Botha and Another v Member of the Executive Council, Department of Education, Arts, Culture and Sports: Northern Province government and Others (J3797/98) [2002] ZALC 135; (2002) 23 ILJ 1274 (LC) (23 April 2002)

55 Reportability

Brief Summary

Labour Law — Employment Contracts — Termination of additional remuneration — Applicants employed by Settlers Agricultural High School claiming unlawful termination of additional salaries — Respondents asserting payments contravened Schools Act and Public Service Act — Court finding that the decision to terminate additional remuneration was lawful and dictated by statutory provisions, with no valid contracts permitting such payments post-enactment of the Schools Act.

IN THE LABOUR COURT OF SOUTH AFRICA
(HELD AT BRAAMFONTEIN)
Case no: J3797/98
In the matter between:
First applicant
Second applicant
and
THE MEMBER OF THE EXECUTIVE COUNCIL 
DEPARTMENT OF EDUCATION, ARTS, 
CULTURE & SPORT
NORTHERN PROVINCE GOVERNMENT First respondent
THE MINISTER OF EDUCATION
GOVERNMENT OF NATIONAL UNITY Second respondent
SETTLERS AGRICULTURAL HIGH SCHOOL Third respondent
THE GOVERNING BODY:
SETTLERS AGRICULTURAL HIGH SCHOOL Fourth respondent
THE PREMIER
NORTHERN PROVINCE GOVERNMENT Fifth respondent
___________________________________________________
_______
JUDGMENT

___________________________________________________
_______
LANDMAN J:
­2­
1. Adriaan Botha and Elizabetha Venter are employed at the Settlers  
Agricultural   High   School   (the   High   School)   as   administrative  
manager and matron respectively. When they were employed the  
School Governing Body (SGB) which was established pursuant to  
the Education Affairs Act (House of Assembly) 70 of 1988 entered  
into   contracts   of   employment   with   them.   The   contracts   of  
employment are not attached to the papers. Unsigned drafts are,  
however, attached. It appears that the applicants are employed by  
the High School, which was a juristic person   and the Transvaal  
Education   Department.   This   was   found   to   be   the   case   by   De  
Villiers   AJ   in   this   matter   in   an   undated   judgment   circa   23   July  
1999. This issue is therefore res judicata as regards the identity of  
their   employer.   I  will   revert  to  the  question   of  the  parties   to   the  
contracts of employment later.
2. It is common cause that the contracts of employment provide that  
in addition to the remuneration paid by the TED the SGB (in law  
the High School) would top­up that salary by doubling the salary of  
Mr Botha and adding R1000 pm to the salary of Ms Venter. The  
respondents refer to these payments as monthly allowances. The  
additional remuneration was paid regularly to the applicants.  
3. The   Schools   Act   84   of   1996   repealed   the   Education   Affairs   Act  
(House of Assembly) of 1988. The High School remained a juristic  
person.   The   old   SGB   was   succeeded   by   a   SGB   established   in  
terms   of   s   15   of   the   Schools   Act   of   1996.   The   Department   of  
Education, Arts, Culture and Sport, Northern Province Government

(the Department) succeeded the Transvaal Education Department  
as regards the High School. The new SGB, or more correctly the  
High School, continued to top up the salaries.
4. The Department formed a view that the payment of the additional  
remuneration was impermissible. In a letter dated 25 March 1998  
the Circuit Manager, Mr JM Mametja, raised the permissibility of  
the SGB/High School paying the extra remuneration. He made  the  
point that: “...In line with the new Act, South African Schools Act,  
constituting the School Governing Bodies the powers and functions  
of the previous Governing Body of the ex­Model C schools cease  
to exist. By implication, contracts entered into by these bodies are  
therefore nullified.”
­3­
5. On 25 November 1998 the principal of the High School, acting on  
behalf of the SGB  (which had been instructed by the Department  
that   the   payment   of   top­up   salaries   must   cease),   informed   the  
applicants   that   their   additional   salaries   would   cease   with   effect  
from the end of November 1998. The payments were stopped. But  
certain arrangements have been put in place pending the outcome  
of this application for a declaratory order. 
6. The   applicants   aver   that   the   decision   to   terminate   the   top­up  
salaries is unlawful, irregular, illegal and unconstitutional and ultra  
vires.   Alternatively   if   the   Schools   Act   of   1996   is   applicable   and  
permits the termination of these salaries it is averred that the Act is  
unconstitutional and invalid. 
7. The Department and the SGB justify the cessation of the payments  
on the grounds that:
(a) The school funds of the High School were being used to pay  
the   additional   salaries.   This   is   in   conflict   with   s   37(6)   of   the  
Schools Act of 1996 and the payment of these salaries had to  
be terminated and were legally terminated.

