Velinov v University of KwaZulu-Natal and Others (LD740/04 , D740/04) [2005] ZALC 27; [2006] 6 BLLR 607 (LC); (2006) 27 ILJ 177 (LC) (26 October 2005)

67 Reportability

Brief Summary

Labour Law — Unfair labour practice — Review of arbitration award — Applicant challenging dismissal of unfair labour practice claim based on late referral — Court finding that the Commissioner erred in upholding points in limine regarding jurisdiction and the applicability of unfair labour practice provisions post-resignation — Award set aside and matter remitted for arbitration.

IN THE LABOUR COURT OF SOUTH AFRICA
(HELD AT DURBAN)
CASE NO:  D740/04
In the matter between:
YOURIY PETROV VELINOV Applicant
and
UNIVERSITY OF KWAZULU­NATAL First Respondent
AUBREY NGCOBO N.O. Second Respondent
COMMISSION FOR CONCILIATION, MEDIATION
AND ARBITRATION Third Respondent
J U D G M E N T
G.O. VAN NIEKERK AJ
[1] This application is for the review of an arbitration award made by the Second  
Respondent in terms of which he upheld two points  in limine  raised by the First  
Respondent in a dispute pertaining to an alleged unfair labour practice in terms  
of section 186(2)(a) of the Labour Relations Act, 1995 (LRA).  For the sake of  
clarity I will refer to the Applicant as Professor Velinov and the First Respondent  
as the University.

