MRL3702
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: MARCH 2025
, MRL3702
Assignment 1 Semester 1 2025
Unique Number:
Due Date: March 2025
Labour Law
Question 1: Fairness in Disputes Concerning Bonuses and Remuneration
In both Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. and Others and Van Wyk v
Albany Bakeries Limited, the principle of fairness in remuneration disputes is examined in
relation to contractual and discretionary bonuses.
Key Issues:
The distinction between contractual and discretionary bonuses.
Whether an employer’s financial situation affects their obligation to pay bonuses.
How fairness is applied under South African labor law.
Analysis:
In Quantum Foods, the court ruled that contractual bonuses and employer provident fund
contributions should be included in minimum wage calculations, while discretionary bonuses
should not.
In Van Wyk, the employer’s unilateral change to the employee’s position was found to be unfair,
reinforcing the principle that contractual terms must be upheld.
Labour law principles (such as the Basic Conditions of Employment Act and common law
contract principles) require that agreed-upon remuneration, including contractual bonuses, be
honored unless renegotiated.
While financial hardship may be a consideration, courts generally prioritize fairness and
employment contract terms over an employer’s ability to pay. Employers facing financial
difficulties should renegotiate terms rather than unilaterally amending or withdrawing agreed
bonuses.
Question 2: Legal Principles in Bonus Payments
The Van Wyk case provides insight into whether a bonus forms part of an employee’s
remuneration.
ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: MARCH 2025
, MRL3702
Assignment 1 Semester 1 2025
Unique Number:
Due Date: March 2025
Labour Law
Question 1: Fairness in Disputes Concerning Bonuses and Remuneration
In both Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. and Others and Van Wyk v
Albany Bakeries Limited, the principle of fairness in remuneration disputes is examined in
relation to contractual and discretionary bonuses.
Key Issues:
The distinction between contractual and discretionary bonuses.
Whether an employer’s financial situation affects their obligation to pay bonuses.
How fairness is applied under South African labor law.
Analysis:
In Quantum Foods, the court ruled that contractual bonuses and employer provident fund
contributions should be included in minimum wage calculations, while discretionary bonuses
should not.
In Van Wyk, the employer’s unilateral change to the employee’s position was found to be unfair,
reinforcing the principle that contractual terms must be upheld.
Labour law principles (such as the Basic Conditions of Employment Act and common law
contract principles) require that agreed-upon remuneration, including contractual bonuses, be
honored unless renegotiated.
While financial hardship may be a consideration, courts generally prioritize fairness and
employment contract terms over an employer’s ability to pay. Employers facing financial
difficulties should renegotiate terms rather than unilaterally amending or withdrawing agreed
bonuses.
Question 2: Legal Principles in Bonus Payments
The Van Wyk case provides insight into whether a bonus forms part of an employee’s
remuneration.
