,MRL3702 Assignment 1 (COMPLETE ANSWERS)
Semester 1 2025 - DUE March 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
MULTIPLE CHOICE,ASSURED EXCELLENCE
Study the case of Quantum Foods (Pty) Ltd v Commissioner H
Jacobs N.O. and Others (JA85/2022) [2023] ZALAC 27; [2024] 1
BLLR 32 (LAC); (2024) 45 ILJ 71 (LAC) (18 October 2023) and
write a two-page (maximum) legal opinion about the case. Your
answer must include the following aspects – • Summary of the
facts of the case (2) • Issue(s) in dispute in the case (1) • The
court’s decision (1) CIV3701 CPR3701 PVL3701 • At the end
provide a well-supported legal opinion which should cover the
importance of the case (the part on the importance of the case
is important as it carries more marks). (6) MRL3701
Legal Opinion: Quantum Foods (Pty) Ltd v Commissioner H
Jacobs N.O. and Others
Summary of the Facts
In the case of Quantum Foods (Pty) Ltd v Commissioner H
Jacobs N.O. and Others (JA85/2022) [2023] ZALAC 27, Quantum
Foods sought to comply with the National Minimum Wage Act 9
of 2018 (NMWA) by restructuring its employees' remuneration.
The company included contractual bonuses and provident fund
contributions in the calculation of employees' wages to meet
the prescribed minimum wage requirements. The General
, Workers Union of South Africa, representing the employees,
disputed this practice, arguing that such inclusions were
contrary to the NMWA's provisions. The matter was referred to
the Commission for Conciliation, Mediation, and Arbitration
(CCMA), where the arbitrator ruled against Quantum Foods,
leading to subsequent appeals in the Labour Court and the
Labour Appeal Court (LAC).
Issues in Dispute
The primary issue in dispute was whether contractual bonuses
and provident fund contributions could be included in the
calculation of the minimum wage under the NMWA.
Specifically, the interpretation of Section 5(1) of the NMWA,
which excludes "gratuities including bonuses, tips or gifts" from
the wage calculation, was central to the dispute.
The Court’s Decision
The Labour Appeal Court overturned the decisions of the CCMA
and the Labour Court. The LAC held that the term "gratuities" in
Section 5(1) refers to discretionary bonuses, not contractual
ones. Therefore, contractual bonuses, being enforceable
obligations, should be included in the wage calculation for
compliance with the NMWA. Additionally, the court found that
provident fund contributions made by the employer on behalf
of employees constitute part of the "amount payable in money
for ordinary hours of work" and should also be included in the
minimum wage calculation.
Semester 1 2025 - DUE March 2025; 100%
TRUSTED Complete, trusted solutions and
explanations.
MULTIPLE CHOICE,ASSURED EXCELLENCE
Study the case of Quantum Foods (Pty) Ltd v Commissioner H
Jacobs N.O. and Others (JA85/2022) [2023] ZALAC 27; [2024] 1
BLLR 32 (LAC); (2024) 45 ILJ 71 (LAC) (18 October 2023) and
write a two-page (maximum) legal opinion about the case. Your
answer must include the following aspects – • Summary of the
facts of the case (2) • Issue(s) in dispute in the case (1) • The
court’s decision (1) CIV3701 CPR3701 PVL3701 • At the end
provide a well-supported legal opinion which should cover the
importance of the case (the part on the importance of the case
is important as it carries more marks). (6) MRL3701
Legal Opinion: Quantum Foods (Pty) Ltd v Commissioner H
Jacobs N.O. and Others
Summary of the Facts
In the case of Quantum Foods (Pty) Ltd v Commissioner H
Jacobs N.O. and Others (JA85/2022) [2023] ZALAC 27, Quantum
Foods sought to comply with the National Minimum Wage Act 9
of 2018 (NMWA) by restructuring its employees' remuneration.
The company included contractual bonuses and provident fund
contributions in the calculation of employees' wages to meet
the prescribed minimum wage requirements. The General
, Workers Union of South Africa, representing the employees,
disputed this practice, arguing that such inclusions were
contrary to the NMWA's provisions. The matter was referred to
the Commission for Conciliation, Mediation, and Arbitration
(CCMA), where the arbitrator ruled against Quantum Foods,
leading to subsequent appeals in the Labour Court and the
Labour Appeal Court (LAC).
Issues in Dispute
The primary issue in dispute was whether contractual bonuses
and provident fund contributions could be included in the
calculation of the minimum wage under the NMWA.
Specifically, the interpretation of Section 5(1) of the NMWA,
which excludes "gratuities including bonuses, tips or gifts" from
the wage calculation, was central to the dispute.
The Court’s Decision
The Labour Appeal Court overturned the decisions of the CCMA
and the Labour Court. The LAC held that the term "gratuities" in
Section 5(1) refers to discretionary bonuses, not contractual
ones. Therefore, contractual bonuses, being enforceable
obligations, should be included in the wage calculation for
compliance with the NMWA. Additionally, the court found that
provident fund contributions made by the employer on behalf
of employees constitute part of the "amount payable in money
for ordinary hours of work" and should also be included in the
minimum wage calculation.
