Ngobeni v Stantol Steel (JS377/01) [2001] ZALC 197 (5 November 2001)

45 Reportability

Brief Summary

Labour Law — Dismissal — Retrenchment vs. Resignation — Applicant claiming unfair dismissal after alleged retrenchment by Stantol Steel — Respondent asserting applicant resigned from Khoza & O'Dell Projects — Court finding applicant was employed by Khoza & O'Dell and voluntarily resigned — No evidence of retrenchment established — Dismissal claim dismissed.

Sneller Verbatim/MC
IN THE LABOUR COURT OF SOUTH AFRICA
BRAAMFONTEIN CASE NO: JS377-01
2001-11-05
in the matter between
BUTIMAFANA RACHEL NGOBENI Applicant
and
STANTOL STEEL Respondent
________________________________________________________________
J U D G M E N T
________________________________________________________________
REVELAS J:
1.The applicant referred a dismissal dispute to this court.   He said he was  
retrenched by the respondent, Stantol Steel CC, the business activities  
of   which   included   the   manufacturing   of   structural   steel.     Mr   Stanley 
O'Dell is the sole member of the respondent.  He is also a member of a  
close   corporation   called   Khoza   &   O'Dell   Projects   CC,   a   construction  
company.
2.The   respondent's   case   was   that   it   did   not   terminate   the   services   of   the  
applicant as the applicant had resigned on 17 January 2001,and further  
that   he   did   not   resign   from   the   respondent,   but   from   Khoza   &   O'Dell  
Projects CC where he had been working as a foreman since August 2000.  
He was  previously employed  at Stantol  Steel CC,  (the respondent)  as a  
welder. 
3.According to Mr O'Dell the applicant was transferred to Khoza & O'Dell to  
fill   an   affirmative   action   position,   a   foreman   amongst   other   things,  
with a view to own share options and to be part of running a business in

future.     This   was   done   because   the   applicant   was   recog nised   as   an  
employee with linguistic skills and very good communication skills and  
potential in  other areas.   Mr  O'Dell testified  that the  applicant was  
the best candidate for the position within Stantol Steel at the time.  
4.The  applicant hotly  disputed that  he was  ever transferred  or that  he was  
ever employed as a foreman by Khoza & O'Dell.   He insisted that he was  
employed by Stantol Steel and that the latter had dismissed him through  
Mr O'Dell.  
5.The  applicant's case  is that  when he  arrived at  work, Mr  O'Dell informed  
him that his services were terminated, apparently with immediate effect,  
because there was no work left in the business.  
6.In the bundle of documents, handed up by the parties, at page 24 and which  
was provided by both parties in terms of a pre­trial minute, there is a  
letter addressed to the respondent by the applicant purportedly written  
by   him   on   16   January   2001,   which   letter   Mr   O'Dell   said   he   never  
received.  The applicant also produced a transmission slip as proof that  
he had sent the document to the respondent on the 16th, but the portion  
which could prove successful transmission had been torn off.
7.In the letter the applicant demands to know the reason for the termination  
of   his   employment,   and   payment   of   an   unspecified   amount   of   money.   He  
advised the respondent that he would be taking legal steps against it.
8.The following day, 17 January 2001 the applicant went to the respondent's  
premises   where   Khoza   &   O'Dell   was   also   situated.     Ac cording   to   the  
applicant Mr  O'Dell had  told him  that he  was retrenched  because there  
was   no   work   left   as   stated   hereinbefore,   but   he   added   that   he   would  
contact the applicant as soon as a new posi tion became available within  
the respondent.  
9.The applicant also gave evidence that he was promised a severance package

the respondent.  
9.The applicant also gave evidence that he was promised a severance package  
of R3   000.  These two undertakings, the applicant says, were recorded in

