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HH152-14 - RESERVE BANK OF ZIMBABWE vs PRIVILEDGE MATURURE

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Labour Law-viz contract of employment re retention of company property.
Labour Law-viz employment contract re retention of employment benefits.
Law of Property-viz vindicatory action re claim of right.
Law of Property-viz rei vindicatio re claim of right.
Labour Law-viz retrenchments re section 12 of the Labour Act [Chapter 28:01].
Labour Law-viz severance agreements re section 13 of the Labour Act [Chapter 28:01].
Procedural Law-viz pleadings re abandoned pleadings.
Procedural Law-viz jurisdiction re labour proceedings iro section 89 of the Labour Act [Chapter 28:01].
Procedural Law-viz jurisdiction re cause of action jurisdiction.
Procedural Law-viz pleadings re counterclaim.
Procedural Law-viz pleadings re counter-claim.
Procedural Law-viz pleadings re counter application.
Procedural Law-viz pleadings re claim in reconvention.
Labour Law-viz unfair labour practices re section 8 of the Labour Act [Chapter 28:01].
Procedural Law-viz costs re interim proceedings.
Procedural Law-viz costs re interlocutory proceedings.

Jurisdiction re: Monetary, Cause of Action and Domestic Territorial Jurisdiction

The defendant was employed by the plaintiff as a driver attached to the Advisor to the Governor. He was issued with a Toyota Vigo motor vehicle registration number ABD7870 belonging to the employer for use in the discharge of his duties. He was retrenched from employment in January 2011 in terms of an approved retrenchment package which he signed in terms of which he is entitled to be paid a net sum of $19,312=80.

The plaintiff has sued the defendant seeking an order directing him to return the Toyota Vigo motor vehicle he is holding on to and damages for unlawful use of the said vehicle.

He initially took a point in limine that the dispute involving the motor vehicle is a labour one in which this court has no jurisdiction. Counsel for the defendant abandoned that point in limine, correctly in my view, on the basis that it was not well taken given that the plaintiff's cause of action is the actio rei vindicatio, a purely civil remedy in which this court's jurisdiction has not been ousted by section 89(6) of the Labour Act [Chapter 28:01].

The defendant has counter claimed seeking payment of $19,312=80 being unpaid retrenchment package and delivery of the registration book of the motor vehicle he claims is part of his retrenchment package.

The plaintiff objected to the defendant's counter-claim on the basis that it is, in essence, a labour dispute which should be determined by the Labour Court enjoying exclusive jurisdiction by virtue of the ouster provision contained in section 89(6) of the Labour Act. Counsel for the plaintiff submitted that as the defendant's claim is for payment of a retrenchment package, which is provided for in section 13(1)(b) and section 13(2) of the Labour Act [Chapter 28:01], this court's jurisdiction has been ousted by section 89(6). It is the Labour Court which enjoys jurisdiction exclusively.

Counsel for the defendant submitted that this court should exercise jurisdiction because in the counterclaim the defendant is seeking to enforce a civil debt. The fact that the debt arose out of an employment relationship is irrelevant. He maintained that the Labour Court has no jurisdiction to hear and determine civil disputes, the disposition of which does not involve the application of Employment Law expressly provided for by statute. It was strongly argued, on behalf of the defendant, that the right of an individual to approach this court seeking relief other than that specifically set out in the Labour Act remains as section 89(6) does not take away the right for civil relief premised on purely Civil Law principles.

Section 89(6) of the Labour Act [Chapter 28:01] provides;

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).”

Section 89(1) of the Labour Act [Chapter 28:01] states that:

The Labour Court shall exercise the following functions:

(a) Hearing and determining applications and appeals in terms of this Act; and

(b) Hearing and determining matters referred to it by the Minister in terms of this Act; and

(c) Referring a dispute to a Labour Officer, designated agent or a person appointed by the Labour Court to conciliate the dispute if the Labour Court considers it expedient to do so;

(d) Appointing an arbitrator from the panel in subs (6) of section ninety-eight to hear and determine an application;

(d1) Exercise the same powers of review as would be exercisable by the High Court in respect of labour matters;

(e) Doing such other things as may be assigned to it in terms of this Act or any other enactment.”

