Mayana v Executive Mayor: Nelson Mandela Bay Metropolitan Municipality and Others - Appeal (CA09/2023) [2023] ZAECMKHC 106 (19 September 2023)

80 Reportability

Brief Summary

Labour — Contract — Termination — Misconduct at municipality — Appellant's employment terminated after confrontation with mayor and deputy mayor — Court a quo found termination lawful as employment contract did not require a hearing prior to termination — Appellant framed claim in contract and could not complain of alleged procedural unfairness — Appeal dismissed.

Comprehensive Summary

Summary of Judgment


1. Introduction


This matter was an appeal to the Eastern Cape High Court, Makhanda, against a judgment of the court a quo which dismissed an application for reinstatement arising from the termination of an employment-related contract. The appeal concerned whether the appellant’s services were terminated in accordance with the written agreement under which he was engaged by a metropolitan municipality.


The appellant was Siyanda Mayana, who had been engaged by the Nelson Mandela Bay Metropolitan Municipality to perform functions linked to the office of the Executive Mayor. The respondents were the Executive Mayor: Nelson Mandela Bay Metropolitan Municipality (first respondent), the City Manager: Nelson Mandela Bay Metropolitan Municipality (second respondent), the Nelson Mandela Bay Metropolitan Municipality (third respondent), and the Executive Director: Corporate Services, Nelson Mandela Bay Metropolitan Municipality (fourth respondent).


The procedural history reflected that the court a quo had found “nothing wrong” with the termination and dismissed the appellant’s claim. The appellant appealed with leave of the court a quo. At the commencement of the appeal hearing, the appeal court also had to consider an application to adduce new evidence and a related amendment to the notice of motion, arising from later developments affecting the mayor’s tenure.


The subject-matter of the dispute was framed as a contractual controversy concerning termination for alleged misconduct and the consequences of termination without a pre-termination hearing and without serving a contractual notice period. The appellant explicitly disavowed reliance on statutory unfair dismissal remedies and proceeded on a contractual footing.


2. Material Facts


The appellant concluded a written agreement with the Nelson Mandela Bay Metropolitan Municipality to perform tasks specified by the Executive Mayor as Strategic Advisor – Monitoring and Evaluation. The contract commenced on 1 December 2021 and was expressly linked to the term of office of the incumbent Executive Mayor. It provided that the appellant’s services would terminate automatically if the mayor’s services were terminated before expiry of her term and would also terminate automatically upon expiry of the mayor’s term.


It was undisputed that on 2 June 2022 the municipal council resolved to approach the High Court to set aside the appointment of the municipal manager, Dr Nqwazi, and to appoint Lonwabo Ngoqo as municipal manager with immediate effect. It was also undisputed that Dr Nqwazi instituted urgent proceedings on 4 June 2022 to interdict implementation of those resolutions, and that the matter was to be heard on 7 June 2022.


On 7 June 2022, the appellant was present at court when municipal counsel received a telephone call from the municipality’s attorney instructing counsel to consent to the order sought by Dr Nqwazi. The appellant overheard this and then, together with a councillor, approached the mayor at a restaurant where she was seated with the deputy mayor, the chief whip, the municipality’s legal advisor, and two attorneys from the municipality’s litigation firm.


From the restaurant encounter onwards, the parties’ versions diverged. The appellant asserted that he questioned the mayor’s conduct in relation to the council resolution and stated words to the effect that “we will deal with you politically and will remove you as the Mayor,” and that the deputy mayor misconstrued this as a threat of harm. The mayor and the municipality’s acting director of legal services disputed the appellant’s characterisation and relied on a video recording of the incident.


The judgment treated the video as demonstrating what occurred, including that the appellant confronted the mayor and pointed a finger at her; told the attorneys that if they proceeded with “that thing” they would be taken off the panel; stated “we are going to deal with all of you”; and repeated that he would remove the mayor and deputy mayor “politically,” describing it as “a promise.” The video also recorded statements by the deputy mayor outside the restaurant suggesting that she perceived a threat and would report it.


On 8 June 2022, the mayor addressed a memorandum to the municipal manager complaining about the appellant’s conduct, asserting that her office should not be a place where women feel unsafe, and instructing that the appellant’s contract be terminated. On the same date, the fourth respondent addressed a letter to the appellant notifying him that the contract was terminated with immediate effect. On 10 June 2022, the fourth respondent informed the appellant that although termination was effective from 8 June 2022, he would be compensated for two weeks in lieu of notice as contemplated by the termination clause.


In the appeal proceedings, new evidence was tendered that the municipality terminated the mayor’s services on 21 September 2022. The appellant sought, if successful on appeal, to adjust relief away from reinstatement and towards payment of salary and benefits up to the date on which the mayor’s term ended through termination.


3. Legal Issues


The central legal questions concerned the proper interpretation and application of the employment contract, particularly whether the termination complied with its provisions and whether the appellant had established a contractual right to a pre-termination hearing.


A key issue was whether, despite the absence of an express hearing clause, a right to be heard arose through an express, tacit, or implied term of the contract. This raised questions of law and of the application of legal tests for tacit or implied terms to the pleaded facts.


A further issue was whether a collective agreement concluded in the South African Local Government Bargaining Council (SALGBC) disciplinary framework was applicable to the appellant and incorporated into, or varied, the contract so as to require disciplinary proceedings prior to termination. This involved applying the statutory binding-effect framework in section 23 of the Labour Relations Act 66 of 1995 to the evidentiary material placed before the court.


