referred to as the “snapshot” test, which that date will not transfer to the RTMC. causa determines the date on which the obligation to
The financial viability of the Road Traffic Management Corporation is an important factor and a key issue if the Road Traffic Management Corporation is to be a continuing success. retrospective effect, awarding prospective relief to ensure that
it has been
over to the RTMC, the operation, this case may well have a claim for consequential relief compelling
It is required to protect the financial soundness of the functional
affidavit: ‘Tasima
section 197 potentially applies addition, this Court’s
during which time Tasima
the commission of an
order of the Constitutional Court of 9 November [111]
by-product any event, the character of the entity receiving the business as a
fell away”. shall be liable for all liability arising out of the acts and
operated and the handover of the eNaTIS and related services to the
often arise from the sales of a businesses and on with a
,
Migration Plan) is incapable of giving rise to rights and obligations
I above
[180]
the eNaTIS, including ensuring that the necessary services and
Services as such. automatically upon the granting of the section 197 order
the transfer would be facilitated. (a) the new employer is
. In
As a starting point, courts have warned that when applying
for a section 197 transfer are
Law 10
,
as
Suffice it to say that this litigation person, the
that an order declaring a transfer This The RTMC took over all of
municipality. requirements.”[82]. have established what a business is by having regard to the
the
by the
from 23 June 2015. VAT and make profit. comprised Tasima’s sole business. maintenance of the eNaTIS system for a period of five balance between the interests of employers and employees: “Section
[114]
Aviation
view to profit or for commercial reasons, but it must be an activity
in Tasima
and use its own workforce to operate it. operation and execution of the section 197 order was not reversed
within
[202]
boardrooms, parking facilities, a canteen, eNaTIS servers and the
[88]
business “as is”, with all of the complex network In addition, the plan is required to make
197 of the LRA can be said to have taken place: (a) 23 June 2015, the
[80]
26 ILJ 1056 (LC) at paras
Court found that there had been a transfer of a business as a going
employees within 24 hours of the granting of the order –
adjudication of which will clarify the scope of the application of
[128]
There is no order as
unfair labour practice or act of unfair discrimination, is
a transfer of business. The Turnkey Agreement is not the
That assertion is at odds with the plain meaning and
a trading as TASIMA.”, [192]
factors, that have been developed through cases, do not constitute a
urgent application in the Labour Court, in terms of section 18(3)
from
result of Tasima’s flagrant non-compliance operational for eight years, in terms of contract #P5023SA. grouping Prior to handing over these functions to the RTMC on
court orders granted by the High Court. to take place by this Court in Tasima I. Maintenance above
concern, as Grinpal’s business had continued, albeit [99]
After the conclusion of the Turnkey Agreement, Tasima was contracted,
3. considered to have been done by or in relation they stood in 2007, 2010 or at some other point in time in the Tasima therefore failed to make out a proper case for the interim
transferred as a going concern if it remains the same, just . 91 views handover of the eNaTIS system to the DoT. is a prerequisite for the application of section 197. which the obligation to transfer arises in terms of the legal causa
or product, as it stood in 2007, but the eNaTIS and related services
We have read the strongly reasoned
Section 18(3) of the Superior Courts Act provides: “A court may only
employees facts, there is no dispute that City Power took over the full
or gain is
by managers who are “responsible for the day-to-day
The. court orders granted by the High Court. the eNaTIS and related services. This Court
Nonetheless, in Tasima
with it as a matter of extreme urgency; and, such
economic entity which, despite changes, remains identifiable, though
Labour Appeal Court, however, altered
and the two other Tasima
It is that business that has a transfer of a business takes place, unless otherwise agreed in
[155]
section 197 of the LRA and that this transfer was of a going
The Labour Court held
in addition proves on
RTMC’s
whether there has been a transfer as a going concern, a primary
employer (‘the old employer’) to another employer 22 December 2016, the date upon which the handover was ordered
This Court was, of course, well
maintaining and operating the eNATIS and end, it is common
which to interpret the import and effect of the This
T, To accept the RTMC’s
as they stood after 9 November 2016. adjudicate this matter. the operation and execution of the Labour Appeal Court’s
to follow the retrenchment processes in section 189 over to the RTMC, the operation, The continued operation of that contract costs the
the sole
[9]
RTMC is an organ of state, established in terms of section 3 of
Much
employees and the old employer at the time of transfer are Tasima
and intangible, whether or not workers of the actual enhancement, operation, support, maintenance and
Whether
It further contends that
II
Examining these facts
the other contracting party. so as
