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HH211-14 - ZIMBABWE ELECTRICITY TRANSMISSION AND DISTRIBUTION COMPANY vs RONALD MUTOMBODZI

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Labour Law-viz transfer of an employee re unilateral transfer of an employee.
Labour Law-viz employment contract-viz termination.
Labour Law-viz contract of employment re termination.
Labour Law-viz employment contract-viz unlawful retention of employment benefits.
Labour Law-viz contract of employment re unlawful retention of employment benefits.
Law of Property-viz vindicatory action re retention of company assets by a former employee iro claim of right.
Law of Property-viz rei vindicatio re claim of right iro retention of an employer's property by a former employee.
Procedural Law-viz jurisdiction re labour proceedings.
Procedural Law-viz civil appeal re labour proceedings iro the principle that the noting of an appeal suspends the operation of the decision appealed against.
Procedural Law-viz civil appeal re labour proceedings iro the rule that the noting of an appeal suspends the operation of the judgment appealed against.

Employment Contract re: Contractual and Terminal Benefits, Vested Rights of Ex-Employees & Retention of Company Property

The respondent was employed by the applicant as an engineer and he was a managerial employee. In April 2012, the applicant transferred the respondent. The respondent successfully took issue with the transfer at arbitration and the applicant was ordered not to unilaterally transfer him and others. In addition, on 10 October 2012, the High Court granted an order suspending the transfer pending finalisation of the labour process. 

Nevertheless, on 18 October 2012, the applicant transferred the respondent. 

On 29 November 2012, another arbitration award was granted, ordering the applicant to comply with the earlier award not to transfer the respondent unilaterally. On 4 February 2013, the applicant dismissed the respondent for refusal to obey a lawful instruction in relation to the transfer. The dismissal case went to arbitration. On 30 July 2013, arbitrator Shumba reinstated the claimant “without loss of salary and benefits from 5 September 2012 or payment of damages in lieu of reinstatement on terms to be agreed upon by both parties, failure of which either party can approach the arbitrator for quantification of such damages.”

It is common cause that the respondent was neither reinstated nor offered damages. It is common cause that the respondent approached the arbitrator for quantification of damages. It is also common cause that the applicant has appealed against both the reinstatement and the quantification in the Labour Court.

Prior to the granting of the arbitration award for reinstatement, the applicant had applied to the High Court for a rei vindicatio in respect of the motor vehicle which was issued to the respondent as a Network Manager, a Mazda BT50 Double Cab, Registration No. AAC–1901. The applicant's argument was that it terminated the respondent's employment on 11 December 2012 following disciplinary proceedings and that because of that termination the respondent should hand over the above motor vehicle regardless of the fact that the respondent was challenging the termination.

In response, the respondent raised preliminary issues about lack of authority by the deponent to the applicant's affidavit and citing a wrong name for the respondent. The respondent also said the High Court has no jurisdiction to deal with this matter since it is a labour dispute.

During the hearing, the applicant abandoned the other preliminary issues but persisted with the argument that the High Court has no jurisdiction to deal with the matter.

Jurisdiction re: Labour Proceedings


I have considered the submissions on jurisdiction and I have concluded that the application, being a rei vindicatio, the High Court has jurisdiction to deal with the matter on the basis of the Zimasco (Pvt) Ltd v Marikano SC181-10 matter.

Vindicatory Action or Rei Vindicatio re: Approach, Ownership Rights, Claim of Right, Estoppel and Lien

On the merits, comprehensive heads of argument were filed by the parties on the law on rei vindicatio

In Chetty v Naidoo 1974 (3) SA 13…, the court said;

“The owner, in instituting a rei vindicatio, need, therefore, do no more than allege and prove that he is the owner and that the defendant is holding the res: the onus being on the defendant to allege and establish any right to continue to hold against the owner.”

The position was confirmed in our jurisdiction in the case of Musanhi v Mt Darwin Rushinga Co-operative Union 1997 (1) ZLR 120 SC.

