Corns v Adelkloof Drankwinkel CC t/a Cellars Drankwinkel (JS201/01) [2002] ZALC 67; (2002) 23 ILJ 2047 (LC) (15 August 2002)

70 Reportability

Brief Summary

Labour Law — Dismissal — Procedural and substantive unfairness — Applicant dismissed due to alleged operational requirements — Court finding that dismissal was not consensual and that the consultation process was flawed — Agreement signed under pressure and without proper consultation — Dismissal declared null and void, and applicant reinstated with retrospective effect.

Sneller Verbatim/idm
IN THE LABOUR COURT OF SOUTH AFRICA
BRAAMFONTEIN CASE NO: JS201/01
2002-08-15
In the matter between
CELESTE AVRIL CORNS Applicant
and
ADELKLOOF DRANKWINKEL C.C.
t/a CELLARS DRANKWINKEL Respondent
_______________________________________________________________
_
J U D G M E N T
DELIVERED ON 20 AUGUST 2002
_______________________________________________________________
_
REVELAS J:
1. The applicant was dismissed on 15 December 2000 due to  
the   alleged   operational   circumstances   of   the  
respondent.  She is 31 years old and was employed as a  
floor manager.
1. 2. On   the   day   of   her   dismissal,   the   applicant   was  
requested to accompany Mr Van der Merwe, the manager of  
the respondent, a close corporation, to a building in

Kimberley.  She had never been there before, and as it  
turned out, they were on their way to the offices of an  
employer's   organisation   named   the   Labour   Code  
Determination   for   Small   Enterprise   Employers   of   South  
Africa   ("SEESA").     Mr   Van   der   Merwe   is   a   member   of  
SEESA and who also represented the respondent in this  
matter.  On their arrival, the applicant was introduced  
to Mr Johan Viljoen of SEESA.   Mr Van der Merwe then  
raised   the   issue   that   he   could   no   longer   afford   the  
applicant.     He   subsequently   left   the   office   and   the  
applicant was left with Mr Viljoen.  It is common cause  
that when the applicant realised that her services were  
being   terminated,   she   cried   and   was   very   upset.     Mr  
Viljoen   suggested   that   she   go   to   the   bathroom,   which  
she   did,   and   returned   15   minutes   later.     Mr   Viljoen  
testified that he offered a postponement of the meeting  
to   another   day   because   of   her   emotional   state,   which  
she declined.   He offered her a voluntary retrenchment  
package comprising of the following:
1 one   week's   remuneration   for   each   year   of   completed  
service (R900,00);
2 accumulated leave pay (R1 360,00);
3 pro rata bonus (R300,00);
4 one week's  ex gratia  payment (R450,00);
5 notice pay (R1 800,00);

6 extra (R500,00).
The total is R5 310,00.  
3. Mr   Viljoen   also   required   the   applicant   to   sign   a  
voluntary retrenchment agreement, which was a standard  
application   form.     She   signed   this   document,   the  
relevant part of which reads as follows:
"Ek doen hiermee aansoek om 'n vrywillige afleggingspakket
soos aangebied deur die werkgewer.
Ek aanvaar hiermee die pakket soos aangebied en erken dit as
volle en finale betaling van enige en alle eise tussen myself en
die werkgewer.
Ek besef dat die rede waarom die afleggingspakket aangebied
is verband hou met die werkgewer se heersende
omstandighede. Ek wil egter wel in aanmerking kom vir
herindiensneming sou die werkgewer se posisie verbeter en 'n
pos waarvoor ek geskik sal wees, beskikbaar raak.
Ek sal my dienste beëindig op 15 Desember 2000."
The document is dated 15 December.
4. It   is   common   cause   between   the   parties   that   the  
applicant   asked   to   phone   her   mother   for   advice.     She  
said that she did not understand what was going on, and  
I   presume   she   meant   that   she   did   not   understand   her  
rights.  Her mother advised her to sign the agreement,  
which she did.  According to her, she believed that Mr  
Van   der   Merwe   did   not   like   her   as   a   person,   and   her

