Solidarity obo Scholtz M v Gijima Holdings (Pty) Ltd

Mr Mornè Scholtz, employed by Gijima Holdings (Pty) Ltd, concluded an Employee Loyalty Incentive Scheme Agreement (ELISA) in September 2012. In terms of the ELISA, he received retention bonuses paid in advance in return for undertaking to remain in Gijima’s employ for specified 12‑month periods following each payment. In June 2014, Gijima purported to terminate the scheme but, after representations by employees including Mr Scholtz, paid him a further retention bonus in September 2014. Mr Scholtz resigned shortly thereafter, before completing the required 12‑month service period. Gijima deducted the amount of the retention bonus from his final remuneration. Solidarity, acting on his behalf, claimed that the deduction was unlawful.

The appeal was dismissed with costs; the Labour Court’s judgment upholding the deduction of the retention bonus was confirmed.

The case clarifies the contractual nature of retention bonus agreements in South African labour law, confirming that such agreements are reciprocal and enforceable according to their terms. It affirms that employees who accept advance retention payments remain bound to render the agreed service, and that employers may recover such payments upon premature resignation without offending section 34 of the BCEA.