Road Traffic Management Corporation v Tasima (Pty) Limited; Tasima (Pty) Limited v Road Traffic Management Corporation

Tasima (Pty) Limited, a private company, was contracted by the Department of Transport to develop, operate and maintain the electronic National Traffic Information System (eNaTIS). Following litigation that culminated in Tasima I, the Constitutional Court declared an extension of the contract invalid and ordered Tasima to hand over the eNaTIS and related services to the Road Traffic Management Corporation (RTMC), an organ of state. After Tasima was evicted from the premises in April 2017, the RTMC took over operation of eNaTIS. Tasima then approached the Labour Court seeking a declaration that, under section 197 of the Labour Relations Act, the contracts of employment of its employees automatically transferred to the RTMC as a result of the handover. The Labour Court and Labour Appeal Court both held that section 197 applied, but differed on the effective date of transfer. Further litigation concerned whether interim enforcement of the declaratory order was permissible under section 18(3) of the Superior Courts Act.

RTMC’s appeal against the applicability of section 197 was dismissed. Tasima’s cross-appeal on the effective date of transfer was upheld, confirming 5 April 2017 as the transfer date. The Labour Appeal Court’s alteration of the transfer date to 23 June 2015 was set aside. Tasima’s separate application for leave to appeal regarding interim enforcement under section 18(3) was dismissed. No orders as to costs were made.

The case is a leading authority on the application of section 197 of the Labour Relations Act to transfers involving organs of state and outsourced public services. It clarifies that section 197 applies regardless of the public or regulatory nature of the transferee and provides important guidance on determining the effective date of a transfer. The judgment also clarifies the limits of interim enforcement under section 18(3) of the Superior Courts Act.