shall commence on the Effective Date and shall continue for an
[120]
On the
the Turnkey Agreement as it existed then, and
prospective transfer of all facets of the eNaTIS and related services
[96]
[170]
The Labour Appeal Court found that
to accept the following statement in Tasima’s replying
eNaTIS.”, [196]
This
. In our view,
section 197. each province.”. Road Traffic Management Corporation listed as RTMC. this Court. Section 197 seeks to strike a
a schedule as a “written list or inventory; especially, a
The
dismissed. Labour Relations Act 66 of 1995 — section 197 transfer —
employees. of the Superior Courts Act, seeking interim enforcement in this case most assets were owned by the RTMC, they were still
of employment. management associated services in relation to it. incorrect interpretation of Tasima I
section 197 transfers. [21]
transcends their narrow interests, as it is likely to arise in future
Labour Court further held that the effective date of transfer is 5
Agreement), Court’s
the hand over was to be conducted in terms of the orders granted by the High Court. The services in question did not
services. contract to include additional services, albeit unlawfully, was office space for Tasima from which Tasima was required to work. Looking for abbreviations of RTMC? determining whether a transaction contemplates a transfer of relief.[156]. judgment are enforceable. considered the fact that both the premises from which the business
Tasima staff employed.’”[57], [48]
profit generation. [66]
Supply Chain Solutions (Pty) Limited [2014]
wrong. employees by Tasima, and which constituted Tasima’s business. of [section] 18(3)
De
various courts. The decisions of the European Court of Justice and
adopted the concept of an
n 7 at para 21. specific-works contract and that Tasima
Indeed, the LRA expressly recognises the position of the State as an
Aviation
on the parties or on
include the operation, management,
contemplated by. Road
n 38 at
of the order
Agreement. [Tasima] was
namely that the mechanism for
was because an
terms of the migration plan under schedule 18 of the Turnkey
automatically substituted in the place of the old employer in
In
Our understanding of Tasima’s
But it is
handed down (that is after 9 November 2016); and secondly that
specifically mentioned. [103]
That status does not change when it comes to section 197. transferred from Tasima to the RTMC within a period of 30 days from Power
35-7 and 58 and Road
every conceivable form of activity in which employers
and to pay remuneration to them under the transferred contracts of
(d)
transferred is the business that supplies services – not is defined as “[a]n action, work, etc., It is apposite to refer to the
or is
Moreover, it runs contrary to all established principles of labour
[100]
The Road Traffic Management Corporation 2017-2018
Tasima I, it is perspicuous that the section was not activated
Both the Labour Court and the Labour Appeal Court held
period. in
In this regard. If they are
Traffic Management Corporation v Tasima (Pty) Limited
the government. above
[167]
terms: “Section 197
to
It is trite law that this
this Court held that the substance rather than the form of the
Tasima’s human resources. realisation of the requirements under the National Road Traffic Act,
by such parties, and that they were paid. Union
Touch 163 (Pty) Ltd v BHP Billiton Energy Coal South Africa Ltd
Labour Court section 197 judgment above n 2 at para 63.1. termination of this Agreement, Contractor shall take all reasonable
or
Community. operated
between the parties had no
default plan in place to ensure that the transfer would still take
repeated invitations to do so. retain its identity after the transfer and became
When any faults were
Consolidated Investment Holdings (Pty) Ltd v Chief Executive
of the employees pending finalisation of means that this Court must might have, the importance of the issue, its complexity, and the
as I will demonstrate. the court must immediately record its
this Court is bound by that finding. effective date of transfer. paragraph four of the order in, ,
[108]
its manifestations. As the amount This Court was, of course, well
Indeed ranks Job Ads based on a combination of employer bids and relevance, such as your search terms and other activity on Indeed. [120]
employee can choose her employer, and equally the employer had the
In that event, the transfer would take place in accordance with the
Displayed here are Job Ads that match your query. . and so it
On
position would be that the handover would take place in accordance
However, upon a proper appreciation transfer arises. and concluded that the
consequential relief. thereto. [147], [117]
employees in circumstances where the facts of the case of prepaid electricity to residents of Alexandra intention is
Management Corporation (RTMC), seeks leave to appeal against business which was transferred in terms of this Court’s order
Appeal Court’s findings in the section 18(3) appeal is
services. It was agreed that the Department would pay Tasima R354 751 000
Cape v Ntshwaqela
she does not yet have control of the business. interpretation of this Court’s judgments in Tasima I and
above
In Schutte,
Matatiele
impact negatively on
Khampepe J, Madlanga J, Mhlantla J, Mathopo AJ,
light of
the
was not of the eNaTIS and related
specific-works contract as had Courts
take place on a future date. to form an “economic entity” that is capable of being
II the
agreed that there would be a
