Urgent
Chamber Application
MUREMBA
J:
The
applicant was employed as the Chief Executive Officer (CEO) of the
sixth respondent. The sixth respondent is Net One Cellular (Pvt) Ltd
a licensed provider of mobile and related telecommunications services
in Zimbabwe. The first to fifth respondent are its directors.
Following
a board meeting held on 20 February 2020 a special resolution to
suspend the applicant as Chief Executive Officer was passed. The
applicant successfully obtained an interim court order suspending
that resolution.
On
9 July 2020, the sixth respondent's board of directors wrote a
letter to the applicant advising him that his suspension pending
disciplinary hearing had been withdrawn and that he was now
reinstated as Chief Executive Officer with no loss of salary or
benefits.
In
less than 24 hours of reinstatement, a letter terminating the
applicant's employment on three months' notice was written by the
same board members of the sixth respondent and was delivered to the
applicant.
Again
the applicant successfully obtained an interim court order on 15 July
2020 under case number HC3611/20 suspending the effectiveness of the
letter of termination pending the hearing of the matter and its final
determination on 4 August 2020.
The
interim order has not yet been confirmed or discharged. Judgment is
still pending in this court.
That
notwithstanding, the first respondent on behalf of the sixth
respondent wrote a letter to the applicant on 21 December 2020
withdrawing the letter of termination of contract of 9 July 2020 and
reinstating him as CEO. On the same date, but in a different letter,
the first respondent wrote to the applicant again terminating his
employment contract on three months' notice with immediate effect.
The
applicant was advised that the President of the Republic of Zimbabwe
had given his endorsement for his removal from office of CEO of the
sixth respondent. The applicant was further advised that he would be
paid in lieu of the three months' notice as his services were no
longer required.
It
is this letter which prompted the applicant to file the present
urgent chamber application.
It
is the applicant's averment that the letter of termination of his
employment contract is illegal as his contract of employment cannot
be terminated on notice or in the manner that the respondents purport
to terminate it.
Furthermore,
there is an interim court order by CHINAMORA J barring the
respondents from giving effect to a similar letter which sought to
terminate his contract of employment on notice.
In
this application the applicant is seeking as against the respondents,
a prohibitory interdict in the interim and a declaratur on the return
day. The reliefs are couched as follows.
“TERMS
OF THE FINAL ORDER SOUGHT
That
you show cause to this Honourable Court why a final order should not
be made in the following terms:
1.
That the letter dated 21 December 2020 authored by the 1st respondent
purportedly for and on behalf of the 6th respondent addressed to the
applicant be and is hereby declared null and void.
2.
Any processes taken pursuant to the said letter be and are hereby
declared null and void.
3.
That any respondent(s) opposed to the granting of the Final Order be
ordered to pay costs, jointly and severally the one paying the others
to absolved on a legal practitioner-client scale.
INTERIM
RELIF GRANTED
Pending
the confirmation of the Provisional Order, the applicant be and is
hereby granted the following relief:
1.
That the effect of the letter dated 21 December 29020 drafted by the
1st respondent for and on behalf of the board directors of the 6th
respondent be and is hereby suspended as well as any further
processes taken in furthering its objects.
2.
The respondents be and are hereby interdicted from publishing the
illegal dismissal of or termination of the applicant's contract of
employment in terms of s11(2) of the Public Entities Corporate
Governance (General Regulations S.I. 168 of 2018) and further
interdicted from advertising applicant position in terms of s8 of the
same Statutory Instrument.
1.
That the respondents be interdicted from terminating the applicant's
employment contract pending the final determination of this matter
and case number HC3611/20.
SERVICE
OF PROVISIONAL ORDER
This
provisional order shall be served on the respondents or their legal
practitioners by the applicant's legal practitioners.”
In
short, in the interim the applicant wants the respondents barred from
terminating his employment contract pending the return date. He also
wants the respondents barred from publishing his dismissal or
termination of his employment contract and advertising his position.
On the return date the applicant will be seeking a declaratur that
the letter of 21 December 2020 terminating his employment contract is
a nullity.
