Costin v Van Transport (J476/99) [2000] ZALC 103 (18 September 2000)

45 Reportability

Brief Summary

Labour Law — Resignation vs. Retrenchment — Dispute over whether employee resigned or was retrenched — Employee offered resignation after being confronted about underinsurance of aircraft — Employer accepted resignation and allowed employee to remain until finding new employment — Court finding that resignation was established on balance of probabilities, dismissing the application with costs.

C2:2700
J476/99 1 JUDGMENT
Sneller Verbatim/ms CASE NO. J476/99
IN THE LABOUR COURT OF SOUTH AFRICA
(TRANSVAAL PROVINCIAL DIVISION)
PRETORIA
2000-09-18
In the matter between:
HILLARY COSTIN Applicant
versus
VAN TRANSPORT Respondent

J U D G M E N T

PILLAY, J: The issue in dispute in this matter is whether the applicant resigned or was
retrenched. The applicant was employed by the respondent to render bookkeeping
and administrative services. One of her responsibilities was to attend to the
insurances on aircrafts owned by Mr Van der Merwe a member of the respondent. On
23 August 1998 one of the aircrafts crashed in Sudan. On Monday 24 August 1999 Mr
Van der Merwe instructed the applicant to fax him a letter confirming the increase in
the insurances in respect of the aircraft. It transpired that the insurances had not
been increased.
There was a dispute as to whether the applicant had been instructed to arrange
for the increases in the
insurances. /...
1

(10)
(20)
2

C2:2738
J476/99 3 JUDGMENT
insurances. Whatever the position was it was common cause that Mr Van der Merwe
was angry about the under insurance of the aircraft and the fact that he had
sustained a loss of about R1,5 million.
Mrs Naude testified that on or about 24 August 1998 the applicant telephoned
her to request that the insurances on the aircraft be increased and backdated to 3
July 1998. Mrs Naude agreed to do so, until she discovered that the aircraft had
crashed and that a claim had already arisen. The applicant denied ever knowing Mrs
Naude.
After denying that she had such a discussion, the applicant, under cross-
examination enquired when such a discussion had taken place. The question was
strange in the circumstances. If the discussion had never occurred then it mattered
not when respondent alleged that it had taken place. It was in the interest of the
applicant and the respondent to have the insurances backdated and not in the
interests of Mrs Naude or the insurance company's interest. The probabilities
therefore favour the version of Mrs Naude.
Mrs Naude testified that the date on which the telephone call was made was 27
July. She was obviously mistaken as it is common cause that the crash only occurred
a month later. There was also some debate as to whether Mr Van der Merwe returned
from Kenya on 24 or 27 August. However, it was common cause that on the date on
which he returned he summoned the applicant to a discussion.
On Mr Van der Merwe's version he intended to hold a disciplinary enquiry to
dismiss the applicant for the loss he
had/...
3

C2:2884
(10)
(20)
4

J476/99 5 JUDGMENT
had sustained and her poor performance. However, when he confronted her with the
allegation that she had failed to attend to increasing the insurance cover which
resulted in the substantial loss, she admitted her fault and offered to resign.
Mr Van der Merwe testified that he had accepted the resignation and at her request
allowed her to remain until December or until she found another job.
The applicant's version was that she denied liability for not increasing the
insurance and accordingly the loss that ensued. She testified that Mr Van der Merwe
had allegedly pressured her to admit liability. Eventually she offered to resign. Mr
Van der Merwe told her not to act over hastily. The applicant concluded that Mr Van
der Merwe had not accepted her resignation.
These two versions are mutually destructive. I turn therefore to the
probabilities of each version. It is common cause that the applicant offered to resign.
It is also common cause that Mr Van der Merwe was angry. His evidence that he
intended to dismiss her summarily was not challenged. Whether such a dismissal
would have been fair or not is not relevant to this case. It seems highly unlikely that
in these circum
stances/...
C2:3002
J476/99 5 JUDGMENT
stances that Mr Van der Merwe would not have accepted her resignation. If the
suggestion is that Mr Van der Merwe relented during the discussion there is no
evidence to that effect. On the contrary, the applicant testified that after the incident
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"the work situation was not nice any more." This does not accord with her testimony
that Mr Van der Merwe had adopted the attitude of letting bygones be bygones.
Then there is the testimony of Mary Kekana and Janine Smuts. Both of them
were not cross-examined on the gist of their evidence that the applicant reported to
them that she would be resigning.
The respondent's version is further corroborated by the applicant's efforts
subsequently of finding another job and her request for a reference which was
prepared shortly before 26 October 1998 when she left the employ of the respondent.
Theapplicant also did not claim notice pay which she would have been
entitled to if she had been summarily retrenched.
With regard to her discussion with Mrs Van der Merwe on 19 October
one aspect is common cause that is that Mrs Van der Merwe had asked her
for the books. In order to decide whether Mrs Van der Merwe knew that
the applicant's services would be
terminated/...
C2:3002
J476/99 6 JUDGMENT
terminated on 26 October I have only the applicant's version.
However, in view of my finding that after the discussion on the
day that Mr Van der Merwe returned from Kenya there was a mutual
acquiescence that the relationship would be terminated before December,
and that she had informed Messrs Kekana and Smuts of intended
resignation, it is not necessary to take this aspect further.
In the circumstances the matter is dismissed with costs.
---oo0oo---
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Counsel for the applicant Ian Mclaren
instructed by Mclaren & Associates
Counsel for the respondent C De W Van der Merwe
instructed by J P A Swanepoel
Date of Hearing 2000-09-18
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