Knightwatch Security (Pty) Ltd v Mbileni, N N.O. (cited in her capacity as commissioner of the Commission for Conciliation, Mediation and Arbitration) and Others (JR 806/2001) [2002] ZALC 72; [2002] 11 BLLR 1075 (LC); (2002) 23 ILJ 2063 (LC) (27 August 2002)

60 Reportability

Brief Summary

Labour Law — Review of arbitration award — Application for review of CCMA award finding employees unfairly dismissed — Court finding no evidence of employment or dismissal on alleged date — Arbitrator's failure to consider substantial documentary evidence and misdirection regarding legitimate expectation — Award set aside and finding substituted that employees were not employed by the Applicant.

IN   THE   LABOUR   COURT   OF   SOUTH   AFRICA  
REPORTABLE
HELD AT JOHANNESBURG
Case No.   JR 806/2001
In the matter between:
KNIGHTWATCH SECURITY (PTY) LTD  
Applicant
and
MBILENI, N N.O. (cited in her capacity as commissioner
of the Commission for Conciliation, Mediation and
Arbitration)           First  
Respondent
THE COMMISSIONER FOR CONCILIATION, MEDIATION
AND ARBITRATION Second 
Respondent
MDIDIMA, P & 5 OTHERS         Third   and   Further  
Respondents
J U D G M E N T
NTSEBEZA AJ:
1. This matter came before me on 21  June  2002  when I ordered that the  
matter be postponed  sine die  because the papers were not in order.  The

contents   of   the   review   application   were   missing   from   the   file   and,  
according   to   Mr   Snyman,   who   appears   for   the   Applicant,   the  
disappearance of file contents in this matter had become the rule more  
than the exception.   Indeed, on 27 June 2002 my brother, Sutherland AJ  
asked Mr Snyman to file an affidavit giving a history of why it appeared  
documents   seemed  to  be  disappearing  from  the   Court  file  and   that  the  
matter   was   being   delayed   from   being   finalised.     Sutherland   AJ   also  
ordered that Mr Snyman once again prepare documents for the Court file  
and   that   the   Registrar   should   not   release   the   Court   file   out   of   his/her  
control.   The matter was set down for 25 July 2002 when it again came  
before me.  Mr Snyman duly complied with this Court order and, on 25 July  
2002, the documents that were filed as copies of the originals which had  
disappeared out of the Court file, were the Applicant’s heads of argument  
filed   on   7  June   2002   and   an   entire   Court   file   bundle   containing   all   the  
indexed pleadings which had been filed on 7 June 2002, which bundle has  
an index and 175 bound pages.
  
2. I may indicate here that when the matter was heard, Mr Ndzimande, who  
appeared on behalf of the Third and Further Respondents, claimed that he  
had not been served, by Mr Snyman, with any documents for the hearing  
on 25 July 2002.  Mr Snyman produced another Court file bundle which he  
handed over to Mr Ndzimande.   Mr Snyman claimed that he had in fact

given   the   same   Court   file   bundle,   indexed   and   paginated,   to   Mr  
Ndzimande on 7 June 2002.  It is not for me to investigate and decide on  
the circumstances surrounding the disappearance of documents from the  
Court file, save only to remark that this is an extraordinary occurrence and  
does   not   augur   well   for   the   administration   of   justice.     It   also   begs   the  
question as to how it is possible for documents to disappear out of the  
Court file with such regularity as has been testified to by Mr Snyman in the  
affidavit which my brother Sutherland ordered him to file.  It is a matter of  
grave   concern,   and   one   which   the   Registrar   of   this   Court   must   take  
particular notice of.  The affidavit of Mr Snyman is a serous indictment and  
it would be hoped that definite steps are being taken in the office of the  
Registrar to ensure that occurrences of this nature do not take place.
3. This   is   an   application   for   the   review   of   an   arbitration   award   by   a  
commissioner   of   the   Commission   for   Conciliation,   Mediation   and  
Arbitration   (“the   CCMA”)   in   terms   of   section   145(1)(a),   145(1)(b)   and  
145(2) of the Labour Relations Act, No. 66 of 1995 (“the Act”).   The said  
arbitration  award  was  handed  down  by  Commissioner Mbileni  (the  First  
Respondent)   in   terms   whereof   the   Third   and   Further   Respondents  
(hereinafter   referred   to   as   “the   employees”)   were   found   to   have   been  
unfairly dismissed and were awarded compensation.  The Applicant seeks  
to set aside that finding.