writing   in   a   settlement   agreement   reached   between   the   parties   on   the  
same day and the undertaking went along with other undertakings to pay  
the applicant an amount of R2   000, an undertaking to pay a traffic fine  
of R600 incurred by the applicant.
10.The applicant was also aggrieved about the fact that he did not receive  
severance   pay   and   that   the   respondent   had   employed   a   new   boilermaker  
subsequent   to   his   departure,   and   declined   to   employ   the   applicant   who  
also applied on the advice of a business called Africol.  
11.It is common cause that a settlement agreement was indeed reached between  
the   applicant   and   Mr   O'Dell   on   17   January   2001.     The   respondent,   in  
evidence produced a two page settlement agreement which Mr O'Dell says  
was the agreement in question.  The original of that agreement is marked  
exhibit A.
12.The applicant contends that EXHIBIT A, (a copy of which was also contained  
in the bundle), is not the agreement which was reached on the 17th.  His  
version is that the agreement in question, which the parties signed on  
that day was a three page document with different terms, although some  
of the terms contained in exhibit A was also contained in the three page  
document. The two undertakings regar ding severance pay and re­employment  
was not contained therein.
13.For   purposes   of   understanding   the   evidence   and   the   conflicting   versions  
properly it is necessary to quote from the relevant parts of exhibit A  
which is almost the entire document. It reads as follows:
"SETTLEMENT AGREEMENT  17/01/2001
between Stanley O'Dell A
Khoza and O'Dell Projects
and
Rachel Butinfana Ngobeni ID 6301165410081
hereby agree the following

1. That Rachel accepts R2   000 as full and final settlement between himself  
and Khoza and O'Dell Projects.
2. Khoza and O'Dell Projects will pay a fine of R600 on Rachel's behalf.
3. This   agreement   is   in   full   and   final   (sic)   between   the   parties   and  
replaces any previous agreements.
4. The   parties   hereby   agree   that   no   further   claims   whatsoever   will   be  
instituted between them, or any organisation or individuals related to  
Khoza and O'Dell Projects."
14.The agreement is then signed by the applicant and Mr O'Dell.   Mrs   O'Dell 
signed as a witness below the applicant's name and signature.
15.The applicant disputes that the agreement was reached be tween himself and  
Khoza   and   O'Dell   as   reflected   on   exhibit   A.     He   maintains   that   the  
agreement   he   signed   reflected   the   respondent,   Stantol   Steel   as   the  
employer party.   He denies that paragraph 3 and 4 relating to the full  
and final settlement clauses, were recorded in the agreement he signed  
and that in this agreement there were two fur ther paragraphs relating to  
the question of a severance pay package of R3   000 and re­employment.  
16.The applicant was asked under cross­examination for an expla nation as to  
why the agreement he allegedly signed consisted of an extra third page  
and this would be the second page on his version, containing two further  
undertakings when the first page did not record paragraphs 3 and 4 of  
exhibit A, which is only two pages.   In other words on the applicant's  
version there were the same amount of para graphs, yet requiring a full  
second page instead of, in other words a three page document instead of  
a two page one.
17.The applicant answered that the first page of the agreement was written in  
a fashion that there were far greater spaces between the heading and the  
names of the parties than on exhibit A. The ap plicant acknowledged that  
the signature on exhibit A was his.   He seems to suggest that the last

page of  exhibit A,  which only  contained the  signatures of  himself, Mr  
O'Dell and Mrs O'Dell, was also the last page of the agreement which he  
had signed.   In other words Mr O'Dell must have attached the last page  
of   this   three   page   document   to   the   exhibit   A,   which   he   must   have  
fraudulently re­wrote after the appli cant had signed the alleged former  
agreement.    The staple  marks on  the two  pages constituting  exhibit A,  
suggest no fraudulent inter ference.  There are only two holes as far as  
the   eye   can   see   and   there   is   only   one   staple   mark,   only   one   crease  
which, a staple mark which was caused by the stapler.
18.In   my   view   the   version   of   the   applicant   in   respect   of   the   alleged  
previously existing agreement with more beneficial terms for him, seems  
highly   unlikely   as   will   appear   hereinafter   when   considering   the   other  
evidence.  It also appears to be fabricated.
19.On   his   own   version   Mr   O'Dell   was   kind   to   him.     He   never   dis puted   Mr  
O'Dell's   evidence   that   he   was   to   be   advanced   in   his   career   as   an  
employee with potential,  inter alia  because of his linguistic abilities  
and   communication   skills,   that   the   advancement   proceeded   with   the  
support   of   Mr   O'Dell   and   was   Mr   O'Dell's   idea.     These   facts   and   the  
impression of an honest witness, which Mr O'Dell made, was inconsistent  
with the fraudulent conduct attributed to him by the applicant in this  
regard.
20.The applicant denied that he was employed by Khoza and O'Dell.   And the  
next question is whether the applicant was employed by Khoza and O'Dell.  
The applicant did not challenge the evidence that the respondent was a  
factory based area whereas Khoza and O'Dell which performed construction  
work   was   based   at   sites.     When   the   dispute   in   this   matter   arose   the