In
response to the application the respondents raised some points in
limine which I deal with hereunder.
Lack
of Jurisdiction
The
respondents averred that this is a labour matter wherein the
applicant is effectively seeking an order setting aside the
termination of his employment contract on notice on 21 December 2020.
The respondents contended that the applicant should challenge the
termination thereof in terms of the Labour Act [Chapter 28:01]. The
applicant ought to approach a labour officer who should determine
whether or not there is need to follow due process when terminating
an employment contract on notice. The ruling should thereafter be
submitted to the Labour Court for confirmation or discharge in terms
of the provisions of Amendment Act No. 5 of 2015.
The
Labour Court is set up as a specialist court to deal with employment
matters in terms of s172 of the Constitution.
This
court has no jurisdiction to determine the applicant's complaint
that his contract was terminated without regard to due process. This
court has no inherent jurisdiction to deal with purely employment
matters, its jurisdiction having been restricted by the Constitution
which created the Labour Court as a Specialist Court to handle
employment matters.
Mr.
Zhuwarara for the respondents submitted that in Stanley Nhari v
Robert Gabriel Mugabe & Ors SC61/20 it was clarified that the
High Court does not have jurisdiction to deal with labour matters. He
referred to para 47 of the judgment. It reads;
“On
a careful interpretation of the Constitution, it is clear that the
High Court does not, in fact, have unlimited jurisdiction over all
civil and criminal cases in Zimbabwe. The general jurisdiction of the
High Court is restricted by the very Constitution itself which has
created specialised courts to handle specific areas of the law.
The
High Court has no jurisdiction to determine unfair labour practices
which, in terms of the Labour Act, should more properly be handled by
labour officers appointed in terms of that Act.”
Mr.
Zhuwarara argued that in casu the applicant is claiming that he was
unlawfully dismissed.
Referring
to para 42 of the Nhari judgment, he submitted that the procedure for
dealing with an unfair labour practice is to be found in s93(5) of
the Labour Act. Para 42 provides:
“The
procedure for dealing with an unfair labour practice is to be found
in s93 of the Labour Act. The unfair labour practice is handled by a
labour officer who attempts conciliation. The officer may, by consent
of the parties, refer the matter to arbitration or that failing,
proceed in terms of s93(5) of the Labour Act.”
In
response Mr. Mubaiwa for the applicant submitted that the Nhari
judgment that the respondents seek to rely on is not applicable to
the present matter. The circumstances are different.
He
submitted that whilst in the Nhari judgment the appellant had
approached this court for an order that he be paid monies that were
due to him arising out of his employment contract, in casu the
applicant is seeking an interdict, a prohibitory interdict to be
specific. He makes that clear in para 5 of his founding affidavit.
The Labour Court cannot grant that relief. It has no jurisdiction to
grant interdicts whereas the High Court has jurisdiction to grant
such.
Mr.
Mubaiwa further submitted that in any case the Labour Act is not the
applicable statute in the applicant's case, but the Public Entities
Corporate Governance Act [Chapter 10:31] and its General Regulations.
He
submitted that this is in terms of Chapter 9 and more specifically
s197 of the Constitution of Zimbabwe (Amendment Act No. 20) 2013
which provides for terms of office of heads of government controlled
entities. S197 reads;
“An
Act of Parliament may limit the terms of office of chief executive
officers or heads of government controlled entities and other
commercial entities and public enterprises owned or wholly controlled
by the State.”
Mr.
Mubaiwa submitted that the Act of Parliament being referred to in
s197 of the Constitution is the Public Entities Corporate Governance
Act, and not the Labour Act. He submitted that s16 of the Public
Entities Corporate Governance Act is the provision which deals with
the termination of the term of office of the head of a State
Controlled Commercial entity.
Mr.
Mubaiwa further submitted that Chapter 9 of the Constitution and the
Public Entities Corporate Governance Act do not prohibit the High
Court from exercising jurisdiction in a matter such as the present
one.
He
further submitted that a reading of s3(1) of the Labour Act shows
that the Labour Act is not applicable to the applicant who is
governed by s197 of the Constitution. It was his argument that the
applicant's conditions of service are provided for in the
Constitution by virtue of s197.