Additional issues were whether the appellant could complain about a lack of “fair procedure” where he had elected to proceed in contract and expressly disavowed reliance on Labour Relations Act remedies, whether the municipality could terminate with immediate effect while paying notice pay, and whether the mayor or the fourth respondent had the authority to terminate the contract in light of the appellant’s reliance on provisions of the Local Government: Municipal Systems Act 32 of 2000.


4. Court’s Reasoning


The court began from the contractual structure governing termination, identifying clauses addressing misconduct and termination as central. It explained that the contract permitted termination in three broad ways: automatic termination linked to the mayor’s tenure; termination at the appellant’s initiative upon written notice; and termination at the municipality’s initiative for specified reasons (including misconduct), also upon written notice.


In dealing with misconduct, the municipality relied on clause 16.12, which treated as misconduct “any other behaviour or act which would give just cause for discipline.” The appellant argued that “discipline” in this clause required the institution of disciplinary proceedings before termination. The court rejected that construction, reasoning that if the parties intended to require disciplinary proceedings they would have said so expressly. It considered that importing such a requirement would yield an unbusinesslike and impractical result, particularly in the context of political appointments of this kind. The court interpreted clause 16.12 as empowering the municipality to treat such conduct as misconduct and, where it provided just cause for discipline, to terminate under the termination clause. On the court’s assessment of the restaurant conduct (as reflected on the video), the municipality had just cause to discipline.


The appellant’s principal contractual complaint was that the municipality breached the contract because it did not afford him a hearing before terminating. The court applied the principles articulated in South African Maritime Safety Authority v McKenzie 2010 (3) SA 601 (SCA), namely that a pre-dismissal hearing is required where conferred by statute or by contract, and that contractually such a right must arise expressly, tacitly, or by implication. It was common cause that the contract did not contain an express hearing clause. The court noted further that the appellant did not properly advance a pleaded case for a tacit term, and did not place facts before the court from which such a tacit term could be inferred. Relying on City of Cape Town (CMC Administration) v Bourbon-Leftley and Another NNO 2006 (3) SA 488 (SCA), the court emphasised that tacit terms are not lightly inferred and must be specifically alleged and supported by facts.


The court then considered whether an implied term arose by operation of law through incorporation of the SALGBC disciplinary collective agreement. The appellant’s affidavits asserted that the collective agreement applied to “all municipalities” and should be read with the contract, but the court found that he laid no factual or legal foundation demonstrating that the collective agreement applied to him. When counsel argued applicability on the basis that the appellant was simply an “employee” of the municipality, the court held that the missing component was proof that the appellant fell within the registered scope of the SALGBC, as required by the collective agreement’s own provisions.


The court also examined the collective agreement’s operation in relation to non-parties. It noted that while the agreement commenced on a specified date for parties, it required a ministerially determined date for operation in respect of non-parties, and the appellant provided no evidence that such a date had been determined. In addition, the court applied section 23 of the Labour Relations Act 66 of 1995, explaining that binding effect on non-union employees under section 23(1)(d) depends on satisfying three requirements: identification of employees, an express binding provision, and majority representation by the union parties in the workplace. On the evidence, the appellant established none of these requirements. In consequence, the court held that the appellant failed to prove that the collective agreement bound him and therefore failed to prove an implied contractual term entitling him to a hearing.


On the appellant’s broader complaint that termination was “abrupt” and procedurally unfair, the court reasoned that the appellant had elected to frame the claim in contract and relied on section 77(3) of the Basic Conditions of Employment Act 75 of 1997, while expressly disavowing reliance on the Labour Relations Act. The court therefore treated the dispute as one of contractual compliance rather than statutory fairness. It held that, on the contractual terms, the appellant’s right was to receive the applicable notice or its monetary equivalent, and not to a fairness enquiry detached from contract.


Applying the termination clause, the court held that the appellant was entitled to two weeks’ written notice (having been employed for more than six months but not more than one year). Where the municipality terminated with immediate effect, the consequence in contract was payment of remuneration for the notice period. The court found that the municipality paid the appellant the remuneration and benefits for the two-week period and thereby placed him in the position he would have been in had notice been served; accordingly, he had no contractual cause for complaint on that aspect.


On authority to terminate, the appellant relied on section 55(1)(g) and (h) of the Local Government: Municipal Systems Act 32 of 2000 to argue that only the municipal manager could maintain discipline and ensure labour compliance. The court considered the evidence showing that the mayor instructed the municipal manager to terminate and that the fourth respondent communicated termination to the appellant. It held that termination occurred on behalf of the municipality, and that it was immaterial which representative communicated or effected termination, given that the contract required termination by the municipality and that the steps reflected action on its behalf.


Finally, the court addressed the application to adduce new evidence relating to the termination of the mayor’s services on 21 September 2022. It considered that the appellant was entitled to bring the development to the court’s attention, though it accepted criticism about the form and extent of the application papers. It granted the admission of the new evidence and allowed the amendment to the notice of motion, but directed that each party bear its own costs for the interlocutory applications.


5. Outcome and Relief


The court granted the appellant’s application to adduce new evidence and allowed the amendment of the notice of motion reflecting that reinstatement was no longer sought but that payment to 21 September 2022 would be pursued if the appeal succeeded. It ordered that each party pay its own costs relating to the application to adduce new evidence and the respondents’ striking out application.


On the merits, the appeal was dismissed. The court ordered the appellant to pay the respondents’ costs of appeal, including the costs of two counsel where employed.


Cases Cited


South African Maritime Safety Authority v McKenzie 2010 (3) SA 601 (SCA).


City of Cape Town (CMC Administration) v Bourbon-Leftley and Another NNO 2006 (3) SA 488 (SCA).


Old Mutual Ltd and Others v Moyo and Another (2020) 41 ILJ 1085 (GJ).