[2] Professor Velinov was previously employed as an associate professor in the  
Computer  Science  Department  of  the University  in  Pietermaritzburg.    In  July  
2003 the University advertised the vacant position of chair in computer science  
and   subsequently   it   also   advertised   the   position   of   professor   in   computer  
science.   Professor Velinov submitted an application for the first post that is,  
chair in computer science.   On 2 December 2003, he was interviewed for the  
position and on 6 December he was telephonically informed that his application  
had not been successful.  On 8   December 2003 Professor Velinov tendered his  
resignation in a letter stating  inter alia ,
“The   whole   process   of   handling   my   application   was   peculiar   from   the   very  
beginning but the appointment of a person with apparently lower qualification,  
from outside, with no knowledge of our department and its problems shows me  
that academic merits  (sic) are of no value to the leaders and representatives of  
the Faculty of Science.”
[3] The   University   accepted   the   tendered   resignation   but   Professor   Velinov  
attempted to retract it on 3 February 2004, without success.  On 26   March 2004  
Professor   Velinov   referred   a   dispute   to   the   Commission   for   Conciliation  
Mediation and Arbitration (CCMA) which he summarised as follows:
“Unfair selection proces  (sic) of application for a post at “Full Professor” level as  
a result of which a considerably weaker person was appointed.”
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[4] On 29 April 2004 a certificate of non­resolution of the dispute was issued in  
terms of section 191(5) and on 30 June 2004 Professor Velinov’s employment  
with the University came to an end with the effluxion of the notice period he was  
obliged to give the University when he resigned.
[5] When the dispute came before the Commissioner in the CCMA, the University  
raised the following legal points  in limine .  Firstly, that the Commissioner did not  
have jurisdiction to entertain the dispute on the ground that the referral of the  
dispute had been made outside of the 90 day period prescribed for the referral  
of unfair labour practices in terms of section 191(1)(b).  Secondly, in the light of  
Professor Velinov’s resignation, it was not competent for him to seek relief in  
respect of an alleged unfair labour practice.  Thirdly, there was no merit in the  
referral as no application had been made for the post in respect of which he  
claimed he had suffered unfair treatment.
[6] The Commissioner upheld the first two points in favour of the University and in  
regard   to   the   third   point,   made   no   finding   as   a   dispute   of   fact   exists   as   to  
whether   it   was   necessary   for   application   to   be   made   for   both   positions   or  
whether it would suffice for an application to be made in respect of the position  
of Chair only in which case the application would be considered to be in respect  
of the other position as well.
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[7] In the application before me, Mr Chadwick, who appeared for the University,  
argued that the Commissioner was correct in his findings on the points  in limine . 
I will deal with each of the two points whereafter I will consider whether the  
award is reviewable. 
[8] As   far   as   the   jurisdictional   point   is   concerned,   it   is   now   settled   law   that   the  
Commission acquires jurisdiction to arbitrate a dispute after a certificate of non­
resolution  has  been  issued  (see   Fidelity   Guard   Holdings  (Pty)   Ltd  v  Epstein  
N.O. & Others  [2000] 12 BLLR 1389 (LAC)).  The Court found in this case that  
even if the dispute is referred late, the Commission retains jurisdiction, provided  
a certificate of “non­resolution” has been issued.  It went on to find that the only  
way in which a defective certificate can be challenged is by way of review.
[9] Mr   Chadwick   submitted   on   behalf   of   the   University   that   the   90   day   period  
referred   to   in   section   191(1)(b)   expired   on   8   March   2004   and   that   in   the  
absence of condonation for the late referral of the dispute, the Commissioner  
was correct in holding that he did not have jurisdiction to resolve the dispute.  
Mr   Chadwick,   however,   accepted   that   the   Commissioner   had   issued   a  
certificate of non­resolution in terms of section 191(5) but contended that the  
amendment   of   section   191(1)(b)   introduced   an   additional   jurisdictional   pre­
requisite  because unlike  section  191  before  its  amendment,   a  referral   in  the  
case of a dismissal  must be made within 30 days and in the case of an unfair  
labour practice,   must  be made within 90 days.   In order to better demonstrate  
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the differences between section 191 prior to its amendment and section 191  
after its amendment, I quote the relevant sections here below.
[10] Prior to its amendment in 2002, section 191(1) read as follows:­
“(1) If   there   is   a   dispute   about   the   fairness   of   a   dismissal,   the  
dismissed employee may refer the dispute in writing within thirty days of  
the date of dismissal to –
(a) a council, if the parties to the dispute fall within the  
registered scope of that council;  or
(b) the Commission, if no council has jurisdiction.”
[11] Section 191(1) now reads as follows:­
“1(a) If there is a dispute about the fairness of a dismissal, or a dispute  
about an unfair labour practice, the dismissed employee or the employee  
alleging the unfair labour practice may refer the dispute in writing to –
i) a   council,   if   the   parties   to   the   dispute   fall   within   the   registered  
scope of that council;  or
ii) the Commission if no council has jurisdiction.
b) A referral in terms of paragraph (a)  must be made within –
i) 30 days of the date of a dismissal or, if it is a later date, within 30  
days of the employer making a final decision to dismiss or uphold  
the dismissal;
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(ii) 90   days   of   the   date   of   the   act   or   omission   which  
allegedly constitutes the unfair labour  practice  or,  if it is  a later  
date, within 90 days of the date on which the employee became  
aware of the act or occurrence.”  (my underlining)
 [12] I should point out that neither sub­section (2) concerning condonation nor sub­