4. The employees allege that they were unfairly dismissed by the Applicant  
on 22 August 2000.  The Applicant posts security guards at the premises  
of its customers whose property it safeguards.  From time to time, and for  
a   variety   of   reasons   –   Applicant’s   permanent   guards   being   off   duty,   or  
being off sick, or being on leave ­­­ the Applicant procures the services of  
casual guards to fill in the particular posts for the particular day.   These  
“casuals”  are   normally   selected   from   a   group   of   guards   who   usually  
gather   at   the   Applicant’s   premises   hoping   to   be   selected   for   a   casual  
position for the day.  All casuals so appointed by the Applicant get posted  
and are paid for the day so posted.  Simply put, there was always a large  
“pool” of casuals from which the Applicant was able to fill daily posts that  
became vacant on a day­to­day basis.
5. Due to discrepancies that developed in this system of selecting casuals  
from   a   pool   of   people   who   would   merely   gather   at   the   gates   of   the  
Applicant’s   premises,   the   Applicant   decided   to   conclude   independent  
contracts with a group of casual employees in terms whereof they would  
be appointed for a specific period of time to work as and when required by  
the Applicant during such periods.  It is from such  “casual pool”  that the  
employees in this application were drawn.  According to the Applicant, all  
the   employees   were   appointed   on   the   first   occasion   on   the   basis   of   a  
casual position for one day on either 29 June or 3 July 2000 respectively.

They were given letters of appointment for the one day.   Subsequent to  
this first appointment, they continued to work on an  ad hoc  basis, and from  
time to time, as and when required to fill a vacant post, being a part of the  
group of casuals gathered at the Applicant’s premises every day.
 
6.   In this regard, casual job sheets were made out for each day’s work in  
respect of each of the individual employees.  From the documents filed as  
part   of   the   Court   bundle,   it   is   clear   from   these   documents   that   the  
employees only worked on an   ad hoc   basis.   Towards the middle of July  
2000 the Applicant had vacancies for permanent staff appointments.  The  
casual workers were invited to apply for such posts, by way of agreeing to  
undergo   a   free   two­day   course,   with   the   Applicant   in   selecting   the   top  
performers on such courses as permanent employees.   All the individual  
Respondents applied in writing.   These courses took place on 18 and 20  
July and 19 and 21 July respectively.The employees were not successful  
in  obtaining  permanent positions, having  failed to complete the  relevant  
courses.  Only one of them actually completed the course but he also was  
unsuccessful in obtaining employment.  Having failed to obtain permanent  
employment, the employees however remained part of the  “casual pool” .
7. The Applicant has given a detailed account of how these employees were  
engaged  by  it.     For  an  example,   one  Price  Mdidimba,   according   to  the

Applicant, applied for employment on 29 June 2000.  His application was  
not successful.   He was however given casual jobs from time to time, as  
part of the casual pool.  He worked on 29 June and on 6, 7 and 8 July.  He  
again applied for a permanent position as part of the 19 and 21 July 2000  
test   candidates   referred   to   herein   above.     He   did   not   succeed   in   his  
employment application and was not appointed.   He was then appointed  
on   a   fixed   term   contract   of   employment   from   17   November   to   16  
December 2000 which contract was signed by him.  His fixed term contract  
of   employment   terminated   on   15   December   2000   which   fact   was  
confirmed in writing to him on 8 January 2001. 
8.  The Applicant has similar details in respect of Dyson Maluleke, Meshack  
Mashiola,   Simiso   Dalton   Ndzimande   and   one   George   Mncube.     In   the  
Applicant’s   submission,   no   evidence   whatsoever   exists,   nor   was   any  
presented by any of the employees to, illustrate or prove any dismissal on  
22 August 2000, which is their only stipulated date of dismissal.  All of the  
allegations by the Applicant are fully supported by substantial documentary  
evidence   and   it   does   appear   that   all   of   this   evidence,   including  
documentary support thereof, was placed before the First Respondent (the  
arbitrator).  The criticism of the arbitrator’s award is the fact that it does not  
seem to refer to this substantial documentary evidence presented to him  
nor does it fully record the evidence available to it.  The further criticism is

that the arbitrator failed also to appreciate the fact that the employees had  
the onus to prove that they had been employed, as well as the existence of  
a   dismissal,   all   of   which   had   always   been   in   dispute.     See   Lewis   and  
Another   v   Contract   Interiors   CC   (2001)   22   ILJ   466   (LC);     Ngcobo   and  
Others   v   Blyvooruitzicht   Gold   Mining   Co.   Ltd   (1999)   20   ILJ   1996   (LC);  
Sappie Kraft (Pty) Ltd t/a Tugela Mill v Majake N.O. and Others  (1998) 19  
ILJ 1240 (LC).
9. Mr Snyman submitted that the failure by the arbitrator to even record all  
the evidence which was placed before her was a gross irregularity and a  
clear indication of her fundamental failure to apply her mind to the facts  
before   her.     Consequently,   the   arbitrator’s   award   being   neither   in  
accordance with or supported by the bulk of the evidence properly before  
it, is irregular, unreasonable and unjustifiable.  All evidence shows that the  
employees   signed   one­day   contracts   of   employment,   each   of   which  
expired on each of the days that they were contracted for.  Where there is  
no evidence, either by way of a letter of dismissal or any particulars given  
by  the   employees  concerning   an   alleged  dismissal   on   22   August  2000,  
and where there is no evidence by any of the employees that they in fact  
worked on a continuous basis from the end of June/beginning of July until  
22 August 2000, their purported date of dismissal, it is totally unreasonable  
for the arbitrator to record, as she did, that all the employees worked from

