F & J Electrical CC dismissed approximately 30 employees in January 2009, allegedly for operational requirements following the loss of municipal contracts. The employees, represented by MEWUSA, referred an unfair dismissal dispute to the bargaining council for conciliation, which failed. The dispute was then taken to the CCMA, where the employer stated the dismissals were for operational requirements; the commissioner ruled the CCMA lacked jurisdiction and directed referral to the Labour Court. The union referred the matter late to the Labour Court, alleging in its statement of claim that the employees did not know the reason for dismissal. F & J Electrical failed to file a response, leading to a default judgment awarding each employee 24 months’ remuneration on the apparent basis that the dismissals were due to union membership. This conclusion relied on affidavits filed without service on the employer. F & J Electrical applied unsuccessfully for rescission in the Labour Court and was refused leave to appeal by the Labour Court and Labour Appeal Court, before approaching the Constitutional Court.
Leave to appeal was granted and the appeal upheld. The Labour Court’s default judgment was set aside and replaced with an order rescinding the default judgment and granting the employer leave to file a response to the statement of claim within ten court days. No order as to costs was made.
The case clarifies the scope of rescission under section 165(a) of the Labour Relations Act, confirming that no showing of good cause is required where an order was erroneously granted. It reinforces the duty of the Labour Court to satisfy itself of jurisdiction, especially compliance with statutory time limits and condonation. The judgment also underscores procedural fairness in default proceedings and cautions against reliance on unserved or contradictory evidence, particularly where serious constitutional findings such as automatically unfair dismissals are made.