SA Municipal Workers Union obo Tswaing Local Municipality and Others (2022) 43 ILJ 2754 (LAC).


E C Chenia and Sons CC v Lamé and van Blerk [2006] ZASCA 10; 2006 (4) SA 574 (SCA).


Legislation Cited


Labour Relations Act 66 of 1995, section 23(1) and section 23(3).


Basic Conditions of Employment Act 75 of 1997, section 77(3).


Local Government: Municipal Systems Act 32 of 2000, section 55(1)(g) and section 55(1)(h).


Rules of Court Cited


No rules of court were cited in the judgment.


Held


The court held that the appellant failed to establish that his contract entitled him to a pre-termination hearing, whether expressly, tacitly, or by implication. The contract contained no express hearing provision, and no factual basis was pleaded or proved from which a tacit term could be inferred.


The court further held that the appellant failed to prove that the SALGBC disciplinary collective agreement applied to him or was binding upon him, including because he did not demonstrate that he fell within the registered scope of the SALGBC, did not establish ministerial commencement for non-parties, and did not satisfy the statutory conditions for binding non-members under section 23(1)(d) of the Labour Relations Act.


The court held that the municipality’s termination complied with the contract insofar as the appellant received payment equivalent to the two-week notice period required under the termination clause, and that he could not invoke general procedural unfairness when he had elected to pursue a purely contractual claim and expressly disavowed reliance on statutory unfair dismissal remedies.


The court also held that termination was effected on behalf of the municipality and that it was immaterial which municipal representative communicated termination where the evidence showed action pursuant to the municipality’s authority chain.


LEGAL PRINCIPLES


The judgment applied the principle that an employee’s entitlement to a pre-dismissal hearing arises in contract only where such a right is conferred by statute or by the employment contract, and contractually only where the term is express, tacit, or implied in the proper legal sense, as articulated in South African Maritime Safety Authority v McKenzie 2010 (3) SA 601 (SCA).


It applied the distinction between tacit terms (inferred from the actual or imputed intention of the parties) and implied terms (introduced by operation of law), and emphasised that tacit terms are not lightly inferred and must be specifically alleged and supported by facts, consistently with City of Cape Town (CMC Administration) v Bourbon-Leftley and Another NNO 2006 (3) SA 488 (SCA).


The judgment applied section 23 of the Labour Relations Act 66 of 1995 to assess whether a collective agreement binds an employee and varies the employment contract, and held that absent proof of the statutory and factual prerequisites for binding effect—particularly in relation to scope, identification, express binding, and majority representation—no incorporation or variation could be established.


It further applied the contractual principle that where a contract requires notice of termination, an employer who terminates with immediate effect may satisfy the contractual obligation by paying remuneration and benefits in lieu of notice, placing the employee in the position they would have occupied had notice been served, and that a party who elects to litigate on a purely contractual basis cannot, without more, seek remedies premised on statutory fairness frameworks that were expressly disavowed.

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[2023] ZAECMKHC 106
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Mayana v Executive Mayor: Nelson Mandela Bay Metropolitan Municipality and Others - Appeal (CA09/2023) [2023] ZAECMKHC 106 (19 September 2023)

FLYNOTES:
LABOUR – Contract –
Termination

Misconduct
at municipality – Appellant confronting mayor and deputy
major at restaurant – Court a quo found nothing
wrong with
the termination – Employment contract did not expressly
provide for hearing prior to termination –
No basis for
reading the collective agreement with the employment contract and
there was no implied term that entitled him
to a hearing –
Appellant elected to frame his claim in contract and cannot
complain about the alleged unfairness of
the procedure –
Appeal dismissed.
IN
THE HIGH COURT OF SOUTH AFRICA
(EASTERN
CAPE DIVISION, MAKHANDA)
Case No: CA09/2023
In
the matter between:
SIYANDA
MAYANA

APPELLANT
and
EXECUTIVE MAYOR:
NELSON MANDELA BAY

FIRST Respondent
METROPOLITAN
MUNICIPALITY
CITY MANAGER: NELSON
MANDELA BAY

SECOND Respondent
METROPOLITAN
MUNICIPALITY
NELSON MANDELA BAY:
NELSON MANDELA

THIRD Respondent
METROPOLITAN
MUNICIPALITY
EXECUTIVE DIRECTOR:
CORPORATE

FOURTH Respondent
SERVICES NELSON
MANDELA BAY
METROPOLITAN
MUNICIPALITY
APPEAL JUDGMENT
Bloem
J
[1]
At the centre of this appeal is whether the appellant’s
services
were terminated in accordance with the agreement in terms
whereof he was employed.  The court
a quo
found nothing
wrong with the manner in which his services were terminated and
dismissed his application for reinstatement.
It is against the
judgment and order of the court
a quo
that he now appeals with
the leave of the court
a quo
.
[2]
The appellant concluded a written agreement with the Nelson Mandela
Bay
Metropolitan Municipality (the municipality), the third
respondent, to perform tasks, as specified by the Executive Mayor of
the
municipality (the mayor), the first respondent, as Strategic
Advisor-Monitoring and Evaluation (the employment contract). The
employment
contract commenced on 1 December 2021 and was linked to
the term of office of the incumbent mayor. The parties agreed that
the
appellant’s services would automatically terminate should
the mayor’s services be terminated before the expiry of her

term as mayor and that the employment contract would automatically
terminate on expiry of the mayor’s term of office.
[3]
It was undisputed that on 2 June 2022 the municipality’s
council
resolved firstly, to approach the High Court to set aside the
appointment of its municipal manager, Dr Nqwazi; and secondly,

to appoint Lonwabo Ngoqo as municipal manager with immediate effect.
Before the municipality could give effect to the resolutions,

