MRL3702
ASSIGNMENT 1 (SEMESTER 1)..
DUE DATE: March 2025..
PREVIEW:
QUESTION 1
Legal Opinion: Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. and Others
1. Summary of the Facts
In the case of Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. and Others, Quantum Foods sought
to align its employees' wages with the National Minimum Wage Act 9 of 2018 (NMWA). To achieve this,
the company restructured its payslips to include a contractual bonus and contributions to a provident
fund, aiming to meet the minimum wage requirements. The contractual bonus could be received either
annually or as monthly installments, based on the employee's preference. However, the union
representing the employees contested this approach, arguing that such payments should not be included
in the calculation of the minimum wage as per section 5 of the NMWA. This dispute was escalated to the
Commission for Conciliation, Mediation and Arbitration (CCMA) for resolution.
2. Issues in Dispute
The primary issues in dispute were:
• Whether the contractual bonus paid by Quantum Foods could be included in the calculation of
employees' wages to meet the national minimum wage requirements.
• Whether the employer's contributions to the provident fund should be considered part of the
employees' wages for the purpose of complying with the NMWA.
3. The Court’s Decision
Disclaimer:
The Labour Appeal Court (LAC) found that the contractual bonus paid by Quantum Foods to
The materials provided are intended for educational and informational purposes only. They should not be
submitted as original work or used in violation of any academic institution's policies. The buyer is solely
responsible for how the materials are used.
ASSIGNMENT 1 (SEMESTER 1)..
DUE DATE: March 2025..
PREVIEW:
QUESTION 1
Legal Opinion: Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. and Others
1. Summary of the Facts
In the case of Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. and Others, Quantum Foods sought
to align its employees' wages with the National Minimum Wage Act 9 of 2018 (NMWA). To achieve this,
the company restructured its payslips to include a contractual bonus and contributions to a provident
fund, aiming to meet the minimum wage requirements. The contractual bonus could be received either
annually or as monthly installments, based on the employee's preference. However, the union
representing the employees contested this approach, arguing that such payments should not be included
in the calculation of the minimum wage as per section 5 of the NMWA. This dispute was escalated to the
Commission for Conciliation, Mediation and Arbitration (CCMA) for resolution.
2. Issues in Dispute
The primary issues in dispute were:
• Whether the contractual bonus paid by Quantum Foods could be included in the calculation of
employees' wages to meet the national minimum wage requirements.
• Whether the employer's contributions to the provident fund should be considered part of the
employees' wages for the purpose of complying with the NMWA.
3. The Court’s Decision
Disclaimer:
The Labour Appeal Court (LAC) found that the contractual bonus paid by Quantum Foods to
The materials provided are intended for educational and informational purposes only. They should not be
submitted as original work or used in violation of any academic institution's policies. The buyer is solely
responsible for how the materials are used.