The procedure for retrenchment of employees is provided for in section 12C of the Labour Act. Section 13 provides:

Wages and benefits upon termination of employment

(1) Subject to this Act or any regulations made in terms of this Act, where any person -

(a) Is dismissed from employment or his employment is otherwise terminated; or

(b) Resigns from his employment; or

(c) Is incapacitated from performing his work; or

(d) Dies;

he or his estate, as the case may be, shall be entitled to wages and benefits due to him up to the time of such dismissal, termination, resignation, incapacity or death, as the case may be, including benefits in respect of any outstanding vacation and notice period, medical aid, social security and any pension and the employer concerned shall pay such entitlements to such person or his estate, as the case may be, as soon as reasonably practicable after such event, and failure to do so shall constitute an unfair labour practice.

(1a) Wages and benefits payable to any person or to his or her estate in terms of this section shall not form part of or be construed as a retrenchment package which an employee is entitled to where his or her employment has been terminated as a result of retrenchment in terms of section 12C.

(2) Any employer who, without the Minister's permission, withholds or unreasonably delays the payment of any wages or benefits owed in terms of subsection (1) shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or both such imprisonment.”

In his supplementary heads of argument, counsel for the plaintiff conceded that section 13 of the Labour Act specifically excludes retrenchment packages which is included as an unfair labour practice by virtue of the all-embracing section 8(e)(iv) of the Labour Act, which provides that an employer commits an unfair labour practice if he fails to comply with a determination or direction which is binding upon him in terms of the Labour Act.

It is clear that a retrenchment package is provided for in the Labour Act. It is an entitlement of an employee whose employment is terminated in terms of section 12C of the Labour Act. Where an employer does not pay a retrenchment package or delays making payment, an employee has a remedy - including criminal sanction. Indeed, failure to pay constitutes an unfair labour practice. There are remedies available for unfair labour practices.

I find myself having to repeat what was stated in Matongo v Midlands State University HH174-13…, that:

This court has, in a number of cases, interpreted that ouster provision to mean that the Labour Court has jurisdiction in all matters where the cause of action and remedy for that are provided for in the Act; Medical Investments Ltd v Pedzisayi 2010 (1) ZLR 111 (H) 114 C; DHL International (Pvt) Ltd v Madzikanda 2010 (1) ZLR 201 (H) 204 A; Tuso v City of Harare 2004 (1) ZLR 1 (H); Moyo v Gwindingwi N.O. & Anor HB168-11 at pp 5-6 (now reported in 2011 (2) ZLR 368); Jambwa v GMB HH124-13 at p4;

I am in agreement with the postulation of MAKARAU JP (as she then was) in Medical Investment Ltd v Pedzisayi (supra) at 114 C that:

'In interpreting these two sections of the Act (i.e. section 89(1) and section 89(6)) this court has, in the authorities I have cited above, held that the Labour Court has exclusive jurisdiction in all applications and matters that are not only defined but are determinable in terms of the Act. In other words, the Labour Court has jurisdiction in all matters where the cause of action and the remedy for that cause of action are all provided for in this Act.'

I have cited the provisions of section 13 of the Act which entitle an employee to wages and benefits upon termination of the employment contract. In the event of a breach of those provisions the employee has remedies, including criminal prosecution, against the employer.”

In Chiwundo v Zimbabwe National Family Planning Council HH212-13…, I made the point:

To the extent that the applicant was entitled to appeal all the way to the Labour Court, it means that the substance of this application is, in essence, a labour dispute disguised as an application for a declarator. Section 89(6) of the Labour Act [Cap 28:01] has ousted the jurisdiction of all other courts, in the first instance, to hear and determine any application, appeal or matter falling under the jurisdiction of the Labour Court. The present dispute clearly falls under the ouster provisions as it should be determined by the Labour Court.”

See also William Bain & Company Holdings (Pvt) Ltd v Nyamukunda HH309-13.

In my view, the defendant's cause of action, being the non-payment of a retrenchment package, is found in the Labour Act. His remedy is also located in that Act. For that reason, the jurisdiction of this court has been ousted by section 89(6) of the Labour Act. It matters not that the package was agreed between the parties. In fact, it was approved by the relevant authorities, namely, the Works Council and the Minister of Public Service, Labour and Social Welfare. This court will still not exercise jurisdiction.