Dr Nqwazi instituted an application on 4 June 2022 wherein she
sought an order that the municipality be interdicted from giving

effect to the above resolutions.  That application was on the
roll of cases to be heard on 7 June 2022.  The appellant
was at
court when the municipality’s counsel received a telephone call
from the municipality’s attorney instructing
her to consent to
the order sought by Dr Nqwazi.  The appellant overheard the
conversation between the municipality’s
counsel and attorney.
He was dismayed at what he had heard.  He, accompanied by
a councillor, Lawrence Troon, approached
the mayor at a restaurant.
She was in the company of the deputy mayor, the chief whip of the
municipality’s council,
the municipality’s legal advisor
and two attorneys from the firm which represented the municipality in
the litigation with
Dr Nqwazi.  It is from this stage that the
parties’ versions differ.
[4]
The appellant’s version was that, upon their arrival at the
restaurant,
‘I asked the First Respondent why she was acting
contrary to the Council Resolution of 2 June 2022 to appoint Mr
Lonwabo
Ngoqo as a City Manager.  The First Respondent’s
response was that she will do what she says as she gives instructions

as the Executive Mayor’ and his words to the mayor, the deputy
mayor and the chief whip were ‘that we will deal with
you,
politically and will remove you as the Mayor’.  He said
that the deputy mayor insinuated that he was threatening
to harm her
when he was referring to removing her and the mayor from leading the
municipality as they were, according to him, ‘clearly
not
acting in the best of interests of the Municipality, and defying the
lawfully taken Resolution of the Municipal Council of
2 June 2022’.
[5]
The mayor and the municipality’s acting director of legal
services,
Nobuntu Siganga, said they were perturbed by the
appellant’s version, which was intended to mislead the court
and to downplay
his violence at the restaurant.  They relied on
a video which someone had taken inside and outside the restaurant
when the
appellant and Mr Troon confronted the mayor and her
party.  The video consists of two parts.  The first part
shows
what happened inside the restaurant while the second part shows
what happened outside the restaurant.  The video showed that,

inside the restaurant, the appellant and Mr Troon approached the
table at which the mayor and her party were sitting.  What

follows hereunder is a transcription of what can be seen and heard on
the video:

Appellant:
Why are you
doing this?  We are not conceding anything.  I
am telling you now.  And we will deal with you after this thing
(pointing
a finger at the mayor).
Appellant addressing Mr Troon
:
Let us wait for these other people to come here.
The
appellant then sat down at the same table shared by the mayor and her
party and said
:  There is going to be no instruction to say
that those people must concede.  That is a non-sensical
instruction.
Mayor:

It
is fine.
Appellant:
It
is not
fine.
Mayor:

There is.  No, there is. No, there is.
Appellant:
(got
up and said, pointing a finger at the mayor).  You voted
for Ngoqo.  Now you want to distance yourself from that
decision.
It is not going to happen.
Mayor:

There is an instruction.
Appellant:
(to
the municipality’s attorneys). We are telling you now, if
you go ahead with that thing, we will take you off the panel.
I
am telling you now, pointing a finger at the attorneys.
Mayor:

(to the attorneys).  You do what the mayor says.
Mayor:

(to the appellant):  You can jump up and down.
The
appellant and Mr Troon then focussed their attention on the deputy
mayor and the chief whip.
Mr
Troon:
(to
the chief whip).  You are not worth being the chief whip
because you sold out the municipality.
Deputy
mayor:
(asking the appellant).  Are you saying that
you will deal with
me?
Appellant:
We
are going
to deal with all of you.
The
appellant and Mr Troon told the attorneys not to proceed with “that
thing” lest they be taken off the panel.
Mr
Troon:
(to
the attorneys).  You will be off that panel.  You come
here to mix with these thieves.
Deputy
mayor:
(to the appellant).  If you say you will deal
with me, anything
that happens to me, you will answer for it.
Appellant:

No, no.
You know what I mean.  Politically we will remove
you as deputy mayor.  We will deal with you politically.
Mayor:

(to the appellant).  And you are going out of my office.
Appellant:

Let us see.
Are you bigger than council?
The
deputy made a call reporting to a person that an advisor in the
mayor’s office was threatening them.
The
appellant left briefly.
Appellant:

(on his
return).  Let me repeat it.  Politically, we are
going to remove you as mayor, so also the deputy mayor.  This is

a promise.
Deputy
Mayor:
I am reporting the threat to a senior police officer.
The
appellant and Mr Troon then left the restaurant
.’
[6]
The video furthermore shows that outside the restaurant, the mayor,
deputy
mayor and unknown persons are seen with the appellant and Mr
Troon, accompanied by two other males.  Mr Troon can be heard

saying that the mayor gave instructions that the municipality must
concede Dr Nqwazi’s application.  He enquired from
where
she obtained the mandate to make that concession.  The deputy
mayor is heard saying that her family would know who was
responsible
for her death if she was killed.  She said that she would be the
third councillor to be shot and killed by the
appellant.
[7]
The court
a quo
correctly identified clauses 16 and 17 of the
employment contract as the ones applicable to the dispute between the
municipality
and the appellant.  The relevant parts of those
clauses read as follows:

16.
Misconduct
The contractor shall be
guilty of misconduct is he/she:
16.1
commits a breach of any of the provisions of this agreement;
16.2
does not obey a lawful order given by any person having authority to
give it, or disregards
or wilfully neglects to execute such order, or
by word or deed shows resistance;
.
. .
16.12
engages in any other behaviour or commits any other act which would
give just cause for discipline.
17.
Termination of Contract
The contract will
terminate:
17.1
automatically and without notice on expiry of the term
referred to in the contract, subject to any extension or renewal.
It is specifically recorded that the contract shall not
be
interpreted in such a manner as to created expectations of a
permanent appointment, extension or renewal.  The Employer’s

decision not to renew or extend the contract shall not constitute an
unfair dismissal and the Contractor shall not be entitled
to any form
of compensation;
17.2
at the Contractor’s initiative on the following basis:
17.2.1
one (1) week’s written notice if the Contractor has been
employed for six (6) months or
less; or
17.2.2
two (2) weeks written notice if the Contractor has been employed for
more than six (6) months but
not more than one (1) year; or
17.2.3
four (4) weeks written notice if the contractor has been employed for
one (1) year or more.
17.3
at the Employer’s initiative, for reasons relating to
misconduct, incapacity, unacceptable
or unsatisfactory performance,
breach, or for any other reason recognised by law as sufficient, on
the following basis:
17.3.1
one (1) week’s written notice if the Contractor has been
employed for six (6) months or
less; or
17.3.2
two (2) weeks’ written notice if the Contractor has been
employed for more than six (6) months
but not more than one (1) year;
or
17.3.3
four (4) weeks’ written notice if the contractor has been
employed for one (1) year
or more.’
[8]
The court
a quo
found that the appellant was given notice of
the termination of the employment contract in terms thereof and that
he had accordingly
failed to show that the termination of the
employment contract was unlawful.  The finding of the court
a
quo
in that regard was criticised before us.
[9]
The context of the termination of the employment contract was that it
could be terminated either automatically; by the appellant, as the
employee; or by the municipality, as the employer.  The

employment contract could automatically terminate in terms of clause
17.1 on the expiry of the period of the employment contract.

Clause 17.1 had to be read with clause 2, which provided that the
duration of the employment contract was linked to the term of
office
of the then incumbent mayor.  It meant that, if the mayor’s
services were terminated before the conclusion of
her term of office,
the employment contract also terminated on the date of the
termination of the mayor’s services.
[10]
Clause 17.2 provided for the termination of the employment contract
at the instance of
the appellant.  In terms thereof, he was not
required to give a reason for such termination.  What was
required of him
was to give written notice to the municipality of his
intention to terminate the employment contract.  The different
periods
of the notice depended on the length of his service.  If
he was employed for six months or less, he was required to give one

week’s written notice to the municipality, two weeks’
written notice if he was employed for more than six months but
not
more than one year; and four weeks’ written notice if he was
employed for more than one year.  The purpose of requiring
the
appellant to give notice was obviously for the benefit of the
municipality.  The municipality would, once it knew that
the
appellant would terminate the employment contract, firstly, establish
whether the appellant was up to date with the execution
of the duties
that he was required to perform for the mayor and, if he was not, to
ensure that he performed those duties during
the notice period; and
secondly, make arrangements for the appellant’s replacement.
Because the notice period was for
the municipality’s benefit,
nothing prevented the municipality from releasing the appellant from
serving the full notice
period, provided that the appellant was paid
his full salary and other benefits for the notice period.
[11]
Clause 17.3 provided for the termination of the employment contract
at the instance of
the municipality.  The notice periods in that
case were the same as in the case where the termination of the
employment contract
was at the appellant’s instance. The
difference between clauses 17.2 and 17.3 was that, where the
municipality terminated
the employment contract, it had to have a
reason to do so.  The listed reasons were ‘misconduct,
incapacity, unacceptable
or unsatisfactory performance, breach, or
for any other reason recognised by law as sufficient’.
[12]
The
municipality relied on clause 16.12 for the contention that on 7 June
2022 the appellant misconducted himself for the manner
in which he
confronted the mayor and deputy mayor at the restaurant about the
instruction to counsel not to oppose Dr Nqwazi’s
application.
In terms of clause 16.12, the appellant shall be guilty of misconduct
if he engaged in behaviour which would
give the municipality just
cause to discipline him.  Mr Ndamase, counsel for the
appellant, submitted that the text in
clause 16.12 must be understood
to mean in that, in the event of the appellant’s behaving or
acting in a manner that gave
just cause to discipline him, the
municipality was required to institute disciplinary proceedings
against him.  The submission
was that the word ‘discipline’
equated to disciplinary proceedings.  That submission cannot be
sustained.
If the parties had intended disciplinary proceedings
to be instituted against the appellant once the municipality had just
cause
to discipline him, the parties would most certainly have said
so in the employment contract.  The interpretation that was
sought to be given the word ‘misconduct’ in the context
of clause 16.12 would lead to absurdity and an unbusinesslike

result.  Such an interpretation would have had the result that,
in cases where the municipality made political appointments
of
employees, like in the case of the appellant, on the same terms as in
the present matter, it would have been required, in every
instance
where allegations of misconduct were raised against those employees,
to institute disciplinary proceedings.  That
would be the case
even though the municipality, for reasons of its own, may not have
wished to pursue such matters or institute
disciplinary
proceedings.
[1]
In my
view, the purpose of clause 16.12 was to give the municipality the
right to terminate the employment contract once
the appellant’s
behaviour gave rise to just cause for discipline.  In such a
case the appellant “
shall
be guilty of misconduct
”.
The municipality could then, in terms of clause 17.3 of the
employment contract, terminate the employment contract.
In my
view, based on the appellant’s conduct at the restaurant, the
municipality had just cause to discipline him.
[13]
The
appellant’s case was that the municipality breached the terms
of the employment contract, in that he should have been
given a
hearing before it terminated the employment contract.  The law
relevant to the entitlement of a person to a hearing
before the
termination of his or her services was articulated in
South
African Maritime Safety Authority v McKenzie.
[2]
Therein Wallis AJA (as he then was) stated that an
employee is entitled to a pre-dismissal hearing where that right
is
conferred by a statute or by an employment contract.  The right
to be heard before an employee’s services are terminated
arises
contractually where the contract provides for it either expressly,
impliedly or tacitly.
[3]
The
appellant was required to prove that the employment contract
contained an express, implied or tacit provision that entitled
him to
such a hearing.
[14]
It is
common cause that the employment contract did not expressly provide
that the appellant was entitled to a hearing before the
termination
of the employment contract at the municipality’s instance.
The appellant also did not allege that his alleged
entitlement to a
hearing arose from an implied or tacit term of the employment
contract.  Wallis AJA explained the difference
between implied
and tacit terms as follows in
McKenzie
:
[4]

