Salvation Army (South African Territory) v Minister of Labour (J 464/02) [2004] ZALC 64; (2005) 26 ILJ 126 (LC); [2004] 12 BLLR 1264 (LC) (2 September 2004)

60 Reportability

Brief Summary

Labour Law — Employment status — Declaratory order — Salvation Army seeking a declaration that its officers are not employees under the Labour Relations Act — Officers join voluntarily and sign an undertaking excluding an employment relationship — Court finding that the nature of the relationship is spiritual and not contractual, thus officers are not employees as defined by the relevant legislation.

IN THE LABOUR COURT OF SOUTH AFRICA
HELD AT JOHANNESBURG
Case No.: J 464/02
In the matter between
THE SALVATION ARMY 
(SOUTH AFRICAN TERRITORY) Applicant
and 
THE MINISTER OF LABOUR Respondent
JUDGMENT
MAYA AJ:
[1] The applicant is a worldwide church organisation operating also  
in South Africa.  It is regulated by covenants, orders and regulations, a  
constitution   and   an   enactment   of   the   Parliament   of   the   United  
Kingdom,   The   Salvation   Army   Act   of   1980.     It   describes   itself   in  
terms of this Act, as a “ body corporate not for gain with perpetual  
succession with the power to acquire rights and incur obligations, to  
acquire, hold and dispose of property, to enter into contracts and to  
sue and be sued in its own name, independently of its members, who  
are   not   liable   for   its   debts,   and   have   no   rights   to   its   assets ”.     Its  
primary   objective   is   to   advance   the   Christian   religion   and,   in

pursuance thereof, to carry out acts of charity and humanitarian relief,  
to aid suffering humanity.  Its leadership is  carried out  by its clergy,  
called Officers who are ordained and  commissioned   ministers   of  
religion.  It also engages a number of employees, a majority of whom  
are unionised under various trade unions in the country, who do not  
necessarily have religious ties to it, but perform specific duties in the  
conduct   of   its   affairs   in   terms   of   the   contracts   of   employment   it  
concludes with them.
[2] It seeks a declaratory order that its officers are not employees as  
defined in the   Labour Relations Act, 66 of 1995   (“the LRA”, the  
Basic Conditions of Employment Act,75 of 1997  (“the BCEA”), the  
Employment   Equity   Act,   5   of   1998   (“the   EEA”),   the  
Unemployment Insurance Act, 30 of 1966   (“the UIA”), the   Skills 
Development   Levies   Act,   9   of   1999   (“the   SDLA”),   the   Skills 
Development   Act   (“the   SDA”),   97   of   1998   and   the  
Compensation for Occupational Injuries and Diseases Act , 
103  of 1993 (“the COIDA”); and that the  provisions   of   these  
statutes are not applicable to the said officers.
[3] The   respondent,   the   Minister   of   Labour,   who   is   cited   in   his  
capacity as the official in charge of the Department vested with the  
administration of this legislation, did not oppose the application  
on   condition   that   the   relief   sought   with   reference   to   the   SDLA   be  
withdrawn.     The   applicant   accordingly   withdrew   the   relevant

prayer.
[4] The basis of the application is that the applicant does not treat  
its officers as employees.  Officers join the Salvation Army as cadets  
on a voluntary basis, in response to a call of God to spiritual ministry.  
They  are   trained   for   several   years.     Upon   ordainment   they   sign  an  
undertaking   which   explicitly   excludes   an   employee/employer  
relationship, providing as follows:
“I give myself in response to the call of God and on my  own  
free will to the ministry of the Salvation Army, and  in 
doing so I acknowledge that as an officer I regard the fundamental  
nature   of   my   relationship   to   the   Army   as   spiritual….     I  
understand   that   there   is   neither   a   contract   of   service   or  
employment nor a legal relationship between me and the Army,  
and accordingly I shall have no legal claims upon the Army or the  
Army   upon   me.     I   understand   and   agree   that,   although   I   may  
expect   to   receive   allowances   according   to   an   official   scale,   no  
allowance is guaranteed to me.  I accept that  any   such  
allowance is not a wage, salary, reward or  payment   for  
services rendered. ”
[5] The applicant does not therefore implement and comply with  
the above labour legislation on behalf of the Officers. For example, it  
does   not   make   unemployment   insurance   payment,   did   not   file   an  
employment   equity   plan,   does   not   make   payments   to   the  
Compensation Commissioner and does not pay skills levies on  their 
behalf.  It is thus concerned that should its interpretation of the word  
“employee” be wrong, severe consequences will follow in  the 
form of deductions and payment of interest and penalties for failure to

