ASSIGNMENT 2 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: APRIL 2025
, MRL3702
Assignment 2 Semester 1 2025
Unique Number:
Due Date: April 2025
Labour Law
Legal Opinion: Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. and
Others (JA85/2022) [2023] ZALAC 27
1. Summary of the Facts
The case of Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. and Others arose
from a dispute regarding the calculation of employees' wages under the National
Minimum Wage Act 9 of 2018 ("the Act"). Quantum Foods restructured its payslips to
include a contractual bonus and employer contributions to a provident fund in its
calculation of the minimum wage. The General Workers Union of South Africa,
representing its members employed by Quantum Foods, objected to this approach,
arguing that these payments should not be considered in determining compliance with
the Act. The matter was referred to arbitration, where the arbitrator ruled that Quantum
Foods' wage calculation method did not comply with the Act, a decision later upheld by
the Labour Court. Quantum Foods then appealed the Labour Court’s ruling to the
Labour Appeal Court (LAC).
2. Issues in Dispute
The central issues in dispute were: (a) Whether a contractual bonus paid by Quantum
Foods to employees should be included in the calculation of the minimum wage. (b)
Whether employer contributions to a provident fund should be factored into the
employees’ hourly wage calculation.