Vredenhof Organic Estate (Pty) Ltd v Hendriks and Another

The appellant, owner of a farm in Stellenbosch, sought to evict two former employees occupying a cottage on the farm. The respondents were occupiers under the Extension of Security of Tenure Act 62 of 1997 (ESTA) and their right of residence arose from their employment. Both respondents were dismissed following disciplinary hearings and referred their dismissals to the CCMA, where settlement agreements were concluded and payments made. After notice to vacate was given and ignored, the appellant applied for eviction. The Magistrate refused eviction, holding that the first respondent’s employment had not been lawfully terminated under the Labour Relations Act (LRA) and that the second respondent could not be evicted due to the first respondent’s right to family life.

The appeal was upheld. The respondents were ordered to vacate the premises by 15 March 2011, failing which the Sheriff was authorised to evict them on or after 17 March 2011. No order as to costs was made.

The case clarifies the interaction between the Labour Relations Act and ESTA, confirming that CCMA settlement agreements can lawfully terminate employment for purposes of section 8(2) of ESTA and do not constitute an impermissible waiver of occupiers’ ESTA rights. It provides guidance on when a right of residence arises solely from employment and on the enforceability of CCMA settlements in eviction proceedings.