comply with the relevant law.  Reference was made to a notice issued  
against the applicant by the Compensation  Commissioner warning it  
for failure to report an accident  and  injuries   allegedly   sustained   by  
an alleged “employee”.  Further reference was made to an unreported  
case   decided   by   the   CCMA,   Morris   Ndarha   and   Another   v   The  
Salvation Army ,  Case No.:  KN   64726   where   two   Officers  
referred a dispute which was decided in the applicants’ favour on an  
objection   in   limine   raised   by   the   latter,   that   the   parties   had   not  
concluded   an   employment   contract   and   that   the   Officers   were   not  
employees of the applicant.
[6] Section 158  of the  LRA sets   out   the   powers   vested   in   the  
Labour Court.    Section 158(1)(a)(iv)   thereof empowers the court to  
make a declaratory  order.   It is now established that this power  
is similar to that conferred upon the High Court to make such an order  
in terms of section   (19)(1)(a)(iii) of the Supreme Court Act, 59 of  
1959  and   that   the   approach   adopted   by   the   High   Court   in  
making  such orders  should be applied by the Labour Court.  See:  
NUMSA   v   CCMA   &   Others   [2000]   11   BLLR   (LC   )   at  
1331J­1332A. 
[7] Section 19(1)(a)(iii) of the Supreme Court Act  reads:
“A   provincial   or   local   division   …shall   …   in   addition   to   any   powers   or  
jurisdiction which may be vested in it by law, have power in its discretion,

and at the instance of any interested person, to enquire  into   and   determine  
any existing, future or contingent right or obligation, notwithstanding that  
such person cannot claim any  relief   consequential   upon   the  
determination.”
[8] The   test   which   a   court   faced   with   an   application   for   a  
declaration of rights is set out in decided cases such as that of  Shoba v  
Officer  Commanding,   Temporary   Police   Camp,   Wagendrift  
Dam 1995 (4) SA 1 (AD)  where Corbett CJ said at 14F­I:
 
“Generally speaking, the Courts will not, in terms of s 19(1)(a)(iii), deal with  
or   pronounce   upon   abstract   or   academic   points   of   law.   An   existing   or  
concrete dispute between persons is not a prerequisite for the exercise by the  
Court of its jurisdiction under this subsection, though the absence of such a  
dispute may, depending on the circumstances, cause the Court to refuse to  
exercise its jurisdiction in a particular case (see Ex parte Nell 1963 (1)   SA 754  
(A) at 759H­760B).  But because it is not the function of the Court to act as an  
adviser, it is a requirement of the exercise of  jurisdiction   under   this  
subsection that there should be interested parties upon whom the declaratory  
order   would  be  binding  (Nell’s  case,  at  760B­C).    In Nell’s   case,  supra  at  
759A­B,   Steyn   CJ   referred   with   approval   to   the   following   statement   by  
Watermeyer JA in Durban City Council v Association of Building Societies 
1942 AD 27, at 32, with reference to the identically worded s 102 of the  
General Law Amendment Act 46 of 1935: ‘The  question whether or not an  
order should be made under this section has to be examined in two stages.  
First the Court must be satisfied that the applicant is a person interested in  
an “existing, future or contingent right or obligation”, and then, if satisfied  
on that point, the Court  must decide whether the case is a proper one for  
the exercise of the discretion conferred on it’.”

the exercise of the discretion conferred on it’.”      
See also ex parte   Chief Immigration Officer, Zimbabwe   1994 (1)  
SA 371 (ZS) at 376E­377F.
[9] It was contended on the applicant’s behalf,  inter alia , that:

• It is an interested party with an interest in both an existing and future  
right   and   obligation   and   has   locus   standi   to   bring   the   application  
because the legislation in issue places an obligation on it to perform  
certain acts and pay certain monies; the declaration sought is therefore  
part and parcel of its obligations;
• The status of its officers is not defined statutorily or in common law;
• Its dispute with the Compensation Commissioner is one of the factors  
which warrants the grant of the declarator which shall be binding on  
all interested parties; and 
• It has no alternative remedy except to argue this issue at various forae  
whenever a dispute arises; a grant of the declarator at this stage will be  
more practical and ensure a saving on legal costs as it will bring about  
legal certainty on the relevant issue.
[10] It   seems   to   me   on   a   consideration   of   these   submissions   and  
other  relevant facts alleged by the applicant in its papers that the issue  
raised is a live and important one which no doubt will at some 
stage come  before this court or another appropriate forum.  It is  
also   undoubted   in   the   circumstances   that   despite   the  
undertaking which the Officers sign on ordainment there is real 
uncertainty  and some measure of anxiety in the minds of the  
relevant parties.  I am satisfied therefore that the applicant has 
established suitable circumstances which render a ruling on the 
issue necessary.

