Higgs v Natal Wholesale Jewellers (Pty) Ltd (D1361/01) [2003] ZALC 43 (1 May 2003)

45 Reportability

Brief Summary

Labour Law — Overtime pay — Claim for overtime pay by employee — Employee's salary exceeding BCEA thresholds — Court finding that employee failed to establish clear authority from employer to work overtime — Claims for overtime pay dismissed with costs.

IN THE LABOUR COURT OF SOUTH AFRICA
HELD AT DURBAN
  Case No.  D1361/01
In the matter between:
SHARON HIGGS Applicant
and
NATAL WHOLESALE JEWELLERS (PTY) LTD Respondent
                                                                                                                                  
JUDGMENT
                                                                                                                                  
1. This is a matter concerning a disputed claim for overtime pay.   The Labour  
Court has jurisdiction by virtue of the operation of Section 77(3) of the Basic  
Conditions of Employment Act ("the BCEA").
2. The Applicant was employed by the Respondent from the 2 nd  of  March  1999 
until   May  2001,  when  she  resigned.    She  was  so  employed  in  terms  of  a  
written contract of employment entered into between the parties on that date.

3. It is common cause that the Applicant's salary was high enough to exclude  
her   from   the   normal   operation   of   the   clauses   in   the   BCEA   or   any   other  
applicable   wage   determination,   requiring   an   employer   to   remunerate  
employees for overtime by operation of statute.  
4. A   defence   that   the   Applicant   could   not   claim   overtime   because   her   pay  
exceeded the minimum pay applicable in order for the BCEA to be applicable  
was pleaded as a point " in limine ", repeated in paragraph 4 (i) of the pre­trial  
minute as an issue for this Court to decide and again repeated at length in the  
written   closing   argument   submitted   on   behalf   of   the   Respondent   (see  
paragraphs 9, 10 and paragraphs 79 following).
5. This   defence   has   no   merit   because   the   Applicant's   written   contract   of  
employment was common cause in these proceedings.  The relevant clause  
reads as follows :
"You   may   be   required   to   work   overtime   at   Management's  
discretion,   especially   during   the   peak   periods   of   business   for  
example   Easter,   Christmas,   stock­taking   etc.     Overtime   will   be  
compensated for at the rates dictated by current legislation ".

6. Clearly then, the Respondent agreed to pay to the Applicant overtime at the  
prevailing rates in the current legislation when that overtime was worked in  
terms   of   the   agreement.     The   provisions   of   the   legislation   are   therefore  
relevant only insofar as they are a reference point for the rate of payment  
applicable to a claim established in terms of the contract of employment.  The  
fact that the Applicant's rate of pay took her outside of the overtime provisions  
in   either   the   BCEA,   or   the   applicable   wage   determination,   is   an   irrelevant  
factor in the determination as to whether or not she has a claim.
7. What is relevant is whether or not the Applicant has established a claim in  
terms of her contract of employment.  In this regard there is, in my opinion, a  
distinction   between   overtime   worked   at   the   election   of   an   employee   and  
overtime   worked   at   the   election   of   an   employer.     If,   for   example,   a  
professional assistant in a law firm decides to work late into the night, entirely  
of his own volition, in preparation for a court case the next day, he can hardly  
present a bill for overtime work to his employer (I am assuming the existence  
of contractual arrangements similar to the one in this case).  
8. In   order   to   succeed,   the   Applicant   therefore   had   to   demonstrate   clear  
authority from her employer to work overtime in respect of clear requirements

from her employer to do so.  For the reasons which follow I do not believe that  
the Applicant has established the requisite authority:
8.1. The   Applicant   testified   in   support   of   her   claim.     In   support   of   the  
Respondent's defence, two witnesses were called namely Mr   David  Buxton 
(the General Manager at the time) and Mr Barry Kirby (the Financial Manager  
and the person to whom the Applicant reported directly);
8.2. soon after the Applicant commenced employment she found it necessary to  
work extra­ordinary hours because she could not do what she had to do or  
was told to do within normal office hours;
8.3. this required her to work overtime;
8.4. it is common cause that she was paid by the Respondent for some of this  
overtime and in respect of other overtime she concedes that she was given  
time off in lieu of payment;
8.5. in respect of the balance of the overtime (which she now claims) she says  
that she raised this with Mr Kirby, her immediate superior.  Although Mr Kirby