(b) Section 20(n) of the Public Service Act (Proclamation 103 of  
1994)   (the   PSA)   forbids   an   officer   from   receiving   other  
emoluments   without   permission   of   a   relevant   executing  
authority. The applicants do not have permission and may not  
receive the additional salary.
8. This   is   not   a   contractual   claim.   The   applicants   do   not   seek  
payment of the additional salaries. They seek merely a declarator  
regarding the lawfulness etc of the  decision  of the SGB on behalf  
of   the   High   School   and   the   Department   to   stop   paying   the  
additional   salaries.   They   do   not   seek   to   review   the   decision.  
Notwithstanding this, at the heart of this matter lies the contracts of  
employment. It is therefore, in my opinion, necessary to examine  
the contracts and their validity before dealing with the SGB and the  
Department’s stance.
9. Were   the   contracts   incapable   of   performance   when   they   were  
concluded? This point has not been taken. The respondents have  
been content to base their case on the invalidity of the contract 
10.­4­
allegedly attributable to effect of the enactment of the Schools  
Act of 1996.
11. The powers of a High School to agree on terms and conditions of  
employment   with   educators   was   considered   in   Association   of  
Professional   Teachers   &   another   v   Minister   of   Education   &  
others   (1995) 16 ILJ 1048 (LC) at 1067 H ­ 1068A where it was  
held:
“Although the law provides that the appointment, promoting and  
discharge   of   employees,   such   as   teachers,   vest   in   the  
governing body, strictly speaking, in the juristic person via its

governing body, the state controls the exercise of these powers  
very tightly. The governing body may only select teachers from  
a   list   supplied   by   the   state,   promotions   are   subject   to   the  
approval   of   the   state   and   likewise,   no   teacher   may   be  
discharged   without   prior   approval   of   the   state.   The   state   is  
empowered to intervene and appoint a teacher if the governing  
body   does   not   do   so.   Although   the   governing   body   formally  
appoints a teacher on the subsidized staff or establishment of  
the   school,   the   governing   body   is   specifically,   and   this   was  
common   cause   between   the   parties,   disempowered   from  
negotiating   terms   and   conditions   of   employment   with   such   a  
teacher. Even in regard to teachers and other employees whose  
salaries are not subsidized by the state, there is a limitation on  
the terms and conditions which may be negotiated with such a  
person.”    
12.I   have   no   doubt   that   this   passage   is   also   applicable   to   non­
educators.   If   a   school   could   not   employ   a   non­subsidised  
employee   at   greater   rates   than   those   of   the   Department   of  
Education   then   it   follows   that   it   could   not   employ   subsidised  
employees at a greater salary. See s 97 and 100 of the Education  
Affairs  Act  (House  of  Assembly)  of  1988.  This  is  what  the High  
School purported to do as regard the applicants whose post were  
subsidised   by   the   TED.   This   step   would   have   been   permissible  
had the Head of Department, as defined in the Act, sanctioned it. It  
is not alleged on the papers that there was express consent to the  
High School topping up the applicants’ salaries. It is not our law  
that the TED or its successor is 
13.­5­
estopped from insisting on compliance with the law.
14.However   it   may   be   that   the   TED,   being   part   of   the   composite

14.However   it   may   be   that   the   TED,   being   part   of   the   composite  
employer,   impliedly approved the payments. There are no facts  
which permit this inference to be drawn.

