The applicant was a former employee of the respondent whose employment contract was terminated in 2001. He obtained a judgment by consent against the respondent at the Labour Court for unlawful dismissal and was awarded damages in the sum of Z$26,076,252 on 27 May 2009 after quantification. The applicant sought to register this Labour Court judgment with the High Court in terms of s 92B(3) of the Labour Act [Chapter 21:08] to enable enforcement. The respondent opposed the registration on two grounds: first, that the Labour Court lacked jurisdiction to hear the matter, rendering the judgment a nullity; and second, that the judgment was expressed in Zimbabwean dollars from before 2010, which is now a moribund currency, making the judgment incapable of enforcement and therefore a brutum fulmen (an ineffectual act).
1. The application is struck off the roll. 2. The applicant is to pursue his legal rights against the respondent in terms of the law. 3. No order as to costs.
1. When the High Court registers a Labour Court judgment under s 92B(3) of the Labour Act, it performs an administrative function without review or appeal jurisdiction and cannot consider challenges to the Labour Court's jurisdiction. 2. Challenges to the jurisdiction of the Labour Court must be pursued through appeal, review, or rescission proceedings - not during registration proceedings. 3. A judgment expressed in a moribund or obsolete currency is incapable of enforcement and constitutes a brutum fulmen. 4. Only the Labour Court has jurisdiction under s 2A(1)(f) of the Labour Act to exercise its equitable jurisdiction to convert awards from obsolete currencies into usable, enforceable currencies. 5. A debt is not extinguished merely because the currency in which it is expressed has become obsolete, but the judgment must be converted to an operational currency to be enforceable.
The court noted that it was aware the Labour Court had previously turned down the applicant's application for "valuation of salaries, benefits and severance pay" after the judgment was granted. The court observed that while the applicant appeared to have "hit a brick wall at the Labour Court," he may need to refocus and reconsider his options. The court exercised its discretion to strike the matter off the roll rather than dismiss it, being "wary of non-suiting the applicant," to enable him to seek legal advice on the way forward. The court emphasized principles of equity and social justice in resolving labour disputes where damages can no longer be paid in the currency originally awarded, citing the Supreme Court's guidance in Madhatter Mining Company v Tapfuma and Fleximail (Pvt) Ltd v Samanyau.
This case clarifies the limited role of the High Court when registering Labour Court judgments under s 92B(3) of the Labour Act - the High Court performs only an administrative function without review or appeal jurisdiction. It establishes that challenges to the Labour Court's jurisdiction must be pursued through proper appeal or review proceedings, not during registration proceedings. The case also reaffirms that judgments expressed in obsolete currencies are unenforceable as brutum fulmen, but importantly confirms that only the Labour Court has jurisdiction to convert such awards into usable currencies in exercise of its equitable powers under s 2A(1)(f) of the Labour Act. This provides important guidance on the enforcement of historical Labour Court awards affected by Zimbabwe's currency changes.