section (5) concerning the certification of a dispute was amended, save by the  
introduction   in   sub­section   (5)   of   sub­section   (a)(iv)   which   provides   for   the  
arbitration   of   a   dispute   concerning   an   unfair   labour   practice.     The   only  
substantive amendment to section 191(1) concerns the referral of unfair labour  
practice disputes.   The basic structure of section 191(1) therefore remains the  
same.
[13] Mr Chadwick submitted that because the amended section 191(1) provides that  
a   dispute   must   be   referred   within   the   time   limits   provided,   this   places   an  
obligation  upon  a Commissioner  arbitrating  a dispute  to  enquire whether  the  
dispute   was   timeously   referred   and   if   not,   whether   the   late   referral   may   be  
condoned.     In   support   of   this   contention   he   referred   me   to   Rule   22   for   the  
Conduct of Proceedings before the CCMA published on 10 October 2003.  This  
rule reads as follows:­
“If during the arbitration proceedings it appears that a jurisdictional issue has  
not   been   determined,   the   commissioner   must   require   the   referring   party   to  
prove that the Commission has jurisdiction to arbitrate the dispute.”
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[14] I do not agree that the  Fidelity Guards Holdings  case is distinguishable because  
of the amendment or that the amendment read with Rule 22 introduces a new  
jurisdictional pre­requisite.   I consider that the principle remains the same and  
that   as   long   as   the   certificate   of   outcome   has   not   been   set   aside,   the  
Commission   retains   jurisdiction.     It   is   the   setting   aside   of   the   certificate   of  
outcome that would render the Commission without jurisdiction to arbitrate (see  
paragraph 12 of the   Fidelity Guardings Holdings   decision ( supra) at 1393 H –  
1394 A).   In my view, Rule 22 does not assist the University as it has limited  
application   in   circumstances   such   as   those   that   arose   in   SA   Broadcasting  
Corporation   v   Commission   for   Conciliation,   Mediation   &   Arbitration   &   Others  
(2003)   24   ILJ   211   (LC).     In   any   event,   the   Rules   of   the   CCMA   constitute  
subordinate legislation which cannot be used to interpret the provisions of the  
LRA (see   Chemical Workers’ Industrial Union v Price’s Candles SA (Pty) Ltd  
(1994) 15 ILJ 852 (IC) at 861 B – C).
[15] I   now   turn   to   consider   the   second   point   in   limine  which   is   to   the   effect   that  
because  Professor  Velinov  resigned,  he  could not  avail   himself  of  the  unfair  
labour practice provisions contained in section 185.   In this regard it must be  
borne   in   mind   that   after   Professor   Velinov’s   resignation   was   accepted,   he  
referred   a   dispute   in   terms   of   section   191   to   the   Commission   which   he  
characterised  as  an  unfair  labour  practice.    This  dispute  concerned  his non­
appointment   to   the   vacant   positions,   the   very   reason   he   resigned   from   his  
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employment.     It   was   submitted   on   behalf   of   the   University   that   although  
Professor Velinov’s resignation only became effective at the end of June 2004,  
he could nonetheless not avail himself of the provisions prohibiting unfair labour  
practices.     It   was   submitted   that   these   provisions   are   only   intended   for   the  
benefit   of   employees   who   are   engaged   in   on­going   relationships   with  
employers.   In support of this contention I was referred to   Sithole v Nogwaza  
N.O. & Others  [1999] 12 BLLR 1348 (LC), specifically at paragraphs 44 and 45.
[16] I   do   not   accept   that   an   employee   whose   employment   has   been   terminated  
either  by  resignation  or   otherwise,   but   who   continues   to  work   out   his   or   her  
notice period, does not enjoy the protection of the provisions of the LRA and  
particularly the unfair labour practice provisions contained in Chapter VIII.  This  
would not only be contrary to section 186(2) which, in defining an  “unfair labour  
practice”, does not distinguish between different categories of employees but it  
is also contrary to the definition of  “employee” in section 213.  It is also contrary  
to the principle that despite termination of employment, employees have rights  
in   the   wider   “ongoing   employment   relationship”   (see   National   Automobile   &  
Allied Workers’ Union v Borg­Warner SA (Pty) Ltd  1994(3) SA 15 (A) at 25 E –  
I)
[17] Sithole’s case does not support the University.   While it is true that the Court  
found that the Commission lacked jurisdiction to entertain disputes concerning  
alleged   unfair   conduct   by   an   employer   committed   after   termination   of   the  
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employment   relationship,   in   this   case   the   employment   relationship   did   not  
terminate until the end of the notice period on 30 June 2004.  Professor Velinov  
remained   an   employee   until   that   date   and   was   accordingly   entitled   to   the  
protection against unfair labour practices contained in Chapter VIII of the LRA.
[18] Finally,   the   approach   that   I   take   to   the   Commissioner’s   ruling   on   the  
abovementioned points  in limine  is that his reasoning process is not only wrong  
but   is   so   flawed   to   the   extent   that   the   conclusion   may   be   drawn   that   he  
committed a gross irregularity.  See in this regard  Goldfields Investment Limited  
& Another v City Council of Johannesburg & Another  1938 TPD 551 at 560 and  
Toyota SA Motors (Pty) Ltd v Radebe & Others  (2000) 21 ILJ 340 (LAC) at 351  
F – 352 B.
[19] I make the following order:­
[a] that the arbitration award delivered by the Second Respondent on  
20  June 2004 be reviewed and set aside;
[b] the matter is remitted to the Commission for arbitration;
[c] the First Respondent is ordered to pay the Applicant’s costs.
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_______________________________
G O VAN NIEKERK AJ
Appearances: For the Applicant ­ D P Crampton
Instructed By ­ Tomlinson Mnguni James
For the Respondent ­ Mr A I J Chadwick from
Shepstone & Wylie
Date of Judgment:            26 October 2005
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