15.If I am wrong and the contracts were valid as regard the additional  
remuneration, it is necessary to consider the effect of the Schools  
Act of 1996 on the contracts.
16.Mr JM Mametja’s view that the contracts of employment are invalid  
is   entirely   without   foundation.   A   School   Governing   Body   is  
something approximating a board of directors. It does not have an  
independent existence. It contracts, within its powers, on behalf of  
its   principal   the   school.   The   Schools   Act   of   1996   contains   no  
provision which expressly or implicitly nullify any contract entered  
into   between   the   High   School   and   its   staff.   See   s   54(4)   of   the  
Schools Act. Where a contract is invalidated the Schools Act says  
so explicitly. See s 52(4).
17.Under the new dispensation a public school (like the High School)  
may   no   longer   employ   educators   and   non­educators.   The   most  
that a public school may do is to make recommendations to the  
Head of Department. See s 20(1)((i) and (j) of the Schools Act of  
1996. 
18.It may be that a valid contract with a staff member becomes wholly  
or partially incapable of performance because of the operation of a  
a provision of the Schools Act. This aspect must be investigated. It  
involves the question: May the school funds of the High School be  
used to pay the additional salaries? Is it in conflict with s 37(6) of  
the   Schools   Act     to   pay   these   salaries   so   that   a   valid   decision  
could be taken to terminate the payments? 
19. It   is   common   cause   that   school   funds   are   used   to   top­up   the  
applicants’ salaries. It is clear from s 37(2) that the High School  
itself   should   have   no   funds   other   than   its   school   fund.  
Consequently the additional remuneration ,  if it is to be paid, must  
be paid out of this fund. Section 37(6) of the Schools Act reads:

1. ­6­
“The school fund, all proceeds thereof and any other assets of  
the public school must be used only for­
(a) educational purposes, at or in connection with such school;
(b) educational   purposes,   at   or   in  connection  with   another   public  
school, by agreement with such other public school and with the  
consent of the Head of Department;
(c) the performance of the functions of the governing 
body; or
(d) another   educational   purpose   agreed   between   the   governing  
body and the Head of Department. 
20.Section   36(7)   of   the   Schools   Act   of   1996   sets   out   the   overall  
purpose   for   which   school   funds   may   be   employed.   The   actual  
authorisation for the payment for services to fulfil those goals must  
be sought elsewhere. In this case s 21 is one such section.
 
21.Section 21 reads:
(1) Subject to this Act, a governing body may apply to the Head of  
Department   in   writing   to   be   allocated   any   of   the   following  
functions:....
(d) to pay for services to the school....
(2) The   Head   of   Department   may   refuse   an   application  
contemplated   in   sub­section   (1)   only   if   the   governing   body  
concerned does not have the capacity to perform such function  
effectively.
(3) The   Head   of   Department   may   approve   such   application

unconditionally or subject to conditions.
(4) The   decision   of   the   Head   of   Department   on   such   application  
must be conveyed in writing to the governing body concerned,  
giving reasons.
(1) ­7­
(5) Any person aggrieved by a decision of the Head of Department  
in   terms   of   this   section   may   appeal   to   the   Member   of   the  
Executive Council.
(6) The   Member   of   the   Executive   Council   may,   by   notice   in   the  
Provincial Gazette, determine that some governing bodies may  
exercise one or more functions without making an application  
contemplated in subsection (1), if ­
(a) he or she is satisfied that the governing bodies concerned have  
the capacity to perform such functions effectively; and
(b) there is a reasonable and equitable basis for doing so.”   
22. It seems to me that 21 would permit a School to remunerate an  
employee   of   the   school   for  additional  work  done   for  the  school.  
This   would   be   consistent   with   the   PSA   if   the   services   are   in  
addition   to   the   duties   framed   in   the   contract   of   employment.     It  
may, nevertheless, fall foul of the statutory obligations regarding  
the   right   to   do   other   work.   But,   it   would   not   fall   foul   of   the  
prohibition on receiving additional remuneration for performing the  
principal duties. 
23.It is common cause that the applicants are officials and that the  
PSA   is   applicable   to   them.   The   PSA   forbids   an   officer   from  
receiving additional remuneration. See s 20(n) which reads:
“An officer, other than a member of the services or an educator  
or a member of the Agency or the Service, shall be guilty of  
misconduct and may be dealt with in accordance with section