disputed that the Applicant raised with him overtime claims other than the  
ones he agreed to, I come to the same conclusion about the issue even if I  
accept the Applicant's version.  Her evidence was that Mr Kirby said she was  
either not entitled to overtime pay and that her predecessor had not been  
paid overtime, or that he would get back to her but that he always eventually  
said she was not entitled to overtime pay and that it would set a " precedent";
8.6. in my opinion the consistent and early refusal of her employer (through Mr  
Kirby) to pay overtime in respect of the disputed claims must have indicated  
to the Applicant that the overtime was not authorised.   The early refusal to  
pay overtime must have alerted the Applicant to the fact that any overtime  
she   continued   to   work,   in   the   absence   of   clear   authority   to   work   paid  
overtime, was at her own election;
8.7. the fact that the Applicant worked the disputed overtime at her own election  
is consistent with the other evidence that :
8.7.1. the disputed claims formed by far the bulk of her overtime claims;
8.7.2. she left all of these claims out when she formulated and submitted a written

claim to the respondent on the 10 th  of  May 2001 (which Mr Kirby did agree  
to);
8.7.3. the Applicant clearly knew how to claim overtime because, aside from the  
claim on the 10 th of May 2001 she did successfully claim overtime on other  
occasions;
8.7.4. the bulk of her overtime claims (the disputed claims) were never formulated  
and put to the Respondent until after she had terminated her employment  
with the Respondent;
8.8. whilst the Applicant did testify that she was told to do things by the following  
day " no matter how long that took " (and to that extent this was an instruction  
from her employer to work overtime) I am unable to identify and distinguish  
such   claims   from   the   general   body   of   claims   she   presented   in   court  
because :
8.8.1. the   Applicant   did   not   give   evidence   about   each   and   every   claim   on   her  
schedule but focused on an entitlement, collectively, to all of them;

8.8.2. in  respect  of  overtime  worked  she  conceded that  she  had  taken  time  off  
sometimes in  lieu of being  paid overtime, but  there was no  reconciliation  
presented in this regard;
8.8.3. neither did she properly reconcile her schedule of claims set out at pages 59  
to 62 of bundle A.  For example, although the Applicant admitted receiving  
overtime   pay   in   the   sum   of   R8   677,75   pursuant   to   her   written   claim   of  
10  May  2001, all of these claims are duplicated in her schedule of claims  
and are therefore illegitimate;
8.8.4. the evidence establishes that not all deadlines were given at the end of a  
particular working day, for the next day.  Many of the deadlines were in fact  
agreed   deadlines   which   arose,   so   Mr   Kirby   testified,   " in   the   nature   of  
accounting"   read   together   with   the   schedule   of   agreed   dates   for   the  
performance of various things by the Applicant following a meeting with her  
in that connection.
9. In the premises and on the totality of the evidence, the Applicant has not, in  
my opinion, demonstrated that the overtime she claims was worked in terms

of a clear authority from her employer.   In the result her claims for overtime  
must fail.
10. At   the   commencement   of   the   trial   in   this   matter   I   was   informed   that   the  
Applicant   was   proceeding   only   in   respect   of   the   claim   for   overtime.     No  
evidence was therefore led by either party in regard to the claim for notice  
pay.  Paragraph 1.2 of the pre­trial minutes records an agreement in regard to  
the   claim   for   notice   pay.     I   asked   the   representatives   for   both   parties   if   I  
should make any order for costs in regard to this claim but, in view of the  
aforegoing, it would be inappropriate to do so.
11. In the result I make the following order :
11.1. the Applicant's claims for overtime pay are dismissed with costs.
DATED at DURBAN this                   day of MAY 2003.
_____________________

N P WOODROFFE AJ