Amalungelo Workers’ Union and Others v Philip Morris South Africa (Pty) Limited and Another

Amalungelo Workers’ Union and 75 of its members, employed by Philip Morris South Africa (Pty) Limited and Leonard Dingler (Pty) Limited, alleged that their employers unlawfully deducted tax relating to company car fringe benefits from their remuneration. The applicants contended that the deductions contravened section 34 of the Basic Conditions of Employment Act 75 of 1997 because they were made without written consent, were not authorised by law, and failed to take depreciation of the vehicles into account. They approached the Labour Court seeking refunds of the deducted amounts with interest and an interdict restraining further deductions. The Labour Court, raising the issue mero motu, held that it lacked jurisdiction to directly enforce section 34 of the Act in the absence of a contractual claim and dismissed the claim. Leave to appeal was refused by the Labour Court and the Labour Appeal Court, prompting the applicants to approach the Constitutional Court.

Leave to appeal was granted. The order of the Labour Court dismissing claim one for lack of jurisdiction was set aside, and the matter was remitted to the Labour Court for determination on the merits.

This case clarifies the scope of the Labour Court’s jurisdiction under the Basic Conditions of Employment Act and confirms that employees may directly approach the Labour Court to enforce statutory rights without first referring disputes to labour inspectors. It affirms a constitutionally compliant, access-enhancing interpretation of section 77 and corrects earlier Labour Court jurisprudence that restricted direct enforcement of the Act.