In an interesting turn of events, the Labour Court accepted that it has jurisdiction to act as a Court of Law in a dispute between a labour broker and its client. In this particular case, Transman v SAPO, the client terminated the Employment Contract forcing the labour brokers to in turn have to try and comply with Section 189 of the Labour Relations Act (Retrenchment).

The labour brokers tried to get information from the client as to why the contract was terminated, which information appears to have not been forthcoming. The labour brokers in turn said it needed this information to properly consult with its employees. This dispute was referred to the Labour Court by way of a special application and the client raised the argument that the Labour Court was there for disputes between Employer and Employee and not involving them as the client. The Court took the view that in terms of its own powers, it may interfere in such a dispute as it did affect employees.


For more information on labour law advice or services. Please feel free to contact us at Cape Labour Consultants and we will gladly assist you. Cape Labour & Industrial Consultants is a Cape Town-based providing Labour Law (Industrial Relations) and advice to employers and employees across all market segments and industries since 1987.

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