1. The plaintiff's point in limine is hereby upheld.

2. Jurisdiction in respect of the defendant's counter claim is declined.

3. The matter shall proceed to trial in respect of the plaintiff's claim.

4. The issue of costs is reserved until the end of trial.

Employment Contract re: Termination iro Retrenchment and Severance Agreements

The procedure for retrenchment of employees is provided for in section 12C of the Labour Act. Section 13 provides:

Wages and benefits upon termination of employment

(1) Subject to this Act or any regulations made in terms of this Act, where any person -

(a) Is dismissed from employment or his employment is otherwise terminated; or

(b) Resigns from his employment; or

(c) Is incapacitated from performing his work; or

(d) Dies;

he or his estate, as the case may be, shall be entitled to wages and benefits due to him up to the time of such dismissal, termination, resignation, incapacity or death, as the case may be, including benefits in respect of any outstanding vacation and notice period, medical aid, social security and any pension and the employer concerned shall pay such entitlements to such person or his estate, as the case may be, as soon as reasonably practicable after such event, and failure to do so shall constitute an unfair labour practice.

(1a) Wages and benefits payable to any person or to his or her estate in terms of this section shall not form part of or be construed as a retrenchment package which an employee is entitled to where his or her employment has been terminated as a result of retrenchment in terms of section 12C.

(2) Any employer who, without the Minister's permission, withholds or unreasonably delays the payment of any wages or benefits owed in terms of subsection (1) shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or both such imprisonment.”...,.

Section 8(e)(iv) of the Labour Act,.., provides that an employer commits an unfair labour practice if he fails to comply with a determination or direction which is binding upon him in terms of the Labour Act.

It is clear that a retrenchment package is provided for in the Labour Act. It is an entitlement of an employee whose employment is terminated in terms of section 12C of the Labour Act. Where an employer does not pay a retrenchment package or delays making payment, an employee has a remedy - including criminal sanction. Indeed, failure to pay constitutes an unfair labour practice. There are remedies available for unfair labour practices.

Unfair Labour Practices and the Constitutional Right to Fair Labour Practices re: Approach

Section 8(e)(iv) of the Labour Act [Chapter 28:01]..., provides that an employer commits an unfair labour practice if he fails to comply with a determination or direction which is binding upon him in terms of the Labour Act.

Jurisdiction re: Labour Proceedings

The defendant was employed by the plaintiff as a driver attached to the Advisor to the Governor. He was issued with a Toyota Vigo motor vehicle registration number ABD7870 belonging to the employer for use in the discharge of his duties. He was retrenched from employment in January 2011 in terms of an approved retrenchment package which he signed in terms of which he is entitled to be paid a net sum of $19,312=80.

The plaintiff has sued the defendant seeking an order directing him to return the Toyota Vigo motor vehicle he is holding on to and damages for unlawful use of the said vehicle.

He initially took a point in limine that the dispute involving the motor vehicle is a labour one in which this court has no jurisdiction. Counsel for the defendant abandoned that point in limine, correctly in my view, on the basis that it was not well taken given that the plaintiff's cause of action is the actio rei vindicatio, a purely civil remedy in which this court's jurisdiction has not been ousted by section 89(6) of the Labour Act [Chapter 28:01].

The defendant has counter claimed seeking payment of $19,312=80 being unpaid retrenchment package and delivery of the registration book of the motor vehicle he claims is part of his retrenchment package.

The plaintiff objected to the defendant's counter-claim on the basis that it is, in essence, a labour dispute which should be determined by the Labour Court enjoying exclusive jurisdiction by virtue of the ouster provision contained in section 89(6) of the Labour Act. Counsel for the plaintiff submitted that as the defendant's claim is for payment of a retrenchment package, which is provided for in section 13(1)(b) and section 13(2) of the Labour Act [Chapter 28:01], this court's jurisdiction has been ousted by section 89(6). It is the Labour Court which enjoys jurisdiction exclusively.

