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HB103-14 - MANDLA KHANYE & OTHERS and SHAME MUTUNGURA and LIVER MDLONGWA vs INGWEBU BREWERIES

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Labour Law-viz labour arbitration re registration of arbitral award iro section 98(14) of the Labour Act [Chapter 28:01].
Procedural Law-viz jurisdiction re labour proceedings iro section 89(6) of the Labour Act [Chapter 28:01].
Labour Law-viz damages in lieu of reinstatement re quantification.

Discipline re: Damages in Lieu of Reinstatement and Reinstatement Orders iro Approach

The applicants in this matter sought to register an arbitral award relating to them in terms of section 98(14) of the Labour Act [Chapter 28:06].

The applicants had been awarded two different awards on different dates. The first award, dated 2 June 2006, provided as follows:-

Award

(1) The employees are reinstated without any loss of pay and benefits from the date of dismissal.

(2) The parties to negotiate damages within 21 days as an alternative to reinstatement if continued employment is not possible.

(3) Parties to refer the matter to the arbitrator if negotiation of damages proves elusive for quantification of damages.”

The second award, dated 27 September 2010, reads as follows:-

Award

The arbitrator will award that the employees should be paid their back pay without any loss of pay and benefits from February 2009, the time forex started, to the 3rd September, the date of the hearing for quantification of damages. Furthermore, the employer must pay 12 months damages in the lieu (sic) of reinstatement. The issue of prescription does not arise as the judgment made by the arbitrator is still in force and there was no interim order staying the award.”

The applicants were not satisfied with what they were awarded by the arbitrator. Their belief was that they were entitled to much more than was awarded by the arbitrator.

Further, the quantification done by the arbitrator lacked details. The arbitrator should have done the calculation and arrived at a specified amount which he would then pronounce. The award, as it stands, is incomplete and is not registerable. More must be done either before an arbitrator or the Labour Court for proper quantification of what was awarded by the arbitrator prior to the award being registered as an order of this court in terms of section 98(14) of the Labour Act [Chapter 28:01].

The applicants sought to move that this court should take it upon itself to deal, at first instance, with what the arbitrator had not done. 

This court cannot do what is specifically prohibited by law. The Labour Act outlaws that in section 89(6) which provides that:

“(6) No court, other than the Labour Court, shall have jurisdiction in the first instance to hear and determine any application, appeal or matter referred to in subsection (1).”

In the result, the application is hereby dismissed with costs.

KAMOCHA J:   The applicants in this matter sought to register an arbitral award relating to them in terms of section 98 (14) of the Labour Act [Chapter 28:06].

            The applicants had been awarded two different awards on different dates.  The first award dated 2 June, 2006 provided as follows:-

            “Award

(1)   The employees are reinstated without any loss of pay and benefits from the date of dismissal.

(2)   The parties to negotiate damages within 21 days as an alternative to reinstatement if continued employment is not possible.

(3)   Parties to refer the matter to the arbitrator if negotiation of damages proves elusive for quantification of damages.”

The second award dated 27 September 2010 reads as follows:-

“Award

The arbitrator will award that the employees should be paid their back pay without any loss of pay and benefits from February 2009 the time forex started to the 3rd September the date of the hearing for quantification of damages.  Furthermore the employer must pay 12 months damages in the lieu (sic) of reinstatement.  The issue of prescription does not arise as the judgment made by the arbitrator is still in force and there was no interim order staying the award.”

            The applicants were not satisfied with what they were awarded by the arbitrator.  Their belief was that they were entitled to much more than was awarded by the arbitrator.

            Further the quantification done by the arbitrator lacked details. The arbitrator should have done the calculation and arrived at a specified amount which he would then pronounce.  The award as it stands, is incomplete and is not registerable.  More must be done either before an arbitrator or the Labour Court for proper quantification of what was awarded by the arbitrator prior to the award being registered as an order of this court in terms of section 98 (14) of the Labour Court.

            The applicants sought to move that this court should take it upon itself to deal, at first instance, with what the arbitrator had not done.  This court cannot do what is specifically prohibited by law.  The Labour Act out laws that in section 89 (6) which provides that:

“(6)      No court, other than the Labour Court, shall have jurisdiction in the first instance to hear and determine any application, appeal or matter referred to in subsection (1).”

            In the result the application is hereby dismissed with costs.

  

Calderwood, Bryce-Hendrie & Partners, respondent's legal practitioners
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