either 29 June or 3 July until 22 August 2000 when they were dismissed.  
Further,   argued   Mr   Snyman,   if,   as   they   allege,   the   employees   were  
permanent as from either 29 June and/or 3 July 2000, why did they apply  
for positions as part of the programme on 18 and 20 and 19 and 21 July  
2000?  This is an inconsistency that should have been taken into account  
by the arbitrator, and to the extent that she did not do so, to that extent it  
shows that she did not apply her mind at all to this evidence and therefore  
acted in an irregular, unreasonable and unjustifiable manner.
10. Mr   Snyman   further   argued   that   the   arbitrator   misdirected   herself   by  
concluding that because the Applicant   “allowed”  the employees to work  
beyond   their   initial   one­day   contracts   the   Applicant   had   created   a  
“legitimate   expectation”   that   their   services   would   not   be   terminated  
without due process.   This was a misdirection because it was never the  
contention of the employees that they had been employed as   “casual” 
employees   who   had   developed   an   expectation   of   being   classified   as  
permanent  employees.     At   all   material   times  they  had  been  contending  
that   they   had   been   appointed   as   permanent   employees   and   were  
dismissed without reason or process.  Mr Snyman also contended that in  
any event, section 186 of the Act does not provide for alleged legitimate  
expectation of due process.   It provides for an expectation of continued  
employment.   Where the employees themselves contend that they were

permanent employees from the outset, there can be no room for arguing  
that they had an expectation of continued employment.  Mr Snyman finally  
submitted that in none of the responses in their answering affidavits do the  
employees in any way contradict the factual averments made on behalf of  
the Applicant.   To that degree, therefore, such factual evidence must be  
accepted as uncontradicted evidence.
11. Mr Ndzimande, on behalf of the employees, did no more than merely state  
to me that they were permanently employed because their employer had  
told them so.  According to him, the company had given them application  
forms and had told them that they were being employed permanently.  He  
provided as   “proof”  that they had been employed the fact that they had  
referred their matter to the CCMA.  In his argument, he asked a question  
as to how they could have been before the CCMA if they had never been  
employed.  He argued that the matter should not revert to the CCMA but  
must   be   dealt   with   to   finality   in   this   Court   and   he   made   a   prayer   for  
compensation and reinstatement.
12. On the evidence before me, and on the documentation provided, there is  
no support for any of the contentions made by Mr Mdzimande on behalf of  
himself  and his  colleagues.    I   find  as  a  matter  of  fact  and law   that  the  
arbitrator’s award cannot stand.  It is reviewable and must be set aside.

Insofar as  the arbitrator,  in ordering compensation to be  paid,  does  not  
appear to be motivating or giving reasons for its compensation award, this  
constitutes   an   irregularity,   rendering   its   award   reviewable,   argued   Mr  
Snyman.  Mr Snyman referred me to a number of authorities in support of  
his submission that it is incumbent upon an arbitrator to properly motivate  
a determination of the quantum of compensation to be awarded in favour  
of a successive party.   La Vita v Boymans Clothiers (Pty) Ltd  (2001) 22 ILJ  
454  (LC);     Zeelie  v  Price  Forbes  (Northern  Province)   (2001)  (1)  22  ILJ  
2053 (LC);    Alpha Plant and Services (Pty) Ltd v Simmonds and Others  
(2001) 22 ILJ 359 (LAC).
13. It is not necessary for me to refer to any of the authorities quoted to me by  
Mr Snyman to any great length.  I accept that in the view that I have taken  
of the matter, the arbitrator did not exercise her discretion judiciously in her  
award of compensation for all the reasons submitted by Mr Snyman.   In  
the result, the order is as follows:
(a) The award  of the First  Respondent,  being Commissioner Mbileni   of the  
Second Respondent, under Case No. GA 108298, dated 13 May 2001, in  
the   arbitration   proceedings   between   the   Applicant   and   the   Third   and  
Further Respondents is hereby reviewed and set aside;

(b) The   finding   that   “the   dismissal   of   the   Applicants   was   unfair”   in   the  
award of the arbitrator is substituted by a finding that none of the Third and  
Further   Respondents   were   employed   by   the   Applicant,   and   the   CCMA  
accordingly has no jurisdiction to entertain the matter;
(c) The   order   of   compensation   is   substituted   by   the   order   that   there   is   no  
compensation due to any of the Third and Further Respondents.
___________________________
D B NTSEBEZA
ACTING JUDGE OF THE LABOUR COURT
Date of hearing: 25 July 2002
Date of Judgment:  27   AUGUST 2002
For the Applicants: MR SNYMAN
On behalf of Snyman van der Heever Heyns
Isle of Houghton, Harrow Court 1
Boundary Road, Houghton

P O Box 280 Parklands, 2121
For Respondents: MR S D MDZIMANDE
On behalf of  MDIDIMA & OTHERS
Extension 7A, Orange Farm
P O Box 12156 Orange Grove, 1805