Counsel for the defendant submitted that this court should exercise jurisdiction because in the counterclaim the defendant is seeking to enforce a civil debt. The fact that the debt arose out of an employment relationship is irrelevant. He maintained that the Labour Court has no jurisdiction to hear and determine civil disputes, the disposition of which does not involve the application of Employment Law expressly provided for by statute. It was strongly argued, on behalf of the defendant, that the right of an individual to approach this court seeking relief other than that specifically set out in the Labour Act remains as section 89(6) does not take away the right for civil relief premised on purely Civil Law principles.

Section 89(6) of the Labour Act [Chapter 28:01] provides;

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).”

Section 89(1) of the Labour Act [Chapter 28:01] states that:

The Labour Court shall exercise the following functions:

(a) Hearing and determining applications and appeals in terms of this Act; and

(b) Hearing and determining matters referred to it by the Minister in terms of this Act; and

(c) Referring a dispute to a Labour Officer, designated agent or a person appointed by the Labour Court to conciliate the dispute if the Labour Court considers it expedient to do so;

(d) Appointing an arbitrator from the panel in subs (6) of section ninety-eight to hear and determine an application;

(d1) Exercise the same powers of review as would be exercisable by the High Court in respect of labour matters;

(e) Doing such other things as may be assigned to it in terms of this Act or any other enactment.”

The procedure for retrenchment of employees is provided for in section 12C of the Labour Act. Section 13 provides:

Wages and benefits upon termination of employment

(1) Subject to this Act or any regulations made in terms of this Act, where any person -

(a) Is dismissed from employment or his employment is otherwise terminated; or

(b) Resigns from his employment; or

(c) Is incapacitated from performing his work; or

(d) Dies;

he or his estate, as the case may be, shall be entitled to wages and benefits due to him up to the time of such dismissal, termination, resignation, incapacity or death, as the case may be, including benefits in respect of any outstanding vacation and notice period, medical aid, social security and any pension and the employer concerned shall pay such entitlements to such person or his estate, as the case may be, as soon as reasonably practicable after such event, and failure to do so shall constitute an unfair labour practice.

(1a) Wages and benefits payable to any person or to his or her estate in terms of this section shall not form part of or be construed as a retrenchment package which an employee is entitled to where his or her employment has been terminated as a result of retrenchment in terms of section 12C.

(2) Any employer who, without the Minister's permission, withholds or unreasonably delays the payment of any wages or benefits owed in terms of subsection (1) shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or both such imprisonment.”

In his supplementary heads of argument, counsel for the plaintiff conceded that section 13 of the Labour Act specifically excludes retrenchment packages which is included as an unfair labour practice by virtue of the all-embracing section 8(e)(iv) of the Labour Act, which provides that an employer commits an unfair labour practice if he fails to comply with a determination or direction which is binding upon him in terms of the Labour Act.

It is clear that a retrenchment package is provided for in the Labour Act. It is an entitlement of an employee whose employment is terminated in terms of section 12C of the Labour Act. Where an employer does not pay a retrenchment package or delays making payment, an employee has a remedy - including criminal sanction. Indeed, failure to pay constitutes an unfair labour practice. There are remedies available for unfair labour practices.

I find myself having to repeat what was stated in Matongo v Midlands State University HH174-13…, that:

This court has, in a number of cases, interpreted that ouster provision to mean that the Labour Court has jurisdiction in all matters where the cause of action and remedy for that are provided for in the Act; Medical Investments Ltd v Pedzisayi 2010 (1) ZLR 111 (H) 114 C; DHL International (Pvt) Ltd v Madzikanda 2010 (1) ZLR 201 (H) 204 A; Tuso v City of Harare 2004 (1) ZLR 1 (H); Moyo v Gwindingwi N.O. & Anor HB168-11 at pp 5-6 (now reported in 2011 (2) ZLR 368); Jambwa v GMB HH124-13 at p4;

I am in agreement with the postulation of MAKARAU JP (as she then was) in Medical Investment Ltd v Pedzisayi (supra) at 114 C that:

'In interpreting these two sections of the Act (i.e. section 89(1) and section 89(6)) this court has, in the authorities I have cited above, held that the Labour Court has exclusive jurisdiction in all applications and matters that are not only defined but are determinable in terms of the Act. In other words, the Labour Court has jurisdiction in all matters where the cause of action and the remedy for that cause of action are all provided for in this Act.'