An
implied term properly so called is a term that is introduced into the
contract as a matter of course by operation of law, either
the common
law, trade usage or custom, or statute, as an invariable feature of
such a contract, subject only to the parties’
entitlement in
certain, but not all, instances to vary it by agreement.  Where
reliance is placed on such a term the intention
of the parties will
not come into the picture and the issue is the purely legal one, of
whether in those circumstances in relation
to a contract of that
particular type the law imposes such a term on the parties as part of
their contract.  A tacit term
is a term that arises from the
actual or imputed intention of the parties as representing what they
intended should be the contractual
position in a particular situation
or, where they did not address their minds to that situation, what it
is inferred they would
have intended had they applied their minds to
the question.

[15]
In
City
of Cape Town (CMC Administration) v Bourbon-Leftley and Another
NNO
[5]
Brand
JA stated that a tacit term is not easily inferred by courts.
That is so since courts are afraid that they might make
contracts for
the parties or supplement their agreements merely because it appears
reasonable or convenient to do so.  A party
who seeks to rely on
a contract which was tacitly concluded, must specifically allege that
the contract relied upon is a tacit
one.
[6]
The same principle applies to a party who seeks to rely on a tacit
term of a contract.  The appellant did not place
facts before
the court from which a tacit term, that the employment contract
contained a term which entitled him to a hearing before
the
municipality could terminate the employment contract, could be
inferred.  He accordingly cannot claim that he and the

municipality tacitly agreed that he was entitled to such a hearing.
[16]
Since the appellant has failed to prove that the agreement contained
an express or tacit
term that entitled him to a hearing before the
employment contract was terminated at the municipality’s
instance, I will
now consider whether the employment contract
contained, by operation of law, an implied term to that effect. Mr
Ndamase relied
on paragraphs 56, 57 and 58 of the appellant’s
founding affidavit for the submission that the terms of a collective
agreement
concluded in the South African Local Government
Bargaining Council (the SALGBC) were incorporated in the employment
contract.
That collective agreement was concluded on 6 February
2018 between the South African Local Government Association and two
trade
unions, the Independent Municipal and Allied Trade Union
(IMATU) and the South African Municipal Workers Union (SAMWU).  The

purpose of that collective agreement was stated in clause 5.1 thereof
to be the establishment of a fair, common and uniform procedure
for
the management of employee discipline.
[17]
Paragraphs 56, 57 and 58 of the appellant’s founding affidavit
read as follows:

56.
I also humbly request that the provisions of my employment contract
be read together with the
provisions of the Disciplinary Procedure
Collective Agreement of 2018 to 2023 (“the Collective
Agreement”) which is
applicable to all municipalities,
including the Second Respondent herein. A copy of the said Collective
Agreement is attached hereto
marked SM6 and to which this
Honourable Court is respectfully referred.
57.
I further wish to state that at the hearing of this matter I shall
place reliance on the
contents of the entire contents of the said
Collective Agreement, particularly clauses 5 to 7 thereof.
58.
In summary, from the said clauses, it is clear that the application
of the said disciplinary
procedure is peremptory, that the rules of
natural justice and fair procedure shall be adhered to, and that any
allegation of misconduct
against any employee must be brought to the
attention of the Municipal Manager or his authorised representative
who shall proceed
with disciplinary proceedings, if satisfied that
there is a prima facie cause to believe that a case of misconduct has
been committed.’
[18]
It is apparent from the above quoted paragraphs that the only basis
upon which the appellant
contended that the employment contract
should ‘be read together with the provisions of the
Disciplinary Procedure Collective
Agreement’ is because,
according to him, the collective agreement ‘is applicable to
all municipalities, including the
Second Respondent herein’.
No factual or legal basis was laid in the appellant’s
affidavits for the contention
that the collective agreement applied
to him.  The heads of argument drafted on behalf of the
appellant also did not set out
the basis upon which the appellant
sought the collective agreement to be read with the employment
contract.
[19]
At the hearing Mr Ndamase’s attention was drawn to clause 1 of
the collective agreement,
which provided that the terms thereof
‘shall be observed by all Employers and Employees who fall
within the registered scope
of the SALGBC’.  Counsel then
submitted that the collective agreement applied to the appellant
because he was the municipality’s
employee.  The
submission was that, in terms of clause 1 of the collective
agreement, the municipality, as the employer, and
the appellant, as
the employee, were required to observe the terms of the collective
agreement.  What was missing from that
submission was whether
the appellant fell within the registered scope of the SALGBC.
He may or he may not.  If he fell
within the registered scope of
the SALGBC, the disciplinary proceedings, which provided that he was
entitled to a hearing before
the termination of the employment
contract, would have applied to him.  If he did not fall within
the registered scope of
the SALGBC, the collective agreement would
not have applied to him.  The appellant did not demonstrate, in
his affidavits,
heads or argument and at the hearing, that the
appellant fell within the registered scope of the SALGBC.  There
was no factual
basis upon which reliance could be placed on clause 1
of the collective agreement.  The appellant accordingly failed
to establish
that the collective agreement was binding on him.
[20]
Clause 4 of the collective agreement referred to the period of
operation of the collective
agreement.  Clause 4.1 provided that
the collective agreement commenced on 1 February 2018 in respect of
the parties thereto.
In respect of non-parties, clause 4.2
provided that the collective agreement would operate from a date to
be determined by the
Minister of Labour.  The appellant adduced
no evidence to prove that the Minister of Labour had indeed
determined the date
when the agreement became operative in respect of
non-parties.  For that reason, it cannot be found that the
collective agreement
came into operation in respect of non-parties,
like the appellant.
[21]
Clause 23 of the
Labour Relations Act 66 of 1995
provides for the
legal effect of collective agreements.
Section 23(1)
and (3)
reads as follows:

