Chiloane and Others v Rema Tip Top Industrial (Pty) Ltd (J5981/01) [2002] ZALC 71; [2002] 11 BLLR 1066 (LC) (27 August 2002)

55 Reportability

Brief Summary

Labour Law — Unfair retrenchment — Applicants alleging unfair retrenchment after accepting voluntary packages — Respondent asserting valid agreements in full and final settlement — Court finding that Applicants voluntarily signed agreements and accepted packages, thus no dismissal occurred as per section 186 of the Labour Relations Act — Application dismissed.

IN THE LABOUR COURT OF SOUTH AFRICA                 
              REPORTABLE   
HELD AT JOHANNESBURG
Case No.   J5981/01
In the matter between:
CHILOANE, JARLOS AND OTHERS  
Applicant
and
REMA TIP TOP INDUSTRIAL (PTY) LTD   
Respondent
J U D G M E N T
NTSEBEZA AJ:
1. This is an application in which there is a claim of unfair retrenchment by  
the   Applicants,   which   they   allege   occurred   on   15   June   2001.     The  
Applicants deny accepting a voluntary package and allege that any monies  
that they took were taken on a without prejudice basis.   They deny that  
they signed any documents in full and final settlement of their claims.   In

Court   the   Applicants’   representative,   Mr   Luthuli,   requested   the   Court   to  
allow the Applicants’ to lead oral evidence of what happened to them in  
relation to their alleged retrenchment.   He was keen to demonstrate that  
there was no valid agreement that had been arrived at between the parties  
and that the effort by the  Respondent  to  raise  a point   in  limine , to that  
effect,   was   a   ploy   on   his   part   to   prevent   the   Court   from   hearing   the  
Applicants’ case.
2. The Respondent on the other hand has raised a point  in limine  in which it  
argues that there has been a consensual termination of the employment  
relationship   since   the   Applicants   entered   into   written   agreements   with  
Respondent,   in   full   and   final   settlement   of   all   claims,   and   accepting   a  
voluntary   retrenchment   package.     Ms   da   Costa,   who   appeared   for   the  
Respondent,   argued   that   there   are   contracts   in   place,   which   remain   in  
place   until   they   have   been   vitiated   by   the   Applicants.     The   Applicants  
cannot   seek   to   withdraw   from   those   contracts   without   bringing   an  
application to set the agreements aside.  Further, the voluntary packages  
which were received by the Applicants, so argued Ms da Costa, have not  
been tendered by them.
3. Ms da Costa submitted that it was common cause between the parties that  
the Applicants had attended meetings with the Respondent on 10, 17 and

29   May   2001   and   on   5   and   12   June   2001.     The   Applicants   had   been  
represented by one Mkhize and one Luthuli at the meetings in May and in  
June.  The minutes of these meetings, which form part of the bundle, were  
admitted by both parties  to be  a true reflection of  what occurred at the  
meetings.   Ms da Costa submitted that the Applicants admitted that they  
had attended at the offices of the Respondent on 14 June 2001 where all  
of them, except Mr Chiloane, signed the written agreements in full and final  
settlement in respect of voluntary retrenchment.  Chiloane had signed the  
agreement but had included the words,   “I am not satisfied.   But I am  
forced   due   to   lay­off.   ( sic!)   I   will   like   to   go   ahead,   ….” .     The  
Respondent did not accept this qualification whereafter on 18 June 2001  
Chiloane returned and signed the agreement unconditionally and without  
any complications.   Ms da Costa submitted that the Applicants, ­and this  
was   common   cause   according   to   her,   ­had   accepted   the   voluntary  
package   which   offered   two   weeks   per   completed   year   of   service,   as  
opposed to one week per completed year of service as had been offered  
during the two meetings between the parties.
4. The   Applicants   had   received   the   following   voluntary   retrenchment  
packages   which   included   notice   pay   and   leave   pay,   according   to   the  
submission by Ms da Costa which she argued was common cause:­

Jarlos Chiloane ­ R  5 415,32
Bongani Mgeza ­ R18 706,68
Leonard Makhathini ­ R10 881,47
Lloyd Manmyatha ­ R  7 878,76
5. Insofar   as   the   Applicants   were   now   seeking   to   allege   that   they   were  
“forced”  to   sign   the   said   written   agreements   and   that   they   should  
therefore not be bound by them, and insofar as they have not tendered the  
return   of   their   retrenchment   packages   received   in   terms   of   these  
agreements that had been signed, and insofar as the Applicants have not  
alleged   how   they   were   “forced”  to   sign   the   agreements,   Ms   da   Costa  
submitted that the only inference that flows from these circumstances is  
that the parties had entered into valid binding agreements that terminated  
their employment relationship by consent as between the parties.   There  
was   no   question   of   an   unfair   retrenchment   and   the   written   agreements  
were   in   full   and   final   settlement   of   any   and   all   claims   against   the  
respondent   arising   out   of   the   mutual   termination   of   their   employment  
relationship.  Insofar as an employee who validly agrees to the termination  
of his employment contract cannot be said to have been dismissed, the  
Applicants   have   no   case   in   respect   of   unfair   retrenchments   since   no  
dismissal as envisaged by section 186 of the Labour Relations Act No. 66  
of 1995 (“the Act”) has taken place.   On that basis, Ms da Costa argued

that the point   in limine   must be upheld.   For authority for the proposition  
that an employee who validly agrees to the termination of his employment  
contract cannot be said to be dismissed, I was referred to  United Tobacco  
Co Ltd v Baudach  1997 [18] ILJ 506 [LAC].
6. Ms   da  Costa  also  referred   to   Ackrow   and   Another   v   Northern   Province  
Development   Corporation   [1998]   BLLR   916   [LC]   at   920F­G,   where   my  
sister Ms Justice Revelas stated the following:
“The employment relationship between the parties in this matter was  
terminated   by   agreement.     The   applicants   were   not   dismissed   and  
therefore   there   was   no   termination   of   service   for   operational  
requirements.”
In another case referred  to  by Ms da Costa,   Kynoch Feeds  (Pty) Ltd  v  
CCMA and Others   [1998] 19 ILJ 836 [LC] at 849G­H my sister Revelas  
again stated that an agreement between an employer and an employee to  
terminate a contract of employment is not a   “dismissal”  as defined by  
section 186(a) of the Act, or in any other sense.
7. Having read and perused all the documents and the points not in dispute  
not having been contested by Mr Luthuli to be in dispute, I am satisfied

that the Applicants fully and voluntarily entered into and signed the written  
agreements   terminating   their   employment   relationships   and   that   they  
accepted the voluntary retrenchment packages.  I reject the allegation that  
they   were   “forced”  to   sign   the   written   agreements.     I   accept   the  
submission that they were all aware of their rights when they agreed to  
accept the voluntary retrenchment packages.   In the circumstances, the  
point  in limine  succeeds. The application is dismissed.  None of the parties  
argued for costs even though in the pleadings the Respondent asked for a  
punitive costs order against the Applicants jointly and severally.  Since that  
was not pursued in this Court, I will not order any costs. There is therefore  
no order as to costs.
___________________________
D B NTSEBEZA
ACTING JUDGE OF THE LABOUR COURT
Date of hearing: 24  July 2002
Date of Judgment:  27 August 2002
For the Applicants: MR LUTHULI

United Peoples Union S.A.
P O Box 61651
MARSHALLTOWN
2107
For Respondent: ADV M B G DA COSTA
Instructed by  GRANT RAE ATTORNEYS
P O Box 3913
EDENVALE
1610