I have cited the provisions of section 13 of the Act which entitle an employee to wages and benefits upon termination of the employment contract. In the event of a breach of those provisions the employee has remedies, including criminal prosecution, against the employer.”

In Chiwundo v Zimbabwe National Family Planning Council HH212-13…, I made the point:

To the extent that the applicant was entitled to appeal all the way to the Labour Court, it means that the substance of this application is, in essence, a labour dispute disguised as an application for a declarator. Section 89(6) of the Labour Act [Cap 28:01] has ousted the jurisdiction of all other courts, in the first instance, to hear and determine any application, appeal or matter falling under the jurisdiction of the Labour Court. The present dispute clearly falls under the ouster provisions as it should be determined by the Labour Court.”

See also William Bain & Company Holdings (Pvt) Ltd v Nyamukunda HH309-13.

In my view, the defendant's cause of action, being the non-payment of a retrenchment package, is found in the Labour Act. His remedy is also located in that Act. For that reason, the jurisdiction of this court has been ousted by section 89(6) of the Labour Act. It matters not that the package was agreed between the parties. In fact, it was approved by the relevant authorities, namely, the Works Council and the Minister of Public Service, Labour and Social Welfare. This court will still not exercise jurisdiction.

1. The plaintiff's point in limine is hereby upheld.

2. Jurisdiction in respect of the defendant's counter claim is declined.

3. The matter shall proceed to trial in respect of the plaintiff's claim.

4. The issue of costs is reserved until the end of trial.

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

The defendant was employed by the plaintiff as a driver attached to the Advisor to the Governor. He was issued with a Toyota Vigo motor vehicle registration number ABD7870 belonging to the employer for use in the discharge of his duties. He was retrenched from employment in January 2011 in terms of an approved retrenchment package which he signed in terms of which he is entitled to be paid a net sum of $19,312=80.

The plaintiff has sued the defendant seeking an order directing him to return the Toyota Vigo motor vehicle he is holding on to and damages for unlawful use of the said vehicle.

He initially took a point in limine that the dispute involving the motor vehicle is a labour one in which this court has no jurisdiction. Counsel for the defendant abandoned that point in limine, correctly in my view, on the basis that it was not well taken given that the plaintiff's cause of action is the actio rei vindicatio, a purely civil remedy in which this court's jurisdiction has not been ousted by section 89(6) of the Labour Act [Chapter 28:01].

The defendant has counter claimed seeking payment of $19,312=80 being unpaid retrenchment package and delivery of the registration book of the motor vehicle he claims is part of his retrenchment package.

The plaintiff objected to the defendant's counter-claim on the basis that it is, in essence, a labour dispute which should be determined by the Labour Court enjoying exclusive jurisdiction by virtue of the ouster provision contained in section 89(6) of the Labour Act. Counsel for the plaintiff submitted that as the defendant's claim is for payment of a retrenchment package, which is provided for in section 13(1)(b) and section 13(2) of the Labour Act [Chapter 28:01], this court's jurisdiction has been ousted by section 89(6). It is the Labour Court which enjoys jurisdiction exclusively.

Counsel for the defendant submitted that this court should exercise jurisdiction because in the counterclaim the defendant is seeking to enforce a civil debt. The fact that the debt arose out of an employment relationship is irrelevant. He maintained that the Labour Court has no jurisdiction to hear and determine civil disputes, the disposition of which does not involve the application of Employment Law expressly provided for by statute. It was strongly argued, on behalf of the defendant, that the right of an individual to approach this court seeking relief other than that specifically set out in the Labour Act remains as section 89(6) does not take away the right for civil relief premised on purely Civil Law principles.

Section 89(6) of the Labour Act [Chapter 28:01] provides;

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).”

