Schetz v Tedelex Trading (Pty) Ltd (J3915/99) [2000] ZALC 49 (23 June 2000)

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Brief Summary

Labour Law — Retrenchment — Condonation of late referral — Applicant retrenched without compliance with severance pay agreement and Labour Relations Act — Late referral to bargaining council by 49 days — Conciliator's decision to refuse condonation reviewed due to gross irregularity in admitting evidence without affording applicant opportunity to respond — Condonation granted and matter referred back for conciliation.

VIC & DUP/JOHANNESBURG/LKS
IN THE LABOUR COURT OF SOUTH AFRICA
HELD AT JOHANNESBURG
DATE:  23 June 2000 CASE NO. J3915/99
 
In the matter between:
SCHETZ, RHONA  Applicant
and
TEDELEX TRADING (PTY) LTD Respondent
   
J U D G M E N T
LANDMAN, J :
[1] The   applicant,   Ms   Schetz,   was   employed   by   Tedelex   Trading   (Pty)   Ltd  
during August 1980.  She remained in employment and during January 1998  
she   was   contacted   by   a   director   who   advised   her   that   she   was   being  
transferred to the Toy Division.  She happily accepted this position.
[2] On 26 November 1998 the director visited her at home and handed her a  
letter   advising   her   that   she   is   being   retrenched   and   that   her   notice  
period   would   terminate   on   31   January   1999.     There   was   no   attempt   to  
comply with the terms of the severance pay agreement of the Iron, Steel,  
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Engineering   and   Metallurgical   Industry,   nor   was   there   any   attempt   to  
comply with section 189 of the Labour Relations Act 66 of 1995.
[3] Ms Schetz left the services of her employer on 29 December although the  
notice expired on 28 January 1999.   She was advised that she need not  
work the final month.
[4] On her departure she was advised that all her monies would be paid to  
her in December.  She  left for Israel on 29 December and returned on 2  
February   1999.     When   she   returned   she   discovered   that   the   lump   sum  
payment have not been made to her.  She made various enquiries and on 11  
February she attended at her previous employer's premises to collect the  
monies   owing   to   her.     While   she   was   there   it   became   apparent   to   her  
that, despite her retrenchment, other persons with fewer skills and less  
service had remained in the employment of her employer.
[5] She   sought   legal   advice   and   a   dispute   was   referred   to   the   CCMA   on   11  
March 1999.  It transpired, however, that there was a bargaining council  
having   jurisdiction   and   on   18   March   the   referral   was   sent   to   that  
council   together   with   an   application   for   the   condonation   of   the   late  
referral of her dispute.
[6] On   10   May   she   was   advised   that   the   condonation   had   been   refused.  
Reasons were requested and it was then discovered that Tedelex Trading  
(Pty) Ltd had opposed her application for condonation by way of a letter  
dated 9 April 1999.   She had been unaware of this letter.   This letter  
is attached  to the  papers. It  is to  the effect  that Mrs  Schetz was  a  
personal friend of the managing director, that she was acquainted with  
the directors and with senior management.   She had assisted in running  
the   industrial   relations   programme   and   she   knew   what   retrenchment   was  
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about.   She   had   been   through   various   retrenchment   exercises   with   her  
firm.  And then it is said:
"It has been the view that Mrs Schetz was happy when she left Tedelex,  
according   to   her   then   immediate   superior,   Mr   H   Cohen   (brother   of   the  
managing director).  It must be assumed that she had been told otherwise  
by someone else at a much later stage during her absence from Tedelex".
[7] The   conciliator   assigned   to   consider   the   question   of   condonation   on  
behalf   of   the   bargaining   council   has   provided   written   reasons   for   his  
decision.   He has taken into account all the elements which he should  
take   into   account,   such   as   the   degree   of   lateness,   the   prospects   of  
success   and   the   question   of   prejudice.     The   conciliator   was   of   the  
opinion that it could not be said that she did not have good prospects  
of success because he found that her prospects were as good as those of  
her former employer and that both parties would suffer prejudice.
[8] Essentially then this turns on the question of whether or not the late  
referral,   which   was   49   days   late,   should   have   been   condoned.   This   is  
tied   up   with   the   explanation   for   the   lateness.     In   my   opinion,   the  
commissioner committed a gross irregularity by admitting evidence in the  
form   of   the   letter,   which   I   have   set   above   by   her   former   employer  
without affording her an opportunity to deal with it.  She was entitled  
to the benefit of the  audi alteram partem  rule.  This was withheld from  
her and it constitutes a gross irregularity.  In the result I am free to  
intervene because of this defect in the decision.
[9] In   my   opinion   the   conciliator   should   have   taken   into   account,   in  
deciding whether or not the explanation was a good one, the fact that  
the   date   of   dismissal   was   not   the   main   event   which   triggered   her  
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complaint.     True   in   law   her   dismissal   is   the   ground   of   her   complaint  
but, almost as in a delict situation, she only became aware that she had  
grounds   for   complaint   when   she   attended   at   the   offices   of   her   former  
employer and found that despite the down sizing other people were still  
employed and that this constituted in her opinion an unfair dismissal.  
She   has   described   this   event   in   the   papers   that   served   before   the  
commissioner.   He   should   have   taken   cognisance   of   it.     If   he   did   take  
cognisance of it he would have known that she referred her dispute to  
the CCMA within 30 days. She however, errored and within a further seven  
days it was referred to the bargaining council.  That constitutes, in my  
opinion, a good explanation and in the circumstances I am of the opinion  
that she has shown good cause for the late referral.
1. In the circumstances therefore the decision of the first respondent not to  
grant   condonation   is   reviewed   and   set   aside   and   replaced   with   the  
decision that condonation is granted.
2. The   bargaining   council   is   directed   to   convene   a   conciliation   meeting   as  
soon as practicable.
3. The second respondent is ordered to pay the costs in this application.
DATED AT JOHANNESBURG ON THIS THE ..... DAY OF JULY 2000
JUDGE A A LANDMAN
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MS RUTH EDMONDS
: Ruth Edmonds Attorney
: MR STEVEN HARDIE
: Edward Nathan & Friedland
23 JUNE 2000
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