mother knew thereof, and apparently that was the basis  
of   her   advice   to   her   daughter   to   sign   the   agreement.  
Thereafter   Mr  Van   der  Merwe   came  in   and  gave   her  her  
cheque, which she banked the same day.  
5. The   applicant   referred   her   dispute   to   the   Commission  
for   Conciliation,   Mediation   and   Arbitration,   ( Athe 
CCMA@), the following Monday.  
1. 6. The applicant testified that during the meeting she  
was in shock and had signed the document under pressure  
because Mr Viljoen said he was in a hurry and had to be  
back in Upington that night.  Mr Viljoen disputed that  
he   ever  made   such  a   statement,  and   he  stated   that  he  
could prove that he slept in a guest house in Kimberley  
that   night,   as   he   had   to   attend   a   function   that  
evening.     However,   what   is   peculiar   is   that   the  
applicant met Mr Viljoen that day for the first time in  
the   SEESA   office   in   Kimberley.     How   would   she   have  
known that he was resident in Upington?
7. Mr   Viljoen   gave   evidence   that   he   followed   all   the  
correct   procedures   in   terms   of   section   189   of   the  
Labour   Relations  Act   66  of   1995  ("the   Act").    Yet  he  
did   not   provide   one   single   fact   or   make   reference   to  
any   alternatives  or   selection  criteria   that  he   raised  
with   her.    No  proper   evidence  was   provided  by   him  to

support his statement to that effect.  He could not say  
what he had told her.   He said that he had made notes  
of   the   consultation.     During   further   questioning   it  
emerged   that   these   notes   only   related   to   amounts  
contained in the package, and although it was stated in  
court that he had the minutes with him, there were no  
minutes   produced.     It   appeared   that   he   had   no   such  
minutes, or ever had such minutes.
1. 8. I   am   unconvinced   that   there   was   any   attempt   to  
comply with the obligations placed upon an employer by  
section   189  of   the  Act.     The   applicant  was   told  that  
her services had to be terminated on 15   December 2000.  
She   heard  about   this  for   the  first   time  on   that  day.  
Yet   the   document   setting   out   her   package   is   dated  
11  December   2000,  four   days  previously,   and  is   titled  
"Kennisgewing   van   aflegging".     She   received   no   such  
notice, and she was taken to Mr Viljoen unprepared and  
unrepresented.     The   document   dated   11   December   2000  
also refers to her package as an "afdankings­pakket".  
9. Mr Van der Merwe, upon a request by me to explain why  
he had not conducted the consultation himself, answered  
that   he   thought   it   would   be   better   if   someone   else  
conducted   the   proceedings,   to   alleviate   the  
unpleasantness thereof.   He said that the bottle store  
was   under   financial   pressure   and   he   then   phoned   Mr

Viljoen for assistance.  He also gave evidence that the  
applicant   was   the   highest   paid   employee,   and   it   is  
apparently for that reason that she was identified for  
retrenchment.     In   evidence,   however,   the   attorney  
appearing on behalf of the applicant put to Mr Van der  
Merwe a pay slip which he admitted was the pay slip of  
a co­employee, Adri Barnard.   This pay slip reflected  
that   Ms   Barnard   was   paid   R1   800,00   by   the   respondent  
per   month,   which   is   the   same   salary   earned   by   the  
applicant.  This would indicate further, apart from Mr  
Van   der   Merwe's   credibility   on   the   matter,   that   no  
proper   selection   criteria   was   followed,   let   alone  
alternatives for retrenchment were discussed.  
10. Mr Viljoen could hardly have complied with any of the  
requirements   of   section   189   of   the   Act,   because   he  
simply could not have had sufficient information at his  
disposal   about  the   respondent's  business   to  conduct   a  
proper consultation.   He had arrived in Kimberley from  
Upington and spent less than an hour with the applicant  
alone in an office.  
1. 11. I   gained   the   strong   impression   that   Mr   Van   der  
Merwe wished to retrench the applicant as expeditiously  
as possible, and consequently obtained the services of  
his employer's organisation, who only had his interest  
at heart, to attend to his problems.