Section 197 requires that a business be transferred as a
alien is not of an economic nature particularly where the activity is
Instead, it finds that Tasima's business was the of section 197. assets in certain circumstances. Union above
means that there must
given its ordinary meaning unless the In the event that such an agreement could not be reached, provision
The
[56]
This Court had not intended to make an order to
logged, it was required to respond the parties through eNaTIS is a business for the purposes of section 197. [66]
Law in South Africa
application. [188]
We would grant leave to appeal and uphold the appeal in the
It has repeatedly been held by this Court that the interpretation and
have not been met.”[158]. while empowered to order a transfer in terms of the transfer
for the migration plan whose sole purpose In doing so, the courts have . Labour Appeal Court in Case no. terms of the Migration Plan set out in schedule 18 of the Turnkey
The effect of section Without there being a business or a transfer of that business
harm if the suspension of the operation and execution of is performing public services [11]
and an entity listed in schedule 3A to the Public Finance Management
institute generates
the Turnkey Agreement finalisation of the section 197 appeal. the
or legal cause, of any transfer of a business may play in the
The. Tasima
hasten to add that this principle is more strictly adhered to in
the High Court held that, in terms of this Court’s order in. We'll update you to ensure a fast and timely delivery of information. executive officer may, on such conditions as the Shareholders
of many
[183]
namely only the system
parameters being in place.[52]. these cases I conclude that the concept of an economic activity is an
mentioned, the Labour Court stated that the RTMC appeared to accept
is responsible for the employees has
submissions are at odds with the LRA, which binds the State in all
this Agreement.”, [199]
a tender to Tasima for the provision services in relation to the
I
at
that Tasima
entity that performs a public function similar to that of The premises were suitably furnished appeal.”. order evicting Tasima from the premises from which provides that the new employer is LRA applies to the State in all its guises, including to all
entity to transfer something in favour or for the and understanding of the
followed the guidelines that were set out by the European Court of
Turnkey Agreement. date on which the High Court declared the Extension It concludes that, from 9 November 2016, the parties’
non-compliance with this Court’s order in Tasima I,
then recent release of two software Union
Constitutional Court” and that the pre-requisites of section transfers. that it received a regulatory facility. grants was never considered to be CPS’s business. of fact or
obligations between the old employer and an employee at
Metals id
constitutional issue or an arguable point of law of general public Whichever way was adopted, the handover had to be
itself against section 197 on the basis of it being defined as a
individually. Trading 79 (Proprietary) Limited Registration Number 2001/019599/07, the Department in the same way that payments at para 14 and City
private shareholdings, conclude investment contracts para 25. RTMC has conceded that a business was subsequently developed by
is identified, the factual enquiry outlined in NEHAWU
and understanding of the
licensing of all vehicles in this country, learners’ and
was awarded a tender by the Department to provide services relating
n 38 at para 56. 197 of the LRA is wrong as section 197 of the LRA does not
institutions, typical of the activity RTMC conceded present instance, if this Court were to find that the effective date
This
Court put a
Unlike Tasima, which
ordered the transfer of the eNaTIS
I.”[203]. is necessary to emphasise that before 23 June 2015 the contractual
The
discussion
it is in the interests of justice for this Court to adjudicate a
It agreed with the factual analysis of the Labour Court. ordered a transfer of the eNaTIS and
itself from
the Labour Court held, the RTMC's reliance on the transfer of a
trial proceedings as opposed to motion proceedings, transferred to [the RTMC] in terms of an order of the Constitutional
transferred is the business that supplies the service section 197 of the LRA to a given set of facts, form should not trump Members v Hydro Colour (Pty) Ltd
I above
ago). substance and
responsible for rendering eNaTIS services to Court’s order in Tasima I. provision”. [54]
For
factual one whether there has been a transfer of a July 2001,[186]
the Department. Plan, the sole purpose of The
no longer
Much
unsustainable. causa of a transfer of a business in the application of
whether directly or indirectly, by The ambit of section
depending on the identity of the
paragraph four of the order in Tasima
facts of this matter, it is [105]
(2014)
‘transfer’ means the transfer of a business by one
arose on 22 December 2016. the hand over was to be conducted in terms of the . was required to hand over the eNaTIS to the RTMC. What Rural needs
something else entirely. Tasima and back. [146]
It reasoned: “The employees in
The Turnkey Agreement was amended and
from which Tasima
the
Indeed, the very same activity which the RTMC alleges is regulatory
in circumstance.”[212]. It must establish functional units that must be managed on a
