IMVULA Quality Protection (Pty) Ltd and Others v University of South Africa

The University of South Africa (UNISA) had outsourced security services at its campuses to private companies, including iMvula Quality Protection (Pty) Ltd and Red Alert TSS (Pty) Ltd. Following nationwide student protests under the banner of “Fees Must Fall”, UNISA resolved to insource a significant portion of outsourced services. In October 2016, UNISA decided to terminate the existing security service contracts and adopt a ‘shared services model’, under which UNISA would employ the majority of security guards directly, while an external service provider would supply management, supervision, equipment, and infrastructure. As a result, UNISA terminated the appellants’ contracts and employed approximately two-thirds of the security personnel previously employed by them, without taking over the appellants’ management structures, operational systems, or assets essential to running a security business.

The appeal was dismissed. The finding of the court a quo was upheld, and section 197 of the Labour Relations Act was held not to be applicable.

The case clarifies the application of section 197 of the LRA in the context of insourcing, particularly where an institution employs workers previously engaged by contractors without taking over the contractor’s business infrastructure. It confirms that the transfer of employees alone does not necessarily constitute a transfer of a business as a going concern and reinforces a fact-driven approach to section 197 disputes.