To
begin with, it is pertinent to point out that Mr. Zhuwarara did not
dispute that the Public Entities Corporate Governance Act is the Act
that was enacted to provide for the governance of public entities in
compliance with Chapter 9 of the Constitution and in terms of s197
thereof.
To
resolve the issue of whether or not this court has jurisdiction in
this matter it is necessary to examine the provisions of s3 of the
Labour Act which deals with the application of the Act. It provides;
“(1)
This Act shall apply to all employers and employees except those
whose conditions of employment are otherwise provided for in the
Constitution.
(2)
For the avoidance of any doubt, the conditions of employment of
members of the Public Service shall be governed by the Public Service
Act [Chapter 16:04].
(3)
This Act shall not apply to or in respect of —
(a)
members of a disciplined force of the State; or
(b)
members of any disciplined force of a foreign State who are in
Zimbabwe under any agreement concluded between the Government and the
Government of that foreign State; or
(c)
such other employees of the State as the President may designate by
statutory instrument.”
In
City of Gweru v Richard Masinire SC56/18 BHUNU JA interpreted this
provision.
He
stated that it confers jurisdiction of the Act over all employees
except those it expressly excludes. And those that are expressly
excluded are:
1.
Those whose conditions of employment are otherwise provided for in
the Constitution.
2.
Members of the Public Service.
3.
Members of a disciplinary force of the State.
4.
Any other employee designated by the President in a Statutory
Instrument.
In
casu I do not believe that the applicant falls in any one of the
excluded categories.
I
am not in agreement with Mr. Mubaiwa's argument that the
applicant's conditions of service are provided for in the
Constitution by virtue of s197 of the Constitution. Rather, I am in
agreement with Mr. Zhuwarara's argument that the applicant's
conditions of service are not found in the Constitution, but in an
Act of Parliament, the Public Entity Corporate Governance Act which
was enacted in compliance with Chapter 9 of the Constitution, which
chapter includes s197.
One
of the purposes of the Act as can be seen from its preamble is to
provide a uniform mechanism for regulating the conditions of service
of members of public entities and their senior employees.
S197
of the Constitution does not provide any conditions of service for
employees of government controlled entities. It simply says that An
Act of Parliament may limit the terms of office of chief executive
officers or heads of government controlled entities and other
commercial entities and public enterprises owned or wholly controlled
by the State.
Surely
this provision cannot by any stretch of imagination be interpreted as
providing conditions of service.
Clearly,
the applicant does not fall within the category of employees that are
excluded by s3 of the Labour Act. The Labour Act is therefore
applicable to him.
In
the letter of termination of applicant's employment contract dated
21 December 2020, it is not indicated in terms of which law (whether
the Labour Act or the Public Entities Corporate Governance Act) the
employment contract was terminated.
The
letter is silent.
However,
the letter of termination of 9 July 2020 although it was subsequently
withdrawn, made it clear that termination had been made in terms of
s12(4) of the Labour Act. On the other hand, the applicant avers that
his contract of employment as read together with s16 of the Public
Entities Corporate Governance Act which provision provides for the
dismissal of chief executive officers does not provide for the
termination of his employment contract on notice.
The
point that the applicant was making here was that his employment
contract was terminated in terms of the Public Entities Corporate
Governance Act which has no provision for the giving of notice.
I
will not be drawn into making a determination of whether or not the
notice was lawfully given. That is not the issue before me.
The
issue that is before me is simply whether or not this is an
employment matter which should be determined in terms of labour law.
If
it is a labour or employment matter, I will decline jurisdiction on
the basis of the Nhari judgment that I have already referred to
above.
It
was Mr. Mubaiwa's further argument that even if the Labour Act is
applicable to the applicant, this court has jurisdiction to deal with
the present application because the applicant is seeking an interdict
which only the High Court and not the Labour Court can grant.
As
was correctly argued by Mr. Zhuwarara, in deciding what relief an
applicant is seeking, the court must look at the grounds of the
application and the evidence adduced in support of the order prayed
for. See Cainos Chingombe & Another v City of Harare SC177/2020
para 20.