(1)
A
collective agreement
binds–
(a)
the parties to the
collective
agreement
;
(b)
each party to the
collective
agreement
and the members of
every other party to the
collective
agreement
, in so far as the
provisions are applicable between them;
(c)
the members of a registered
trade
union
and the employers who are
members of a registered
employers'
organisation
that are party to
the
collective agreement
if
the
collective agreement
regulates-
(i)
terms and conditions of employment; or
(ii)
the conduct of the employers in relation
to their
employees
or the conduct of the
employees
in relation to their employers;
(d)
employees
who are not members of the registered
trade
union
or
trade
unions
party to the agreement if–
(i)
the employees are identified in the
agreement;
(ii)
the agreement expressly binds the
employees; and
(iii)
that
trade
union
or those
trade
unions
have as their members the
majority of
employees
employed by the employer in the
workplace
.
(2)
. . .
(3)
Where applicable, a
collective
agreement
varies any contract of
employment between an
employee
and employer who are both bound by the
collective
agreement
.

[22]
In terms of
section 23(1)
(d)
, for a collective agreement to
bind an employee who is not a member of the registered trade unions
party to that collective agreement,
three conditions have to be
fulfilled.  The first condition is that the employees must be
identified in the collective agreement.
In this case the
employees who were identified in the collective agreement were
‘employees who fall within the registered
scope of the
SALGBC’.  As pointed out above, the appellant failed to
establish that he fell within the registered scope
of the SALGBC.
The second condition is that the collective agreement must expressly
bind the employees.  Employees referred
to in
section
23(1)
(d)
(ii) are those employees who are not members of the
registered trade union parties who are nevertheless bound by the
collective
agreement, by virtue of them falling in the registered
scope of the SALGBC.  Employees are not bound by the collective
agreement
if they do not fall in the registered scope of the SALGBC.
It has been not established that the appellant fell within that

scope.  The third condition is that the members of the trade
unions which concluded the collective agreement with the municipality

must be the majority of employees and employed by the municipality in
the workplace.  There was no evidence that members of
IMATU and
SAMWU were the majority of employees employed by the municipality in
the workplace.  In the circumstances, the appellant
has failed
to establish the fulfilment of any one of the three conditions.
In the circumstances, he did not establish that
the collective
agreement was binding on him.
[23]
Since the appellant failed to prove a factual basis for ‘reading
the collective agreement
with the employment contract’, it must
be found that he failed to prove that the employment contract
contained an implied
term that entitled him to a hearing before the
municipality terminated the employment contract.  The appellant
failed to satisfy
the requirements of the test for impliedly or
tacitly importing a term into the employment contract that entitled
him to a hearing
before the municipality terminated the employment
contract.  It is accordingly found that the employment contract
did not
contain a term that entitled the appellant to a hearing
before the municipality terminated the employment contract.
[24]
The second issue to be determined is whether the municipality was, in
the words of the
appellant, ‘entitled to abruptly terminate the
employment relationship and without following a fair procedure’.

The appellant elected to frame his claim in contract.  He relied
on
section 77(3)
of the
Basic Conditions of Employment Act 75 of
1997
, which provides that the Labour Court has concurrent
jurisdiction with the civil courts to hear and determine any matter
concerning
a contract of employment, irrespective of whether any
basic condition of employment constitutes a term of that contract.
The appellant expressly disavowed reliance on the
Labour Relations
Act and
the remedies provided therein.  His claim was
accordingly not that the municipality unfairly terminated his
services when
it informed him that the employment contract was
terminated with immediate effect without giving him two weeks’
notice.
He can accordingly not complain about the alleged
unfairness of the procedure followed.
[25]
In terms clause 17.3 of the employment contract, once the
municipality has terminated the
employment contract on any of the
bases contained therein, the appellant was entitled to two weeks’
written notice in terms
of clause 17.3.2.  His entitlement to
notice arose
ex contractu
.  The appellant was accordingly
entitled to two weeks’ written notice, during which period he
was required to perform
his duties in exchange for his salary and
other benefits.  In the event of the municipality failing to
give notice in terms
of clause 17.3.2, the appellant was entitled to
be paid his salary and other benefits for the two-week period after
the termination
of the employment contract.  In this case, the
municipality terminated the employment contract with immediate
effect.  The
appellant did not perform his duties during those
two weeks because the municipality elected not to insist on this, but
placed
him in the same position in which he would have been had he
served the two weeks’ notice period by paying him the
remuneration
to which he was entitled for those two weeks.
Since the appellant received such remuneration, he had no cause for
complaint
in that regard.
[26]
The third issue is whether the mayor or the municipality’s
executive director of
corporate services, the fourth respondent, had
the authority to terminate the employment contract.  The
appellant relied on
the provisions of
section 55(1)
(g)
and
(h)
of the
Local Government: Municipal Systems Act 32 of 2000
for the
contention that only the municipal manager of the municipality, the
second respondent, is responsible and accountable for
the maintenance
of discipline of staff and the promotion of sound labour relations
and compliance by the municipality with applicable
labour
legislation.
[27]
The evidence that the appellant placed before the court in his
founding affidavit shows
that on 8 June 2022 the mayor addressed a
memorandum to the municipal manager wherein she complained about the
appellant’s
behaviour at the restaurant.  She informed the
municipal manager that her office should not be a place where women
feel unsafe
and that her office could not employ an individual who
contributed to such despicable acts of violence.  She also drew
attention
to the fact that the appellant had previously indicated his
lack of support towards her.  It was against that background
that
the mayor instructed the municipal manager to terminate the
employment contract.  On that same day a letter was addressed to