The respondent submitted that he has discharged the onus to establish “any right” to continue to hold against the owner. He referred to Chetty v Naidoo 1974 (3) SA 13…, where the court said;

“…, and it follows that no other person may withhold it from the owner unless he is vested with some impossible right against the owner e.g. a right of retention or contractual right.”

The applicant, in its founding affidavit, conceded that reinstatement will entitle the respondent to retain the motor vehicle. In the applicant's founding affidavit, Judith Tsamba, the applicant's Company Secretary, after noting that the respondent was challenging the termination of his contract of employment said, in paragrapg 6;

“I am informed that whatever views he may have regarding the legality of his dismissal and whatever challenge he has or may file with the courts against this dismissal will not entitle him to retain the vehicle until and if at all an order is made for re-employment.”

On 30 July 2013, an order reinstating the respondent was made by the arbitrator and in line with the above paragraph in the founding affidavit, the respondent actually expected litigation to cease.

The court views paragraph 6 of the founding affidavit as an acknowledgement by the applicant that the respondent, after reinstatement, has established a right of retention or contractual right. That acknowledgement is a correct analysis, from a legal point of view. The case of Standard Chartered Bank of Zimbabwe Ltd v Matsika 1997 (2) ZLR 389 referred to by the respondent is relevant. At page 392, the court said;

“The appellant was directed to reinstate the respondent without loss of pay and other benefits from the date of his suspension without pay. Implicit in the order is that the contract of employment had not been severed and that the contractual chains still bind the one to the other. Thus, the appellant…, was to put the respondent back into the position the respondent occupied and pay him as though the misconduct and other proceedings had not been brought against him.” 

While it is common cause that the applicant has neither reinstated the respondent or paid him, it is expecting too much for the applicant to expect the respondent to hand over the motor vehicle at this stage when he has been reinstated and is expecting more employment benefits or damages from the applicant. The motor vehicle is the only thing the respondent has in his possession to “retain” or “continue to hold” against the employer until its established employment benefits or damages have been paid out….,.

It is therefore the court's considered view that the respondent has successfully discharged the onus of alleging and establishing a right to the motor vehicle as a reinstated employee, or, alternatively, a right to “retain it” or hold onto it in lieu of damages, pending the finalisation of the employment dispute between the parties.

Appeal, Leave to Appeal, Leave to Execute Pending Appeal re: Suspension of Orders Pending Appeal iro Labour Proceedings

It is common cause that the applicant has appealed against both the reinstatement award and the quantification award. 

However, the applicant conceded, and rightly so, in paragraph 31 and 33 of its heads of arguments, that an appeal does not suspend the decision appealed against. 

That being the case, the respondent therefore stands reinstated.

NDEWERE J: The respondent was employed by the applicant as an engineer and he was a managerial employee.  In April, 2012, the applicant transferred the respondent.  The respondent successfully took issue with the transfer at arbitration and the applicant was ordered not to unilaterally transfer him and others.  In addition, on 10 October, 2012, the High Court granted an order suspending the transfer pending finalisation of the labour process.  Nevertheless, on 18 October, 2012, the applicant transferred the respondent.  On 29 November, 2012 another arbitration award was granted, ordering the applicant to comply with the earlier award not to transfer the respondent unilaterally.  On 4 February, 2013, the applicant dismissed the respondent for refusal to obey a lawful instruction in relation to the transfer.  The dismissal case went to arbitration.  On 30 July, 2013, arbitrator Shumba reinstated the claimant “without loss of salary and benefits from 5 September, 2012 or payment of damages in lieu of reinstatement on terms to be agreed upon by both parties, failure of which either party can approach the arbitrator for quantification of such damages.”

            It is common cause that the respondent was neither reinstated nor offered damages.  It is common cause that the respondent approached the arbitrator for quantification of damages.  It is also common cause that the applicant has appealed against both the reinstatement and the quantification in the Labour Court.