work   was   based   at   sites.     When   the   dispute   in   this   matter   arose   the  
applicant was  based at  a site  where the  Metro project,  a construction  
near the Johannesburg railway station was in progress and conducted by  
Khoza and O'Dell. The applicant was not working at Stantol Steel at that

time.  Ac cording to Mr O'Dell he was based at the site as a foreman.
21.The   applicant   was   since   his   transfer   to   Khoza   and   O'Dell   no   longer   a  
weekly paid wage earner but a salaried employee who earned more than he  
previously   had   as   a   welder.     He   also   paid   provisional   tax.     This  
evidence the applicant also did not dispute. 
22.In   deciding   the   question   as   to   whom   the   applicant   was   employed   by,   it  
would have been helpful if either party had produced pay slips, but this  
was not done.  But on the evidence I am satisfied that the applicant was  
employed   by   Khoza   and   O'Dell.     Mr   O'Dell's   wife,   Mrs   Heila   O'Dell  
confirmed this  fact.    She worked  with the  daily administration  of the  
respondent at Khoza and O'Dell.  Mr O'Dell is involved of the day to day  
running   of   both   businesses   in   question.     He   did   not   adopt   an   overly  
technical   approach   to   this   question.     He   ap peared   to   have   taken  
responsibility for the respondent and Khoza and O'Dell in this matter.  
23.In my view Mr O'Dell had nothing to gain from fabricating evi dence that  
the applicant was employed by Khoza and O'Dell and that a settlement was  
reached with that party as opposed to the re spondent.  
24.On the facts presented I have no reason to believe that the applicant was  
employed by the respondent.  
25.Mr O'Dell also gave evidence that he had a counselling session with the  
applicant   on   15   January   2001,   that   is   the   day   on   which   the   applicant  
says   he   was   dismissed.     The   counselling   session   was   about   the  
applicant's   performance   on   site,   particularly   the   Metro   Mall   site.  
During   this   meeting   several   concerns   were   raised   by   Mr   O'Dell   and   in  
particular   the   fact   that   the   applicant   only   returned   to   the   site   on  
10  January 2001 when he was supposed to return sooner.

10  January 2001 when he was supposed to return sooner.  
26.The applicant denied that such a meeting took place with Mr   O'Dell on the  
15th.   He stated that he and Mr O'Dell had a dis cussion on 10 January,  
five days earlier. Mr O'Dell, in support of his version that a meeting

was held, relied on a three page minute he had kept of the meeting of 15  
January 2001 which formed part of the bundle and was found at pages 21,  
22 and 23.  This minute reflected Mr O'Dell's concern and that Mr O'Dell  
had explained to the applicant that salaried employees were not entitled  
to overtime pay.   The applicant felt that he did not have to return to  
the   site   on   10   January   2001   as   he   was   not   required   to   work   overtime  
unless he was remunerated accordingly.
27.Other   problems   were   also   discussed   with   the   applicant.     The   applicant  
denied that any of these issues were raised with him on 15   January, save  
for   the   issue   of   his   late   arrival   which   was   discussed   on   10   January  
2001.  Mr O'Dell stated that he had no discussion about this issue with  
the applicant and on the 10th told him that he would talk to him about  
these issues on a meeting to be held on the 15 th.
28.In respect of the minute, the applicant's evidence is once again that Mr  
O'Dell   fraudulently   fabricated   a   document,   namely   the   minute   of   the  
meeting   which   never   took   place.     According   to   him   his   services   were  
merely terminated on that day without reason.  Mr O'Dell's evidence was  
that the applicant's services were terminated by virtue of the fact that  
the applicant had resigned on the 17th because he told Mr O'Dell that  
since Mr O'Dell was no longer happy with him, after their meeting of the  
15th, resignation was better.   Mr O'Dell stated that he did not object  
to   the   applicant   resigning   because   there   were   problems   with   his  
performance,   yet   they   did   not   want   his   dismissal.     According   to   Mr  
O'Dell   the   business   Khoza   and   O'Dell   was   "an   affirmative   action"   or  
black   empowerment   business   and   as   I   understood   it   a   high   level   of  
tolerance   regarding   performance   of   employees   was   adopted   at   Khoza   and

tolerance   regarding   performance   of   employees   was   adopted   at   Khoza   and  
O'Dell   and   the   applicant   was   in   any   event   the   best   candidate   for   the  
position.
29.In this regard the letter of 16 January is a crucial piece of evidence as

