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MRL3702 EXAM ANSWERS 13 MAY 2024

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MRL3702 EXAM ANSWERS 13 MAY 2024 QUESTION 1 S’boko and Gatedi have been working for Matswaiing-a-matsho (Pty) Ltd (MM) on six months contracts which were renewed twice for further six months. They are earning R10 000.00 a month each. They are now left with a month to complete tenures of their contracts with MM. S’boko is worried that in the next two months they will be without jobs, but Gatedi does not seem to be worried. Instead, Gatedi tells S’boko that she must stop being worried because they became permanent employees of MM by operation of law. ANSWER THE FOLLOWING QUESTION WITH RELEVANT AUTHORITY: Discuss the correctness of Gatedi’s view of their position with MM. Include in your discussion the possible defences which MM may raise to rebut Gatedi’s view. (25) [25] QUESTION 2 Lefarahatlha Clothing (Pty) Ltd (LC) plants, harvests and sells cotton in the North -West Province of South Africa. It employs two hundred employees. LC pays its employees well; however, it included in their contracts of employment a standard clause which prohibits employees from forming, joining, and participating in trade union programmes and activities. Furthermore, their contracts state that employees who breach this clause will be dismissed from LC. ANSWER THE FOLLOWING QUESTIONS WITH RELEVANT AUTHORITY: (i) Discuss the lawfulness or fairness of this clause with reference to the international law, the Constitution and the LRA. (15) (ii) Discuss valid requirements for the conclusion of contract of employment. (10) [25] QUESTION 3 3.1 The right to privacy, dignity, and security of person are basic human rights and are protected in terms of the Constitution. Majadinoga, a local clinic in South Africa intends to conduct HIV tests for its nurses as it believes that their daily work involves physical contact with patients and therefore, a possible threat to patients with open wounds. Rradipudi, a nurse at Majadinoga refuses to line up herself for a test on the basis of the constitutional rights indicated above. ANSWER THE FOLLOWING QUESTION WITH RELEVANT AUTHORITY: (i) List at least six factors which according to the Labour Court should be considered when an employer is contemplating on conducting the HIV test at the workplace. (12) 7 MRL3702 May/June 2024 3.2 Sbu and Maria work for 3-Job (Pty) Ltd (3-Job). One day Sbu stomped into the manager’s office, Nikita Krushev very angry to report Maria for the sexual harassment which she allegedly committed in the office. Maria flatly denied ever harassing Sbu sexually. Unfortunately, 3-Job had two versions: f Sbu’s allegation and Maria’s denial. A year later, 3-Job had still not acted on the allegation and Sbu wants to hold the employer liable for not acting and therefore, failing both the common law and statutory duty to ensure safety of the employees in the workplace. Discuss the requirements approved by the Labour Appeal Court which must be met by Sbu to hold the employer liable in terms of section 60 of the EEA. (8) 3.3 List five examples of employers regarded as ‘designated employers’ for affirmative action purposes. (5) [25] QUESTION 4 Transport Workers Union (TWU) and Metrorail (Pty) Ltd entered into a collective agreement which entails the following: 10% salary increase, a 5% house and vehicle allowance. Further, the parties agreed that this dispensation was effective for three years and applied across the board. Two months later, a group of the highest paid employees in Metrorail lodged a complaint that, the increase should not apply across the board because, for them the benefits were all taken away by the South African Revenue Services (SARS). The 10% salary increase, the group explained further, put them in a bit higher tax bracket, and increased their liability towards SARS which effectively takes away all the benefits. They argued that although the employer gave them an increase, SARS took it away from them. They, therefore, demanded a 15% increase to remedy the unfair situation. ANSWER THE FOLLOWING QUESTIONS WITH RELEVANT AUTHORITY: (i) Discuss the effect of the collective agreement and whether it can be changed as per the group’s demand. (15) (ii) Assume that Moshishi and Mvala are not members of TWU. Can the above-mentioned collective agreement apply to them as well? (10) [25]

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QUESTION 1
The issue in this scenario is whether S’boko and Gatedi became permanent
employees by operation of law.

The LRA offers safeguards against unjust labour practices and acknowledges that
certain contracts with a fixed duration may be converted to indefinite contracts under
certain conditions. For example, if the employment relationship continues for more
than three months and the employer does not provide permanent employment 1.
Merely renewing fixed-term contracts does not automatically transform them into
permanent contracts.

Section 186 (1) (b) offers some protection to fixed-term employees by providing that,
a dismissal can occur if an employee had a reasonable expectation that their fixed
term contract of employment would be renewed by the employer on the same or
comparable conditions. 2



While there is no automatic conversion prescribed by law, the courts have
recognized that under certain conditions, continuous renewal of fixed-term contracts
may indicate an ongoing employment relationship similar to permanent employment.
In the case of Golding v University of Cape Town and Others, the Constitutional
Court discussed on whether a sequence of fixed-term contracts could be regarded
as having undergone automatic conversion into permanent contracts. The court
ruled that a sequence of fixed-term contracts may be converted into permanent
contracts provided certain criteria are fulfilled, such as the reasonable expectation of
ongoing employment and the lack of a valid basis for not renewing the contract.

MM could raise several defences to refute Gadedi’s claims. Firstly, MM could assert
that the original agreements with S'boko and Gatedi were initially for a set duration of
six months each and were thereafter extended twice for further six-month periods. If
the contracts explicitly state their length and the purpose to employ individuals for a
certain period, MM can argue that there was no intention to establish permanent
employment. MM may argue that the contract renewals were justified by operational
requirements or the necessity for temporary employment on certain projects. MM

1
Golding v University of Cape Town and Others [2014] ZACC 27.
2
Section 188 (1) of the Labour Relations Act.

, might defend the use of fixed-term contracts and oppose the automatic conversion to
permanent status if their employment was project-based or seasonal in nature. As
evidence, MM may establish compliance with the Basic Conditions of work Act
(BCEA) by providing formal contracts that explicitly state the period of work, as
required for fixed-term contracts. MM's adherence to legal obligations reinforces the
notion that the contracts were not meant to be permanent. Finally, MM may
demonstrate adherence to the Basic Conditions of Work Act (BCEA) by issuing
official contracts that clearly specify the duration of employment, as mandated for
fixed-term contracts. MM's strict compliance with legal responsibilities supports the
idea that the contracts were not intended to be permanent.

In conclusion, while Gatedi's assertion may offer hope, MM could present valid
defenses to rebut the claim that S'boko and Gatedi have automatically become
permanent employees by operation of law. The outcome would depend on the
specific circumstances of their employment, the language of their contracts, and the
interpretation of relevant labour laws by the courts. Consulting with a legal expert
specializing in South African labour law would be advisable for both parties to clarify
their rights and obligations.

MM may be able to provide strong arguments to refute Gatedi's claim that S'boko
and Gatedi have become permanent workers by operation of law, even if Gatedi's
statement may provide a degree of hope. The result would be determined by the
particulars of their employment, the wording of their contracts, and the courts'
interpretation of the applicable labour laws.

QUESTIION 2

(i)

The issue in these facts is whether the inclusion of a clause in the employment
contracts by Lefarahatlha Clothing (LC) that prohibits employees from forming,
joining, and participating in trade union programs and activities is lawful and fair
according to international law, the Constitution of South Africa, and the Labour
Relations Act (LRA).

Various international human rights agreements safeguard the right to freedom of
association, which includes the ability to establish and join trade unions. The

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