Section 89(1) of the Labour Act [Chapter 28:01] states that:

The Labour Court shall exercise the following functions:

(a) Hearing and determining applications and appeals in terms of this Act; and

(b) Hearing and determining matters referred to it by the Minister in terms of this Act; and

(c) Referring a dispute to a Labour Officer, designated agent or a person appointed by the Labour Court to conciliate the dispute if the Labour Court considers it expedient to do so;

(d) Appointing an arbitrator from the panel in subs (6) of section ninety-eight to hear and determine an application;

(d1) Exercise the same powers of review as would be exercisable by the High Court in respect of labour matters;

(e) Doing such other things as may be assigned to it in terms of this Act or any other enactment.”

The procedure for retrenchment of employees is provided for in section 12C of the Labour Act. Section 13 provides:

Wages and benefits upon termination of employment

(1) Subject to this Act or any regulations made in terms of this Act, where any person -

(a) Is dismissed from employment or his employment is otherwise terminated; or

(b) Resigns from his employment; or

(c) Is incapacitated from performing his work; or

(d) Dies;

he or his estate, as the case may be, shall be entitled to wages and benefits due to him up to the time of such dismissal, termination, resignation, incapacity or death, as the case may be, including benefits in respect of any outstanding vacation and notice period, medical aid, social security and any pension and the employer concerned shall pay such entitlements to such person or his estate, as the case may be, as soon as reasonably practicable after such event, and failure to do so shall constitute an unfair labour practice.

(1a) Wages and benefits payable to any person or to his or her estate in terms of this section shall not form part of or be construed as a retrenchment package which an employee is entitled to where his or her employment has been terminated as a result of retrenchment in terms of section 12C.

(2) Any employer who, without the Minister's permission, withholds or unreasonably delays the payment of any wages or benefits owed in terms of subsection (1) shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or both such imprisonment.”

In his supplementary heads of argument, counsel for the plaintiff conceded that section 13 of the Labour Act specifically excludes retrenchment packages which is included as an unfair labour practice by virtue of the all-embracing section 8(e)(iv) of the Labour Act, which provides that an employer commits an unfair labour practice if he fails to comply with a determination or direction which is binding upon him in terms of the Labour Act.

It is clear that a retrenchment package is provided for in the Labour Act. It is an entitlement of an employee whose employment is terminated in terms of section 12C of the Labour Act. Where an employer does not pay a retrenchment package or delays making payment, an employee has a remedy - including criminal sanction. Indeed, failure to pay constitutes an unfair labour practice. There are remedies available for unfair labour practices.

I find myself having to repeat what was stated in Matongo v Midlands State University HH174-13…, that:

This court has, in a number of cases, interpreted that ouster provision to mean that the Labour Court has jurisdiction in all matters where the cause of action and remedy for that are provided for in the Act; Medical Investments Ltd v Pedzisayi 2010 (1) ZLR 111 (H) 114 C; DHL International (Pvt) Ltd v Madzikanda 2010 (1) ZLR 201 (H) 204 A; Tuso v City of Harare 2004 (1) ZLR 1 (H); Moyo v Gwindingwi N.O. & Anor HB168-11 at pp 5-6 (now reported in 2011 (2) ZLR 368); Jambwa v GMB HH124-13 at p4;

I am in agreement with the postulation of MAKARAU JP (as she then was) in Medical Investment Ltd v Pedzisayi (supra) at 114 C that:

'In interpreting these two sections of the Act (i.e. section 89(1) and section 89(6)) this court has, in the authorities I have cited above, held that the Labour Court has exclusive jurisdiction in all applications and matters that are not only defined but are determinable in terms of the Act. In other words, the Labour Court has jurisdiction in all matters where the cause of action and the remedy for that cause of action are all provided for in this Act.'

I have cited the provisions of section 13 of the Act which entitle an employee to wages and benefits upon termination of the employment contract. In the event of a breach of those provisions the employee has remedies, including criminal prosecution, against the employer.”

In Chiwundo v Zimbabwe National Family Planning Council HH212-13…, I made the point:

To the extent that the applicant was entitled to appeal all the way to the Labour Court, it means that the substance of this application is, in essence, a labour dispute disguised as an application for a declarator. Section 89(6) of the Labour Act [Cap 28:01] has ousted the jurisdiction of all other courts, in the first instance, to hear and determine any application, appeal or matter falling under the jurisdiction of the Labour Court. The present dispute clearly falls under the ouster provisions as it should be determined by the Labour Court.”