it reflects that the applicant was dismissed the previous day, when Mr  
O'Dell says  he had  a meeting  with the  applicant about  the applicant's  
unsatisfactory   work   performance.     A   torn   transmission   slip   is   not  
conclusive proof that the letter in question, which Mr O'Dell insists he  
never   received,   was   in   fact   sent   per   telefax   machine.     All   the   slip  
proves is that a document was sent on 16 January 2001 to the respondent  
but it does not prove which document.  
30.If it were not for the other improbable and in some cases false evidence  
produced by the applicant, I may very well have considered this evidence  
to cast a different light on the applicant's case.   But as shown above  
he   gave   more   than   one   false   version   which   affected   his   credibility  
adversely.
31.Of   further   importance   on   the   question   of   resignation   was   that   it   was  
common   cause   that   once   before,   when   criticised   by   Mr   O'Dell,   the  
applicant resigned but returned three days later on his mother's advice  
and was re­employed.  
32.Mr   O'Dell   also   gave   undisputed   evidence   that   "up   to   date"   he   has   never  
embarked   on   any   retrenchments   in   either   of   his   business   concerns   in  
respect of any employees, including the applicant.  
33.After   the   applicant's   resignation   he   also   signed   a   worker's   fund  
withdrawal notification.  According to the evidence of Mr O'Dell and his  
wife,   the   applicant   completed   the   form,   including   question   10   under  
section   A   of   the   form   which   is   headed   "Member   details".     Here   the  
applicant ticked off the box next to the word "resignation" as  opposed  
to the  words retrenchment,  dismissal or  ill health,  all of  which were  
provided for in section A.   The applicant would have it that Mr O'Dell  
completed   section   A   and   he,   the   applicant,   completed   the   remaining

completed   section   A   and   he,   the   applicant,   completed   the   remaining  
sections which was section D and E.  Section B and C were apparently not  
relevant to complete.

34.I   find   it   highly   improbable   that   a   retrenched   employee   would   sign   a  
document when his former employer gave the reason for his dismissal as a  
resignation when it was in fact not a resignation.  
35.The handwriting in Section A resembles the applicant's hand writing, even  
though   no   expert   witness   gave   evidence   to   this   effect.     Mrs   O'Dell  
confirmed   that   the   applicant   completed   the   form   and   that   her   husband  
only   signed   and   dated   the   document.     Mr   O'Dell's   hand writing   is  
reflected on exhibit A and the date which he signed is dis similar to the  
applicant's handwriting and to the handwriting on the document. 
36.The   applicant   has   an   onus   to   prove   that   he   was   dismissed,   in   terms   of  
section 192 of the Labour Relations Act 66 of 1995. 
37.On   the   evidence   presented   by   the   parties,   I   had   to   make   a   credibility  
finding.     As   demonstrated   hereinbefore   I   am   not   able   to   make   such   a  
credibility finding in favour of the applicant.  It was also significant  
in his argument, when he argued, that he only wanted more money.  He was  
hurt because he was not re­employed and be cause he did not receive the  
R3  000.  
38.Mr O'Dell explained, when he gave evidence, that the applicant owed that  
amount to his father­in­law for a caravan which he had bought.  
39.The   applicant   never   addressed   during   argument   on   the   fact   that   he   was  
retrenched and why this process was unfair.  The applicant also signed a  
settlement agreement voluntarily.  He never stated that he was forced to  
sign the agreement.   He only placed the contents of the agreement, or  
the identity of the agreement before court, in question.  If he now has  
"biased regret" one may have sympathy with him, but it was his choice to  
sign the agreement and it was also his choice as well to have resigned.

sign the agreement and it was also his choice as well to have resigned.  
I am not in a position to undo the settlement agreement on that basis.  
The   applicant   is   an   adult   person   who   exercised   a   choice   for   which   he  
alone   must   take   responsibility.   In   the   circumstances   I   cannot   come   to

the applicant's assistance and therefore his application must fail.  
40.On the question of costs I had to consider that the applicant brought a  
case with no merits to this court.   He had in fact settled the matter.  
He put up a false case before the court and did not think twice before  
he levelled slanderous allegations against his former employer who is a  
man   who   on   his   own   version   was   good   to   him   and   appears   to   have  
integrity.
41.I make the following order:  
The application is dismissed with costs.
_________________
E. Revelas