demonstrating why the
                                         that in order to achieve the dismissal of a        will have no jurisdiction to dismiss a
matter should be dismissed               referral, the respondent party must request        non-existent review application. A
or struck from the roll.                 the Registrar to archive the file instead of       review application that is set down for
                                         approach the court to seek a dismissal by          a hearing after having been deemed
                                         way of a Rule 11 application.                      withdrawn ought to be struck off the
                                                                                            roll rather than being dismissed.”
                                         In the latter judgment Mr. Nkuna launched
                                         a review application on 19 March 2013            Correct approach?
                                         but the review application was deemed
                                                                                          In terms of the most recent case law,
                                         withdrawn because Mr. Nkuna failed to
                                                                                          Rule 11 applications to dismiss an
                                         take further steps to prosecute the matter
                                                                                          application in the Labour Court are
                                         for two years. Imperial Distribution then
                                                                                          evidently dealt with differently. The
                                         launched an application to dismiss the
                                                                                          Macsteel case provides that the Labour
                                         review application.
                                                                                          Court is obliged to strike the matter
                                         The court disagreed with the legal               from the roll on the grounds of the lack
                                         principle in Macsteel namely that, the           of jurisdiction or may allow the litigant
                                         Labour Court is obliged to strike the matter     affected by the undue delay to file a
                                         from the roll on the grounds of lack of          separate Rule 11 application which would
                                         jurisdiction or allow the litigant affected by   demonstrate why the matter should
                                         the undue delay to file a separate Rule 11       be dismissed or struck from the roll in
                                         application demonstrating why the matter         instances where a review application is
                                         should be dismissed or struck from the           archived and consequently regarded as
                                                                                          lapsed as a result of a party’s failure to
                                                                                          comply with the Practice Manual. This is
                                                                                          even more pertinent where there is no

10 | EMPLOYMENT LAW ALERT 21 June 2021
EMPLOYMENT LAW

                                         What is a Rule 11 application in terms
                                         of the Labour Court rules?...continued
                                         substantive application for reinstatement      not justiciable in a court of law because
                                         of the review application, or no               there is essentially nothing before the
The correct approach                     condonation sought for the undue delay in      court to be dismissed. And technically the
                                         filing the record.                             court will have no jurisdiction to dismiss
therefore seems to be the
                                                                                        a review application which is deemed as
approach followed in the                 Additionally, the Mthembu case has
                                                                                        non-existent. A review application that is
                                         piggybacked off of the principle
SG Bulk and Nkuna cases.                 established in the Macsteel case but
                                                                                        set down for a hearing after having been
                                                                                        deemed withdrawn ought to be struck off
                                         has held that the opposing party in a
                                                                                        the roll rather than being dismissed.
                                         review application can institute a Rule 11
                                         application as soon as a matter is deemed      The correct approach therefore seems to
                                         withdrawn, and the reviewing party             be the approach followed in the SG Bulk
                                         does nothing by way of an application to       and Nkuna cases. Thus, a litigant should
                                         reinstate or to seek condonation for non-      opt to have the Registrar archive a matter
                                         compliance with the time frames for the        should there be delays in the prosecution
                                         matter to be resurrected. The reason for       thereof instead of making an application
                                         this is to prevent the opposing party from     to dismiss proceedings before the Labour
                                         waiting endlessly for the reviewing party to   Court. This is because essentially once
                                         act which is antithesis to the objectives of   a matter is deemed withdrawn the
                                         the LRA to resolve disputes expeditiously.     application loses its existence and the
                                                                                        court therefore has no jurisdiction to
                                         The SG Bulk case on the other hand has
                                                                                        dismiss the matter.
                                         provided that in the instances where an
                                         application is governed by the Rules of        When may a matter be archived?
                                         the Labour Court, a Rule 11 application
                                                                                        An application may be archived in the
                                         is unsuitable and should accordingly
                                                                                        case of an application in terms of Rule 7
                                         be dismissed. This is because Rule 11
                                                                                        or Rule 7A, when a period of six months
                                         applications only apply to applications
                                                                                        has elapsed without any steps taken by
                                         which are not governed by the Rules of
                                                                                        the applicant from the date of filing the
                                         the Labour Court. In this case the referral
                                                                                        application, or the date of the last process
                                         application was governed in terms of
                                                                                        filed. In the case of referrals in terms of
                                         Rule 4(a) of the Labour Court rules and was
                                                                                        Rule 6, when a period of six months has
                                         therefore dismissed. The Nkuna matter
                                                                                        elapsed from the date of delivery of a
                                         also dismissed the Rule 11 application in
                                                                                        statement of case without any steps taken
                                         terms of a review application and relied
                                                                                        by the referring party from the date on
                                         upon principles established in the case of
                                                                                        which the statement of claim was filed,
                                         SAPU obo Mnisi v SSSBC & Others. Instead
                                                                                        or the date on which the last process was
                                         of following the approach in Macsteel,
                                                                                        filed or when a party fails to comply with
                                         Moshoana J held that once a case has
                                                                                        a direction issued by a judge within the
                                         been deemed withdrawn, such a case is

11 | EMPLOYMENT LAW ALERT 21 June 2021
EMPLOYMENT LAW

                                         What is a Rule 11 application in terms
                                         of the Labour Court rules?...continued
                                         stipulated time limit. In addition to this         be filed within the time limits prescribed
                                         matters may be archived once the registrar         by rule 7. The Judge President will then
If the applicant fails to                has notified the applicant in terms of             allocate the file to a judge for a ruling, to
                                         rule 7A(5) that a record has been received         be made in chambers, on any extension
file the record within the               and may be uplifted, the applicant must            of time that the respondent should
prescribed period, the                   collect the record within seven days.              be afforded to file the record. Lastly, a
applicant will be deemed                 For the purposes of Rule 7A(6), records            review application may be archived and
to have withdrawn the                    must be filed within 60 days of the date           regarded as lapsed when the applicant
                                         on which the applicant is advised by the           has not ensured that all the necessary
application unless the                   registrar that the record has been received.       papers in the application are filed within
applicant has during that                If the applicant fails to file the record within   twelve (12) months of the date of the
period requested the                     the prescribed period, the applicant will be       launch of the application (excluding Heads
                                         deemed to have withdrawn the application           of Arguments) and the registrar is informed
respondent’s consent for
                                         unless the applicant has during that period        in writing that the application is ready for
an extension of time and                 requested the respondent’s consent for an          allocation for hearing. Where this time
consent has been given.                  extension of time and consent has been             limit is not complied with, the application
                                         given. If consent is refused, the applicant        will be archived and be regarded as lapsed
                                         may, on notice of motion supported by              unless good cause is shown why the
                                         affidavit, apply to the Judge President in         application should not to be archived or be
                                         chambers for an extension of time. The             removed from the archive.
                                         application must be accompanied by
                                         proof of service on all the other parties          Michael Yeates and Shanna Eeson
                                         and answering and replying affidavits may

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 For more information about our Employment Law practice and services in South Africa and Kenya, please contact:

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13 | EMPLOYMENT LAW ALERT 21 June 2021
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                                                                                                                          T +254 710 560 114
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