See also William Bain & Company Holdings (Pvt) Ltd v Nyamukunda HH309-13.

In my view, the defendant's cause of action, being the non-payment of a retrenchment package, is found in the Labour Act. His remedy is also located in that Act. For that reason, the jurisdiction of this court has been ousted by section 89(6) of the Labour Act. It matters not that the package was agreed between the parties. In fact, it was approved by the relevant authorities, namely, the Works Council and the Minister of Public Service, Labour and Social Welfare. This court will still not exercise jurisdiction.

1. The plaintiff's point in limine is hereby upheld.

2. Jurisdiction in respect of the defendant's counter claim is declined.

3. The matter shall proceed to trial in respect of the plaintiff's claim.

4. The issue of costs is reserved until the end of trial.


MATHONSI J: The defendant was employed by the plaintiff as a driver attached to the Advisor to the Governor. He was issued with a Toyota Vigo motor vehicle registration number ABD7870 belonging to the employer for use in the discharge of his duties. He was retrenched from employment in January 2011 in terms of an approved retrenchment package which he signed in terms of which he is entitled to be paid a net sum of $19,312-80.

The plaintiff has sued the defendant seeking an order directing him to return the Toyota Vigo motor vehicle he is holding on to and damages for unlawful use of the said vehicle.

The suit is being contested by the defendant who alleges that the vehicle in question is part of his retrenchment package.

He initially took a point in limine that the dispute involving the motor vehicle is a labour one in which this court has no jurisdiction. Mr Uriri for the defendant, abandoned that point in limine, correctly in my view, on the basis that it was not well taken given that the plaintiff's cause of action is the action rei vindicatio, a purely civil remedy in which this court's jurisdiction has not been ousted by section 89(6) of the Labour Act [Cap 28:01].

The defendant has counter claimed seeking payment of $19,312-80 being unpaid retrenchment package and delivery of the registration book of the motor vehicle he claims is part of his retrenchment package.

The plaintiff objected to the defendant's counter claim on the basis that it is, in essence, a labour dispute which should be determined by the Labour Court enjoying exclusive jurisdiction by virtue of the ouster provision contained in section 89(6) of the Act. Mr Chitapi for the plaintiff submitted that as the defendant's claim is for payment of a retrenchment package which is provided for in section 13(1)(b) and section 13(2) of the Labour Act [Cap 28:01], this court's jurisdiction has been ousted by section 89(6). It is the Labour Court which enjoys exclusively.

Mr Uriri submitted that this court should exercise jurisdiction because in the counter claim the defendant is seeking to enforce a civil debt. The fact that the debt arose out of an employment relationship is irrelevant. He maintained that the Labour Court has no jurisdiction to hear and determine civil disputes, the disposition of which does not involve the application of employment law expressly provided for by statute. It was strongly argued on behalf of the defendant that the right of an individual to approach this court seeking relief other than that specifically set out in the Labour Act remains as section 89(6) does not take away the right for civil relief premised on purely civil law principles.

Section 89(6) provides;

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).”

Section 89(1) states that:

The Labour Court shall exercise the following functions:

(a) hearing and determining applications and appeals in terms of this Act; and

(b) hearing and determining matters referred to it by the Minister in terms of this Act; and

(c) referring a dispute to a Labour Officer, designated agent or a person appointed by the Labour Court to conciliate the dispute if the Labour Court considers it expedient to do so;

(d) appointing an arbitrator from the panel in subs (6) of section ninety-eight to hear and determine an application;

(d1) exercise the same powers of review as would be exercisable by the High Court in respect of labour matters;

(e) doing such other things as may be assigned to it in terms of this Act or any other enactment.”

The procedure for retrenchment of employees is provided for in section 12C of the Act. Section 13 provides:

Wages and benefits upon termination of employment

(1) Subject to this Act or any regulations made in terms of this Act, where any person -

(a) is dismissed from employment or his employment is otherwise terminated; or

(b) resigns from his employment; or

(c) is incapacitated from performing his work; or

(d) dies;

he or his estate, as the case may be, shall be entitled to wages and benefits due to him up to the time of such dismissal, termination, resignation, incapacity or death, as the case may be, including benefits in respect of any outstanding vacation and notice period, medical aid, social security and any pension and the employer concerned shall pay such entitlements to such person or his estate as the case may be, as soon as reasonably practicable after such event, and failure to do so shall constitute an unfair labour practice.