[11] It now remains to determine the nature of the relationship which  
exists between the applicant and its Officers.    Section 213 of  
the Act, as amended by s 51 of the Labour Relations Amendment 
Act  No 42 of 1996 , defines the term “employee” as follows:
“ ‘Employee’ means:
(a) any   person,   excluding   an   independent   contractor,   who   works   for  
another person or for the State and who receives, or is entitled to receive, any  
remuneration; and
(b) any other person who in any manner assists in the  carrying   out  
or conducting the business of an employer”.
The term is similarly defined in the BCEA and EEA.  The definitions  
in the SDA and UIA are structured differently but carry  substantially 
the same meaning as those set out in the former Acts.
[12]     Commenting   on   the   nature   and   meaning   of   employment,  
Myburgh   JP   said   in   the   case   of   SA   Broadcasting   Corporation   v  
McKenzie  (1999) 20 ILJ 585 (LAC) at 591E­G:
“The legal relationship between the parties must be gathered primarily from  
a   construction     of   the   contract   which   they   concluded   (Smit   v   Workmen’s  
Compensation Commissioner at 64B; Liberty Life Association of Africa Ltd v  
Niselow   at   683D­E),   ‘although   the   parties’   own   perception   of   their  
relationship and the manner in which the contract is carried out in practice  
may,   in   areas   not   covered   by   the   strict   terms   of   the   contract,   assist   in  
determining   the   relationship’   (Borcherds   v   C   W   Pearce   &   J   Sheward   t/a  
Lubrite Distributors at 1277H­I).  In seeking to discover the true relationship  
between the parties, the court must have regard  to   the   realities   of   the  
relationship and not regard itself as bound by what they have chosen to call it  
(Golber v Durban City Council 1970 (3) SA 325 (N) at 331B­C).  As Brassey 
‘The   Nature   of   Employment’   at   921   points   out,   the   label   is   of   no

‘The   Nature   of   Employment’   at   921   points   out,   the   label   is   of   no  
assistance   if   it   was   chosen   to   disguise   the   real   relationship   between   the  
parties,   ‘but   when   they   are   bona   fide   it   surely   sheds   light   on   what   they

intended’.”
[13] In   addition   to   the   fact   that   the   applicant   does   not   conduct  
employment   contracts   with   its   Officers,   who   instead   sign   the  
undertaking   mentioned   hereinabove   which   expressly   excludes   an  
employment relationship,   it was further submitted that the nature of  
the relationship is clearly not one of employer and employee.   The  
following features thereof were highlighted:
• The relationship between the applicant and the Officers is spiritual and  
is governed by religious conscience and the Officers’ covenant with  
God; the Officer responds to a call of God to spiritual ministry and the  
applicant merely provides the sphere within which the Officers serve  
God;
• An Officer does not sell his services nor does the applicant buy such  
services; no salary nor allowance is guaranteed to the Officers who  
only   receive   a   living   allowance   to   enable   them   to   forgo   secular  
employment and carry out a Christian spiritual ministry through the  
applicant;
• An   Officer’s   leisure   pursuits   must   be   in   keeping   with   his   spiritual  
calling; 
• An Officer does not retire from his calling; devotes his entire life to  
God and the applicant and remains a minister of religion until death;
• Save   for   direction   in   respect   of   administrative   matters   there   is   no  
control over the manner in which an Officer fulfils his spiritual calling  
and ministry; he then chooses when and where to pray, the style of

preaching, his pastoral care and other aspects of the ministry.
[14] In the case of  The Church of the Province of Southern Africa  
Diocese   of   Cape   Town   v   CCMA   &   Others   (2001)   22   ILJ   2274 
(LC), Waglay J collected and analysed the relevant  authorities 
decided by South African courts and courts in other jurisdictions on  
the   nature   of   the   relationship   between   a   church   minister   and   his  
church. He concluded at 2285E:
“The common thread that runs through all of these decisions  is   that,   in   a  
church and clergy relationship the crucial question  is   whether,   at   the  
time the parties concluded the offer and acceptance, they intended to create a  
legally binding contractual relationship…”
The learned judge continued thus at 2287G: “ The duties and obligations  
together   with   the   other   factual   issues   that   are   applicable   between   parties  
inter se can only help to determine the nature of the contract once it has been  
established that there is a legally binding agreement between them ”.
See   also   Lewis   &   Another   v   Contract   Interiors   CC   (2001)   22  
ILJ 466 (LC) at 471F.
[15] In my view, it is clear in all the circumstances of this matter that  
the applicant does not enter into contracts of employment with  
its clergy. There is no such intention on the part of both the applicant  
and   the   Officers   concerned.     The   Officers   are   therefore   not  
“employees” of the applicant as envisaged by the labour legislation.  
The  applicant has made out a case for the grant of the declarator it  
seeks.

[16] The following order is accordingly made:
The   Officers   of   the   applicant   are   declared   not   to   be   employees   as  
defined in the Labour Relations Act, 66 of 1995; The Basic Conditions  
of Employment Act, 75 of 1997;   The Employment Equity Act, 5 of  
1998; The Unemployment Insurance Act, 30 of 1966; The Skills and  
Development Act, 97 of 1998; The Compensation for Occupational  
Injuries and Diseases Act, 103 of 1993, and   the said Acts are not  
applicable on such Officers.
__________________
MAYA, A.J.
For the Applicant: Mr H Gerber
Instructed by Van Staden & De Beer Inc.
Date of hearing: 20 August 2004
Date of judgment: 2 September 2004