Sing Li v Omega Holdings Ltd (JS 591/02) [2003] ZALC 36 (25 April 2003)

57 Reportability

Brief Summary

Labour Law — Jurisdiction — Claims for unfair dismissal and money claims — Applicant alleging unfair dismissal and seeking money claims against Respondents — Respondents contesting jurisdiction based on lack of conciliation under BCEA — Court finding that Labour Court has concurrent jurisdiction to determine claims related to employment contracts irrespective of BCEA provisions — Respondents' points in limine dismissed.

IN THE LABOUR COURT OF SOUTH AFRICA
(HELD AT BRAAMFONTEIN)
  Case No.  JS 591/02
In the matter between:
PATRICK C SING LI Applicant
and
Omega Holdings Ltd First Respondent
SHANGHAI INDUSTRIAL INVESTMENT (HOLDINGS)
COMPANY LIMITED Second Respondent
JUDGMENT
                                                                                                                                  
1. The Applicant in this matter has instituted proceedings in this Court against  
the   Respondents,   alleging   that   he   was   unfairly   dismissed   for   operational  
requirements and, in addition, the Applicant has a number of money claims  
against the Respondents.
2. It is in connection with these latter claims that the Respondents take issue,  in  
limine, contending that this Court lacks jurisdiction to entertain these claims.

The basis for this contention is that this Court only has jurisdiction to entertain  
the claims in question if they have been conciliated by the CCMA.  Because it  
is   common   cause   that   they   were   not,   the   contention   is   that   this   Court  
accordingly lacks jurisdiction.
3. The claims in question are set out in paragraphs 16, 17, 18 and 19 of the  
Statement of Case.  I do not intend to repeat what is pleaded.
4. The   Respondents   say   that   Section   74   (2)   of   the   Basic   Conditions   of  
Employment Act ("the BCEA") is applicable to the aforesaid claims (which I  
shall refer to from now on as the ("money claims").   If the Respondents are  
right then there is a difficulty for the Applicant because none of the money  
claims have been conciliated in terms of the Labour Relations Act.
5. The applicable portions of Section 74 (2) of the BCEA reads as follows :
"If   an   employee   institutes   proceedings   for   unfair   dismissal,   the  
Labour   Court   or   the   Arbitrator   hearing   the   matter   may   also  
determine any claim for an amount that is owing to that employee  
in terms of this Act if –

a the claim is referred in compliance with Section 191 of the  
Labour Relations Act, 1995; … "
6. It was submitted by Counsel for the First and Second Respondents that even  
if   the   Applicant   labels   his   claims   " contractual"   these   claims   would   only   be  
enforceable   in   this   Court,   by   virtue   of   Section   77   (3)   of   the   BCEA   and  
therefore, in the premises, the Applicant's claims " quite obviously " constitute  
claims   in   terms   of   the   BCEA,   within   the   meaning   of   Section   74   (2)   of   the  
BCEA.
7. I do not agree that a reliance on Section 77 (3) of the BCEA in order to invoke  
jurisdiction   automatically   means   that   the   claims   in   question   are   therefore  
claims   in   terms   of   the   BCEA   within   the   meaning   of   Section   74   (2)   of   the  
BCEA.     In   fact,   Section   77   (3)   says   precisely   the   opposite.     The   section  
reads :
"The Labour Court has concurrent jurisdiction with the Civil Courts  
to   hear   and   determine   any   matter   concerning   a   contract   of  
employment,   irrespective   of   whether   any   basic   condition   of  
employment constitutes a term of that contract "  (my underlining).

8. Quite clearly then the Labour Court has concurrent jurisdiction to determine  
any matter concerning a contract of employment and it does not matter that  
the   issue   in   question   does   not   involve   a   basic   condition   of   employment  
covered by the BCEA.  This is consistent with the provisions of Section 4 of  
the BCEA which provides that a basic condition of employment constitutes a  
term of any contract of employment except to the extent that :
"… a term of the contract of employment is more favourable to the  
employee than the basic condition of employment ".
Therefore  the  only  requirement   in  order  to  found  jurisdiction  is  that  the  
matter must relate to a contract of employment.
9. Section 74  (2)  of the BCEA is therefore, in my  opinion, not necessarily of  
application to all matters in respect of which the Labour Court has concurrent  
jurisdiction with the High Court in terms of Section 77 (3) of the LRA.  That is  
so because Section 74 (2) is only of application where, firstly, the claims are  
linked to proceedings for unfair dismissal and, secondly, where the claim is  
for :

"an amount that is owing to that employee in terms of this Act … ".
10. In this matter the money claims are linked to a dismissal, but the Applicant  
does not plead reliance on the BCEA in order to found those claims.   The  
money claims are founded in the contract alleged between the parties.  It may  
be so that some of these claims also straddle certain sections of the BCEA  
but the pleader places no reliance on those sections in order to found the  
money claims.   Accordingly, the Applicant does not plead that these claims  
are in respect of amounts due to the Applicant in terms of the BCEA.   The  
claims   all   arise   and   are   so   claimed,   so   the   Applicant   says,   in   terms   of   a  
contract   of   employment   between   the   parties.     Therefore,   in   my   opinion,  
Section 74 (2) is of no application to these claims.  
11. Section   77   (3)   of   the   Labour   Relations   Act   gives   this   Court   a   concurrent  
jurisdiction   with   the   Civil   Courts   to   " hear   and   determine   any   matter  
concerning   a   contract   of   employment,   irrespective   of   whether   any   basic  
condition of employment constitutes a term of that contract ".
12. This   Court   therefore   has   jurisdiction   to   entertain   those   claims   set   out   in  
paragraphs 16, 17, 18 and 19 of the Statement of Case by virtue of Section  
77  (3) of the BCEA.  That is, in fact, the section pleaded by the Applicant as

founding jurisdiction in regard to these claims.
13. The only reference to any obligation to conciliate a claim before the Labour  
Court in Part B of Chapter 10 of the BCEA is to be found in Section 74 (2).  It  
follows that if Section 74 (2) is not applicable then there is no obligation to  
conciliate   the   claim   because   the   Labour   Court   has   jurisdiction   in   terms   of  
Section 77 (3) of the BCEA.
14. In the result the Respondents' points  in limine  are dismissed with costs.
DATED at DURBAN this   25th   day of APRIL 2003.
_____________________
N P WOODROFFE AJ