(1a) Wages and benefits payable to any person or to his or her estate in terms of this section shall not form part of or be construed as a retrenchment package which an employee is entitled to where his or her employment has been terminated as a result of retrenchment in terms of section 12C.

(2) Any employer who without the Minister's permission withholds or unreasonably delays the payment of any wages or benefits owed in terms of subsection (1) shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not exceeding two years or both such imprisonment.”

In his supplementary heads of argument, Mr Chitapi conceded that section 13 specifically excludes retrenchment package which is included as an unfair labour practice by virtue of the all embracing section 8(e)(iv) of the Act, which provides that an employer commits an unfair labour practice if he fails to comply with a determination or direction which is binding upon him in terms of the Act.

It is clear that a retrenchment package is provided for in the Act. It is an entitlement of an employee whose employment is terminated in terms of section 12C. Where an employer does not pay a retrenchment package or delays making payment, an employee has a remedy including criminal sanction. Indeed failure to pay constitutes an unfair labour practice. There are remedies available for unfair labour practices. I find myself having to repeat what was stated in Matongo v Midlands State University HH174-13 at p4 that:

This court has, in a number of cases, interpreted that ouster provision to mean that the Labour Court has jurisdiction in all matters where the cause of action and remedy for that are provided for in the Act; Medical Investments Ltd v Pedzisayi 2010 (1) ZLR 111 (H) 114 C; DHL International (Pvt) Ltd v Madzikanda 2010 (1) ZLR 201 (H) 204 A; Tuso v City of Harare 2004 (1) ZLR 1 (H); Moyo v Gwindingwi N.O. & Anor HB 168/11 at pp 5-6 (now reported in 2011 (2) ZLR 368); Jambwa v GMB HH 124/13 at p4;

I am in agreement with the postulation of MAKARAU JP (as she then was) in Medical Investment Ltd v Pedzisayi (supra) at 114 C that:

'In interpreting these two sections of the Act (i.e. section 89(1) and section 89(6)) this court has in the authorities I have cited above, held that the Labour Court has exclusive jurisdiction in all applications and matters that are not only defined but are determinable in terms of the Act. In other words, the Labour Court has jurisdiction in all matters where the cause of action and the remedy for that cause of action are all provided for in this Act.'

I have cited the provisions of section 13 of the Act which entitle an employee to wages and benefits upon termination of the employment contract. In the event of a breach of those provisions the employee has remedies, including criminal prosecution, against the employer.”

In Chiwundo v Zimbabwe National Family Planning Council HH212/13 at p 5 I made the point: “To the extent that the applicant was entitled to appeal all the way to the Labour Court, it means that the substance of this application is, in essence, a labour dispute disguised as an application for a declarator. Section 89(6) of the Labour Act [Cap 28:01] has ousted the jurisdiction of all other courts, in the first instance, to hear and determine any application, appeal or matter falling under the jurisdiction of the Labour Court. The present dispute clearly falls under the ouster provisions as it should be determined by the Labour Court.”

See also William Bain & Company Holdings (Pvt) Ltd v Nyamukunda HH 309/13.

In my view, the defendant's cause of action, being the non-payment of a retrenchment package, is found in the Act. His remedy is also located in that Act. For that reason, the jurisdiction of this court has been ousted by section 89(6) of the Act. It matters not that the package was agreed between the parties. In fact it was approved by the relevant authorities, namely, the Works Council and the Minister of Public Service, Labour and Social Welfare. This court will still not exercise jurisdiction.

1. The plaintiff's point in limine is hereby upheld.

2. Jurisdiction in respect of the defendant's counter claim is declined.

3. The matter shall proceed to trial in respect of the plaintiff's claim.

4. The issue of costs is reserved until the end of trial.



T.H. Chitapi & Associates, plaintiff's legal practitioners

Messrs Magaya - Mandizvidza, defendant's legal practitioners

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