African Sun Limited, a hotel conglomerate, retrenched 29 employees during the COVID-19 pandemic. The respondents had occupied the applicant's residential properties as a benefit arising from their employment contracts. After retrenchment, the respondents refused to vacate the properties, claiming a right of retention based on their pending appeal to the Labour Court challenging the legality and package of their retrenchment. Retrenchment packages had been negotiated through worker representatives, approved by the retrenchment board, and paid to all affected employees. The applicant issued summons against each respondent individually claiming eviction. The respondents entered appearances to defend and filed pleas. The applicant then brought an application for summary judgment, claiming the pleas were dilatory and disclosed no bona fide defence. The cases were consolidated by court order.
Summary judgment granted in part. Orders made that: (1) Application for summary judgment succeeds in part; (2) The 1st to 29th respondents and all those claiming occupation through them shall vacate the applicant's premises within 15 days, failing which the Sheriff is authorized to evict them; (3) The respondents shall pay costs on an attorney and client scale, jointly and severally, each paying the other to be absolved. Claims for utility bills and holding over damages were not granted.
An employee whose employment contract has been terminated has no right of retention to occupy the employer's property, even if the employee has lodged an appeal challenging the termination before the Labour Court or other labour forums. The owner of property has a vindicatory right (rei vindicatio) against the whole world to reclaim possession from anyone holding it without consent. Section 92(E) of the Labour Act provides that an appeal to the Labour Court does not suspend the decision appealed against. The High Court has jurisdiction to determine rei vindicatio claims notwithstanding section 89(6) of the Labour Act which confers jurisdiction on the Labour Court for labour matters. Under Rule 30(1) of the High Court Rules, relief in a summary judgment application is limited to what is claimed in the summons.
The court expressed agreement with previous judicial criticism of legal practitioners who fail to apprise themselves of new jurisprudential developments, particularly when the Supreme Court has settled legal issues. The court noted that utility bills and holding over damages, while potentially quantifiable, must be properly articulated, quantified and pleaded in the summons before they can be granted in summary judgment. The court observed that summary judgment is an extraordinary remedy granted sparingly as it conflicts with the audi alteram partem rule, but is designed to protect against dishonourable litigants who have no answerable defence and use delaying tactics. The COVID-19 pandemic's catastrophic socio-economic effects on the hospitality industry and labour market were acknowledged as background context.
This case reinforces the established principle in Zimbabwean labour and property law that termination of an employment contract extinguishes an employee's right to occupy employer-provided accommodation, regardless of any pending labour appeal. It confirms the High Court's jurisdiction to determine rei vindicatio claims even where labour disputes are pending before the Labour Court. The case clarifies that section 92(E) of the Labour Act means appeals do not suspend decisions, and employees cannot use pending appeals as a basis for retention rights over employer property. It also demonstrates the proper application of summary judgment procedure under Rule 30, confirming that relief is limited to what is claimed in the summons. The award of attorney-client scale costs serves as a deterrent against pursuing defences based on outdated or superseded jurisprudence.