the appellant by the fourth respondent, wherein he notified the
appellant that the employment contract was terminated with immediate

effect.  In a letter dated 10 June 2022 by the fourth
respondent to the appellant, he was informed that, although the

termination of the employment contract was effective from 8 June
2022, he would ‘be compensated for a period of two
weeks in
lieu of a notice period as stipulated in clause 17.2.2
sic
of
your contractor under the heading ‘termination of contract’.
The fourth respondent, acting on the instructions
of the second
respondent, who, in turn who would have acted on behalf of the
municipality, terminated the employment contract.
It is, in my
view, immaterial who, on behalf of the municipality, terminated the
employment contract, which required the municipality
to terminate the
employment contract.  The employment contract was accordingly
terminated, on behalf of the municipality,
in terms of the employment
contract.
[28]
In the circumstances, the appellant has failed to show firstly, that
he was entitled to
a hearing prior to the termination of the
employment contract; secondly, that the municipality was not entitled
to abruptly terminate
the employment contract; and thirdly, that only
the second respondent had the authority to terminate the employment
contract.
The appeal must accordingly be dismissed.
[29]
At the commencement of the hearing of the appeal, the court was
required to consider the
appellant’s application to adduce new
evidence and to amend his notice of motion in terms of such new
evidence, if allowed.
The effect of the new evidence was that
the municipality terminated the mayor’s services on 21
September 2022.  The
effect thereof was that, if the appeal was
upheld, the appellant would have been entitled to payment of his full
salary and other
benefits from the date of the termination of the
employment contact to 21 September 2022, when the mayor’s
services were
terminated.  The respondents gave notice of their
intention to apply for the striking out of various paragraphs from
the appellant’s
affidavit which was used in support of the
application to adduce new evidence, primarily because those
paragraphs are repetitive
and deal with the merits of the appeal.
[30]
In my view, it was necessary for the appellant to inform this court
of the developments
of 21 September 2022, since the mayor was still
employed by the municipality when the application was heard by the
court
a quo
.  Whether it was necessary to make an
application based on a 17-paged affidavit with a 14-paged annexure is
debatable.
There was accordingly merit in the respondents’
criticism of the way in which the appellant sought to inform this
court of
the developments of 21 September 2022.  Despite
such criticism, I would nevertheless grant the application to admit
the
evidence that the mayor’s services were terminated on 21
September 2022 and allow the amendment that the appellant sought
in
respect of the notice of motion to reflect that he no longer sought
an order that he be reinstated, but an order that the municipality

pay his full salary and other benefits until 21 September 2022.
It would, in the circumstance, be appropriate for each party
to pay
his, her or its own costs occasioned by the application to adduce new
evidence and the application to strike out certain
paragraphs in the
affidavit used in support of the application to adduce new evidence.
[31]
Regarding the costs of the appeal, both parties employed the services
of two counsel in
the court
a quo
.  Before us Mr Ndamase
appeared alone, albeit that the appellant’s heads of argument
were prepared by two counsel.
Two counsel appeared before us on
behalf of the respondents.  It appears to have been a necessary
precaution.
[32]
In the result, it is ordered that:
32.1.
The appellant’s application to lead new evidence be and is
hereby granted.
32.2.
Each party shall pay his, her or its own costs occasioned by the
application to adduce new evidence
and the application to strike out
certain paragraphs in the affidavit used in support of the
application to adduce new evidence.
32.3.
The appeal is dismissed.
32.4.
The appellant shall pay the respondents’ costs of the appeal,
such costs to include the costs
of two counsel, where so employed.
________________________
GH
BLOEM
Judge
of the High Court
I
agree.
_________________________
JGA
LAING
Judge
of the High Court
I
agree.
_________________________
ZZ
MATEBESE
ACTING
Judge of the High Court
Appearances
For
the appellant:    Mr B Ndamase,
instructed
by Mgangatho Attorneys, Makhanda.
For
the respondents:   Ms N Msizi with Ms M Pango,
instructed
by McWilliams and Elliot Inc, Gqeberha and NN Dullabh Attorneys,
Makhanda.
Date
of hearing:  4 September 2023.
Date
of delivery of judgment: 19 September 2023.
[1]
Old
Mutual Ltd and Others v Moyo and Another
(2020)
41 ILJ 1085 (GJ) para 67.
[2]
South
African Maritime Safety Authority v McKenzie
2010 (3) SA 601
(SCA) para 43.
[3]
SA
Municipal Workers Union obo Tswaing Local Municipality and Others
(2022)
43 ILJ 2754 (LAC) para 15.
[4]
McKenzie
above n 2 para 11.
[5]
City of
Cape Town (CMC Administration) v Bourbon-Leftley and Another NNO
2006 (3) SA 488
(SCA) para 19.
[6]
E
C Chenia and Sons CC v Lamé and van Blerk
[2006] ZASCA 10
;
2006
(4) SA 574
(SCA) par 8.