21, if he or she­
.....
(n) accepts, without permission of a relevant executing authority  
(granted on the recommendation of the Commission in the case  
of  an   officer   in  the  A   division),  or   demands  in  respect   of   the  
carrying   out   or   failure   to   carry   out   his   or   her   duties   any  
commission,   fee   or   other   reward   (not   being   the   emoluments  
payable to him or her in respect of his or her duties), or fails to  
report to his or her department or, if he or 
­8­
she is a head of department, to such authority, the offer of such  
a commission, fee or reward.”  
24.Section 20 of the PSA must be read with s 30 of the same Act  
which  deal with remuneration for other work. It is permissible to be  
paid   for   a   variety   of   other   work   provided   that   “it   is   otherwise  
provided   for   in   his   or   her   conditions   of   employment”.   The  
conditions of employment must, I believe, refer to the conditions of  
employment agreed upon or fixed by the sate as employer. In this  
instance   there   are   no   facts   which   show   that   the   applicants  
conditions of employment with the Department, as opposed to the  
High School, provide for additional remuneration.  
25.In   my   opinion,   on   the   facts   as   they   appear   on   the   papers,   the  
decision to terminate the additional remuneration is one which was  
dictated by the law.   The only consideration was the state of the  
law. Questions of fairness do not enter the picture. No discretion is  
exercisable.   Advance   warning   of   the   intention   to   terminate   the  
payments   was   given.   The   applicants   were   invited   to   address  
representations to the authorities.
26.However   it   remains   to   decide   whether   the   Schools   Act   of   1996  
which   forbids   the   payments   of   additional   salaries   out   of   school  
funds   is   unconstitutional   and   invalid.   Various   submissions   were

made regarding the merits of paying the additional remuneration  
and some comparisons were drawn with the position of Educators  
and   the   transitional   provisions   which   were   enacted   to   deal   with  
their employment situation when the Education Affairs Act (House  
of   Assembly)   of   1988   was   repealed.   However,   no   submissions  
were made as to which rights in the Constitution of the Republic of  
South Africa of 1996 are infringed the by the Schools Act of 1996.  
In   the   result   the   complaint   of   constitutional   invalidity   cannot   be  
sustained.
27.The   decision   to   terminate   the   top­up   salaries   was   not   unlawful,  
irregular, illegal, unconstitutional or ultra vires. 
28.I   may   add,   in   conclusion,   that   in   the   absence   of   a   copy   of   the  
contracts of employment I am unable to find and, indeed not called  
29.­9­
upon   to   find,   whether   the   part   of   the   contracts   dealing   with  
additional   remuneration   have   become   impossible   of  
performance. It may be that if sued the High School would plead  
that thy cannot use these funds. Probably the High School does  
not have other funds. It would appear that it ought not to have  
other funds but whether or not it has such funds is something  
which I cannot decide.  
30.In the result the application is dismissed with costs including the  
reserved costs.
SIGNED AND DATED AT BRAAMFONTEIN THIS 22 nd DAY OF  
APRIL 2002.

____________
AA Landman
Judge of the Labour Court of South Africa
For the applicants: Ms R Anderson of Anderson & Kloppers Attorneys.
For the respondents: Adv TP Kruger instructed by the State Attorney.
18 March 2002.
Date of judgment 23 April 2002.