Adcorp Workforce Solutions (Pty) Ltd v CCMA and Others

Adcorp Workforce Solutions (Pty) Ltd provided temporary employment services to Sacks Packaging (Pty) Ltd. Forty‑one employees placed at Sacks Packaging were members of NUMSA. In 2019 NUMSA invoked section 198A(3)(i) of the Labour Relations Act 66 of 1995 (LRA), seeking a declaration that the employees were deemed to be employees of Sacks Packaging. Adcorp and NUMSA concluded a settlement agreement confirming that the employees were deemed indefinite employees of Sacks Packaging. The parties agreed that a remaining issue — whether the employees should continue wearing Adcorp’s uniforms — would be determined by arbitration. A CCMA commissioner issued a directive that the employees should not be required to wear the labour broker’s uniforms. Adcorp applied to the Labour Court to review and set aside that ruling, contending that the CCMA lacked jurisdiction.

The Labour Court found that the CCMA lacked jurisdiction, reviewed and set aside the ruling regarding the uniforms, and made no order as to costs.

The case clarifies the limits of CCMA jurisdiction under sections 198A and 198D of the LRA, particularly after a settlement agreement has confirmed deemed employees as permanent employees of the client. It underscores that section 198D disputes cannot be used to regulate ancillary employment conditions once deeming has been finalised, and that jurisdiction cannot be created by agreement.