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AI summary
The Supreme Court of Appeal dealt with an appeal about severance pay claimed by NUMSA and employees of SCAW after retrenchment. The court held that the claims were claims in terms of s 41(2) of the Basic Conditions of Employment Act and that s 41(4) could be relied on as a defence, but that the papers did not allow a decision on the reasonableness issue. The high court’s order was replaced with no order on the application and a costs order against the applicants.
This may be relevant to employment and labour matters involving severance pay, contractual employment terms and the operation of s 41 of the BCEA.
Evidence from source
Claim for payment of severance pay due in terms of the contract of employment – application of s 41 of the Basic Conditions of Employment Act – whether employer may rely on the defence in terms of s 41(4)
Supports: Summary of the issue on appeal
Their claims for payment are therefore claims, ‘in terms of subsection (2)’. Accordingly, subsection (4) applies to the determination of their entitlement to severance pay in the amounts they claimed.
Supports: Summary that s 41(2) and s 41(4) were applied