The
fact that the applicant is seeking a particular relief is not itself
decisive. In other words what is important or what matters are the
grounds on which the application is based rather that the order or
relief that is being sought. Regard should be had to the substance of
the application and the averments contained therein instead of the
relief that is being sought.
The
relief being sought cannot be the sole decider of whether or not a
matter is properly before the Court. The decider is the dispute that
has been placed for adjudication before the court.
In
casu in para 5 of the founding affidavit, the applicant outlined the
purpose of his application. He averred that he is seeking a
prohibitory interdict and ancillary relief to the effect that the
purported letter of dismissal be declared null and void. From para 16
to 18 he outlined what he termed “the complaint.”
In
para 16 he averred that, “the letter of termination is illegal and
has no force of law in that the applicant's contract of employment
cannot be terminated on notice or in the manner that the respondents
purport to terminate it.”
In
para 18 he averred that, “The letter of termination..… is illegal
and contemptuous in that it seeks to circumvent an extant interim
court order… of this Honourable Court under case number
HC3611/2020…”
In
the subsequent paragraphs the applicant went on to make averments
which deal with the requirements of an interdict.
In
para 19 he averred that he has a clear right to lawful process by the
respondents which right was wantonly violated. On irreparable harm he
averred that in terms of his contract as read together with the
Public Entities Corporate Governance General Regulations he cannot be
dismissed on notice as purported in the letter of termination.
He
further averred that assuming that the President gave his
endorsement, the decision to dismiss him was illegal, arbitrary and
an affront to the laws of natural justice in that he was never
invited to make any representations.
He
averred that most importantly, the essential processes to terminate
his contract were not compiled with.
He
averred that he has rights in terms of the interim court order which
interdicts the respondents from terminating his contract on notice.
He
averred that he stands to suffer irreparable prejudice by the
unlawful process.
What
is clear from the applicant's averments is that although he avers
that he is seeking an interdict, he is basically challenging
termination of his employment contract by way of notice, a way which
he says is not provided for in his employment contract and in the
General Regulations of the Public Entities Corporate Governance Act.
He
is challenging the legality of the termination process.
He
says it was unlawful, hence his request for a declaratur that the
letter of termination and any processes taken pursuant to the said
letter are null and void.
I
take the view that this is a dispute that relates to the employment
relationship between the applicant and the sixth respondent. The
dispute is whether or not the applicant's employment contract was
lawfully terminated.
Such
a dispute falls for determination in terms of labour law under the
Labour Act and its structures.
S2A
of the Labour Act spells out the purpose of the Act as follows.
“2A(1)
The purpose of this Act is to advance social justice and democracy in
the workplace by —
(a)
giving effect to the fundamental rights of employees provided for
under Part II;
(b)
…. [Paragraph repealed by section 3 of Act 7 of 2005]
(c)
providing a legal framework within which employees and employers can
bargain collectively for the improvement of conditions of employment;
(d)
the promotion of fair labour standards;
(e)
the promotion of the participation by employees in decisions
affecting their interests in the work place;
(f)
securing the just, effective and expeditious resolution of disputes
and unfair labour practices.”
S2A(1)(f)
is pertinent. It seeks to secure a just, effective and expeditions
resolution of employment disputes and unfair labour practices.
In
terms of the Nhari judgment, the High Court has no jurisdiction in
labour and employment issues. Clearly this is not a matter for an
interdict and a declaratur.
Under
the guise of seeking an interdict and a declaratur, the applicant is
actually challenging the termination of his employment contract and
seeking reinstatement as CEO of the sixth respondent through the back
door.
In
view of the foregoing, I come to the conclusion that I have no
jurisdiction to deal with this matter which is an employment matter.
In
the result, it be and is hereby ordered that:
1.
Jurisdiction is declined.
2.
The applicant shall pay the respondents' costs.
Mlotshwa
& Maguwudze, applicant's legal practitioners
Gill,
Godlonton & Gerrans, respondents' legal practitioners