12. According   to   the   pre­trial   minute   (paragraph   (iv)   on  
page   27   of   the   bundle   of   pleadings,   the   parties  
described the issues which the court had to decide as 
"whether operational requirements necessitated dismissal
(and)
whether the procedure that led to the consensual termination
of the employment was fair".
13. The   respondent   argued   in   a   special   plea   that   the  
termination of the applicant's services was consensual,  
as   she   had   signed   the   agreement   in   question.     Any  
shortcomings in the process, which was conceded by the  
respondent's   advocate   or   counsel   for   the   respondent,  
that preceded the agreement was cured by the voluntary  
retrenchment package agreement.  
1. 14. In my view, and for the reasons set out above, the  
respondent did not discharge its onus of proving that  
the   dismissal   was   for   a   valid   reason.     The   procedure  
was entirely unfair, high­handed and flawed.  In  Bekker 
v   Nationwide   Airlines   (Pty)   Ltd   1998   2   BLLR   139   (LC)  
Landman J held that where an agreement of this nature  
is   reached   as   a   form   of   settling   a   retrenchment,   the  
agreement   must   be   preceded   by   consultation.     In   this  
matter, the consultation process was so flawed that it  
amounted to no consultation at all.  The applicant was  
taken   to   a   building   where   she   was   confronted   by   a

perfect   stranger   with   the   news   that   she   had   to   be  
retrenched.     Mr   Viljoen   had   a   standardised   agreement  
ready at hand.   Even if she declined the postponement  
of   the   meeting,   Mr   Viljoen   says   he   offered,     it   was  
clear that she would eventually be retrenched whether,  
at this meeting or the next meeting.  The circumstances  
in   which   her   signature   was   procured   were   oppressive.  
She was in shock, needed advice, followed her mother's  
advice over the telephone in circumstances where no one  
had her interests at heart.  
15. The main objective of that meeting was to procure the  
applicant's   signature   on   the   agreement,   and   to  
circumvent the requirements of section 189 of the Act.  
The decision to dismiss was taken four days ago.  
16. From   the   respondent's   point   of   view   there   was   really  
nothing   to   discuss,   and   Mr   Viljoen   did   nothing   to  
discuss,   other   than   the   amounts   set   out   in   the  
retrenchment   package.   In   the   end   he   conceded,   when  
asked about the minutes, the only notes he made were in  
relation   to   the   amounts   to   be   paid.     All   that   was  
discussed was the package.  
17. In   my   view,   an   agreement   obtained   in   such   unfair  
circumstances amounts to a nullity.   I therefore find  
that   the   dismissal   was   both   procedurally   and  
substantively   unfair.     The   applicant   should   be

reinstated.
1. 18. The applicant's attorney argued that I should make  
a   punitive   cost   order   against   the   respondent   for   the  
manner   in   which   the   case   was   conducted,   particularly  
with   reference   to   the   postponement   obtained   for   the  
Friday to obtain the presence of Mr Viljoen.  I do not  
agree   with   the   applicant's   attorney   that   this  
postponement,   the  nature   of  which   regularly  occurs   in  
courts,   should   invite   that   type   of   cost   order.     The  
respondent did tender the wasted costs.  
19. In the circumstances I make the following order:  
1 The   applicant   is   reinstated   in   the   employ   of   the  
respondent on the same terms and conditions which were  
applicable   to   her   on   the   date   her   services   were  
terminated.
2 The   reinstatement   shall   be   with   retrospective   effect,  
but limited to 12 months' payment.
3 The respondent is to pay the applicant's costs of suit  
on the scale as between party and party.
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E. Revelas