Rédaction Africa Links 24 with Tania Broughton
Published on 2024-03-28 15:15:59
The Passenger Rail Agency of South Africa (Prasa) recently won an appeal against a previous Labour Court ruling that ordered the reinstatement of three executives, including whistleblower Martha Ngoye. The Labour Appeal Court determined that while Prasa had unlawfully terminated the contracts of Ngoye, as well as Nkosinathi Khena and Tiro Holele, the court should not have ordered their reinstatement with back pay.
The appeal court’s decision was based on the employees’ reliance on the Basic Conditions of Employment Act (BCEA) in the initial litigation, rather than the Labour Relations Act (LRA). As a result, the Labour Court ruling in favor of the executives was overturned in favor of Prasa. It is now believed that Ngoye and the others may seek redress from the Constitutional Court.
Ngoye, Khena, and Holele were dismissed in early 2021, with Prasa citing the expiration of their five-year contracts as the reason for termination. Prasa accused them of taking advantage of board instability to prolong their tenure unlawfully. The trio challenged their dismissal in the Labour Court, which ruled in their favor and ordered their reinstatement with back pay. However, Prasa appealed this decision, leading to the recent judgment by the Labour Appeal Court.
Judge President Basheer Waglay, along with two concurring judges, highlighted that the employees had sought specific performance under the BCEA in the lower court, which was not contested by Prasa. The court found that Prasa had terminated their contracts without proper cause, making the dismissals unlawful. However, since the employees did not rely on the LRA, they were only entitled to specific performance or damages, which were not proven.
Judge Waglay emphasized the difficulties in compelling parties to continue a personal employment contract and noted the potential conflicts reinstatement could cause in the workplace. The decision to terminate the executives also indicated that Prasa no longer required their services. Seeking specific performance due to financial prejudice was not sufficient grounds for granting the relief.
The judge criticized the Labour Court for granting reinstatement, calling it misconceived and stating that the application should have been dismissed. It has been widely reported that Ngoye played a key role as a whistleblower for Prasa, assisting in court victories and testifying at the State Capture Commission.
Overall, the recent ruling by the Labour Appeal Court in favor of Prasa highlights the complexities of employment law and the challenges of seeking specific performance in personal contracts at the upper management level. The case also underscores the importance of proper legal procedures and considerations in handling termination disputes within organizations.
Read the original article on Daily Maverick
