Fedlife Assurance Limited v Wolfaardt

The respondent was employed by the appellant under a fixed-term contract for five years commencing on 1 December 1996. Before expiry, the appellant purported to terminate the contract with effect from 31 December 1998, alleging redundancy. The respondent accepted the repudiation, cancelled the contract, and sued in the High Court for damages for breach of contract. The appellant raised a special plea contending that the Labour Court had exclusive jurisdiction under the Labour Relations Act 66 of 1995 (LRA), and that the respondent was confined to remedies under the LRA.

The appeal was dismissed with costs, including the costs of two counsel. The High Court’s setting aside of the special plea was confirmed.

This is a leading authority affirming that the LRA does not extinguish common-law contractual remedies for employees on fixed-term contracts. It draws a clear distinction between disputes about the fairness of a dismissal under the LRA and disputes about the lawfulness of termination under the common law, and confirms that High Courts retain jurisdiction over the latter. The case is foundational in delineating concurrent operation of labour statute remedies and common-law contract principles.