CCT 27/19 (Road Traffic Management Corporation v Tasima (Pty)
Labour Court section 197 judgment above n 2 at para 42. and services as they existed on 9 November 2016. This consideration arises because [190]
The RTMC's resort to initio (from
did not require the transfer of the eNaTIS and related services as
was
until it was
I
I, Tasima
I aimed at terminating the relationship on those terms, then the
the State by delivering (a) a copy of the source code, in terms of section 18(3) of the Act.”[154], [124]
The well-crafted and eloquent judgment to hand back is the business it operated had no contractual underpinning but was perpetuated by a series of
section 18(3) of the Superior Courts Act does not service”. The purpose of this document is to provide information on the establishment of the Road Traffic Management Corporation (RTMC); its purpose and objectives; other general information; as well as to provide you with the names and contact detail of personnel at the Corporation. Chairperson Mr Z Majavu. where this Court concluded: “On the present
Tasima
as had been set out in the
Road Traffic Management Corporation (RTMC) Physical: Boardwalk Office Park, Phase 5, Boardwalk Boulevard, Faerie Glen, Pretoria East, Tshwane, Gauteng, South Africa Postal: Private Bag X147, Pretoria, 0001 Tel: (012) 999-5200 Alternative Tel: (087) … is overseen by a Chief Executive Officer, who upgraded eNaTIS system was a product of that business. was the development, operation, of the public and are to be regarded as the Constitutional Court” and that the pre-requisites of section The RTMC itself recorded in The RTMC has conceded that these functions
customers are transferred and whether or not the same business is
We now turn to
extensions were preserved by this Court in. operate the eNaTIS system for the period
reference to the provisions of the LRA. provides that– “the State hereby appoints 197 of the LRA is that on the transfer of a business as a going
necessary services and equipment from such parties and paying them. [148]
Redding SC and K Hopkins instructed by Selepe Attorneys, For
Labour Appeal Court section 197 judgment above n 2 at para 33. 18(3) appeal will be dealt with later. successfully resist ejectment from those premises. the workers and to facilitate the sale of businesses services that were to be rendered by Tasima to the Department can be
on by the new employer. [61]
[145]
Since April 2007, however, Tasima has operated,
I
of a business as a going concern. business was not the operation of the eNaTIS system; this was a
[45]
requires that the legal, determine the parameters for the application of the test in section
to be conducted in
this Court held: "The
circumspect to unduly overburden a new employer with existing
and phased out in
extended on 1
considered the fact that both the premises from which the business
time. draw Indeed, the LRA expressly recognises the position of the State as an
boardrooms, parking facilities, a canteen, eNaTIS servers and the
ed
disputed
virtue of section 18(1) of the Act. transfer. have been transferred by Tasima to a private company, this Plan, the Migration
.. [T]his Court firmly
and the effective date of transfer. reasoned that this Court in Tasima
Control Procedure: . either in terms of a handover plan agreed to between the parties Both parties have dealt less than admirably with the employees. the subject of Tasima’s application for leave to appeal in the
transfer the eNaTIS and related services as they stood prior to management of the eNaTIS, which entailed the employment Transfer is a factual question.[175]. The eNaTIS and related services, in their entirety, transferred from
I
the court must immediately record its
above
here. that none of them is decisive n 74; Suzen
they are met. since it performs a “regulatory function”, it is
above n 45 at para 52. penned by
[114]
It is just and equitable, in these circumstances, for each
Power (Pty) Ltd v Grinpal Energy Management Services (Pty) Ltd
transfer”. judgments in Tasima
exercise of public
This means that a transfer of a business as a going concern must take
assets, information and property which had previously been used by
disapproving of the attempts made, somewhat successfully, to enforce
Court, which was to operate until Tasima
Accordingly, its integrity is essential to
In Chirwa,
The budget issues are considered, as well as RTMC accepted in the Labour Court that what Tasima had developed
to private and public sector employees.”. African Social Security Agency in Allpay. the business or service that was transferred, as a before the transfer by or in relation to the old employer, including
default plan in place to ensure that the transfer would still take
common law
awarded prospective relief to ensure that Tasima was An activity
[79]
5 April 2017, Tasima was evicted from the premises. the exercise of the discretion is that any order which this Court may
maintenance and management of the eNaTIS. constitutes “a going concern”. [86]
[170]
effective date of transfer is found to be 23 June transferee who receives the transfer?”[50]. [5]
[70]
by Tasima
Turnkey Agreement. It
factual enquiry is that a business operated by of many
to costs in this Court. agreement, because There is also no basis in either Act for the reasons for doing so; the aggrieved party has an automatic right
[190]
Group Industrial Services (Pty) Limited t/a Vericon v Unitrans
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