            Prior to the granting of the arbitration award for reinstatement, the applicant had applied to the High Court for arei vindicatio in respect of the motor vehicle which was issued to the respondent as a Network Manager, a Mazda BT 50 Double Cab, Registration No. AAC –1901.  The applicant's argument was that it terminated respondent's employment on 11 December, 2012 following disciplinary proceedings and that because of that termination the respondent should hand over the above motor vehicle regardless of the fact that the respondent was challenging the termination.

            In response, the respondent raised preliminary issues about lack of authority by the deponent to the applicant's affidavit and citing a wrong name for the respondent. The respondent also said the High Court has no jurisdiction to deal with this matter since it is a labour dispute.  During the hearing, the applicant abandoned the other preliminary issues but persisted with the argument that the High Court has no jurisdiction to deal with the matter.

            I have considered the submissions on jurisdiction and I have concluded that the application, being arei vindicatio, the High Court has jurisdiction to deal with the matter on the basis of the Zimasco (Pvt) Ltd v Marikano SC 181/10 matter.

            On the merits, comprehensive heads of argument were filed by the parties on the law on rei vindicatio.  In Chetty v Naidoo 1974 (3) SA 13, at p 20, the court said,

“The owner, in instituting a rei vindicatio, need, therefore, do no more than allege and prove that he is the owner and that the defendant is holding the res:the onus being on the defendant to allege and establish any right to continue to hold against the owner.” 

The position was confirmed in our jurisdiction in the case of Musanhi v Mt Darwin Rushinga Co-operative Union 1997 (1) ZLR 120 SC.

The respondent submitted that he has discharged the onus to establish “any right” to continue to hold against the owner.  He referred to Chetty v Naidoo supra, at p 13 where the court said “......and it follows that no other person may withhold it from the owner unless he is vested with some impossible right against the owner e.g. a right of retention or contractual right.”

The applicant in its founding affidavit conceded that reinstatement will entitle the respondent to retain the motor vehicle.  In the applicant's founding affidavit, Judith Tsamba, the applicant's Company Secretary, after noting that the respondent was challenging the termination of his contract of employment said in para 6,

“I am informed that whatever views he may have regarding the legality of his dismissal and whatever challenge he has or may file with the courts against this dismissal will not entitle him to retain the vehicle until and if at all an order is made for re-employment.” 

On 30 July, 2013, an order reinstating the respondent was made by the arbitrator and in line with the above paragraph in the founding affidavit, respondent actually expected litigation to cease.

The court views para 6 of the founding affidavit as an acknowledgement by the applicant that the respondent, after reinstatement, has established a right of retention or contractual right.

That acknowledgement is a correct analysis, from a legal point of view.

The case of Standard Chartered Bank of Zimbabwe Ltd v Matsika 1997 (2) ZLR 389 referred to by the respondent is relevant. At p 392, the court said,

“The appellant was directed to reinstate the respondent without loss of pay and other benefits from the date of his suspension without pay.  Implicit in the order is that the contract of employment had not been severed and that the contractual chains still bind the one to the other.  Thus, the appellant..... was to put the respondent back into the position the respondent occupied and pay him as though the misconduct and other proceedings had not been brought against him.” 

While it is common cause that applicant has neither reinstated the respondent or paid him, it is expecting too much for the applicant to expect respondent to hand over the motor vehicle at this stage when he has been reinstated and is expecting more employment benefits or damages from the applicant.  The motor vehicle is the only thing respondent has in his possession to “retain” or “continue to hold” against the employer until its established employment benefits or damages have been paid out.

It is common cause that the applicant has appealed against both the reinstatement award and the quantification award.  However, the applicant conceded, and rightly so, in para 31 and 33 of its heads of arguments, that an appeal does not suspend the decision appealed against.  That being the case, the respondent therefore stands reinstated.

It is therefore the court's considered view that the respondent has successfully discharged the onus of alleging and establishing a right to the motor vehicle as a reinstated employee or alternatively a right to “retain it” or hold on to it in lieu of damages, pending the finalisation of the employment dispute between the parties.  

Dube & Manikai, applicant's legal practitioners

Messrs Sinyoro & Partners,respondent's legal practitioners
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