CaseNotes LogoCaseNotes
  • Home
  • Library
  • Research
  • Discussion Hub
  • Wiki
  • Latin Dictionary
  • Question Bank
  • Settings
S

Student

Student Account

South African Law • Jurisdictional Corpus
HomeLibraryResearchQuestionsSettings
Judicial Precedent
Ask AI

Food & Allied Workers Union v L Ngcobo N O (M Ndlela) and M Mkhize

Citation(353/12) [2013] ZASCA 45
JurisdictionZA
Area of Law
Labour LawContract Law
Free account

Get the most out of this judgment

Create a free CaseNotes account to save this case, see how it's cited, get an AI summary, and search 10,000+ SA judgments.

Create free accountor sign in
Law of Mandate
Damages

Facts of the Case

Ndlela and Mkhize were long-serving employees of Nestlé South Africa (Pty) Ltd (Ndlela from 1981, Mkhize from 1982) who were dismissed in May 2002 as part of a restructuring exercise. Although not initially members of FAWU, they joined the union after learning of the proposed retrenchments. They approached FAWU for assistance, and FAWU undertook to represent them before the Commission for Conciliation, Mediation and Arbitration (CCMA) and, if necessary, the Labour Court. A conciliation hearing took place on 18 June 2002 and a certificate of non-resolution was issued. FAWU failed to refer the dispute to the Labour Court within the prescribed 90-day period or thereafter. FAWU also failed to inform the respondents of this failure or to apply for condonation. Eventually, in June 2004, FAWU informed the respondents it would not proceed with their claims. The respondents then instituted actions for damages in the High Court for breach of the mandate. The KwaZulu-Natal High Court (Swain J) found in their favour, awarding each respondent damages of R107,232 plus interest. FAWU appealed.

Legal Issues

  • Whether a trade union accepting a mandate to represent employees in unfair dismissal proceedings before the CCMA and Labour Court owes a contractual duty to the employees
  • Whether a trade union is liable in damages for breach of that mandate by failing to timeously refer a dispute to the Labour Court
  • Whether the employees' failure to themselves apply for condonation for late filing bars a claim for damages against the union
  • What the proper measure of damages is in such circumstances
  • Whether compensation awarded under section 194 of the LRA should be calculated under the pre-amended or amended version of the section
  • The distinction between compensation for unfair dismissal and damages for breach of contract

Judicial Outcome

The appeal was dismissed with costs. The cross-appeal by the respondents (seeking double the compensation awarded) was also dismissed but with no order as to costs in respect of the cross-appeal. The award of the High Court in favour of each respondent of R107,232 plus interest at 15.5% per annum from 28 August 2004 to date of payment was confirmed.

Ratio Decidendi

A trade union that accepts a mandate to represent employees in unfair dismissal proceedings before the CCMA and Labour Court is bound to perform that mandate faithfully, honestly and with care and diligence, regardless of whether it receives remuneration. Where the union breaches that mandate by failing to timeously refer a dispute to the Labour Court and then repudiates the mandate, the affected employees are entitled to claim damages without themselves having to apply for condonation for late filing. The principle that no person can take advantage of their own wrong (nullus commodum capere potest de injuria sua propria) excuses the employees from taking steps that would have been the union's responsibility under the mandate. The measure of damages is the compensation that would have been awarded by the Labour Court had the dispute been properly referred. In determining that compensation under section 194 of the LRA (as amended), the court must consider what is just and equitable in all circumstances, taking into account factors such as the extent of procedural deviation, length of service, age, prospects of alternative employment, and severance packages received, though the latter do not necessarily preclude compensation as it is in the nature of a solatium.

Obiter Dicta

The majority noted that even if one were to approach the matter on the basis of the pre-amended section 194 of the LRA (which created an 'all or nothing' regime for procedural unfairness), the weight of relevant factors would still favour compensation at 12 months' salary. The court also observed that compensation under the LRA is distinct from damages and comprises recompense for both patrimonial and non-patrimonial (sentimental) loss, including a solatium for injury to feelings caused by the manner of dismissal. The court commented on the 'dismal state of affairs' created by the pre-amended section 194(2), which the 2002 amendments sought to address. The dissenting judgment of Southwood AJA contains extensive obiter on the test for condonation and the factors to be considered, expressing the view (contrary to the trial judge) that an application for condonation would probably have succeeded given the merits of the case and the importance of the matter to the respondents, despite the long delay and inadequate explanation.

Legal Significance

This case establishes important principles regarding the liability of trade unions for breach of mandate when they undertake to represent employees in labour disputes. It confirms that: (1) a trade union that accepts a mandate to represent employees owes them a contractual duty to perform that mandate with care and diligence, regardless of whether remuneration is received; (2) a union cannot escape liability by asserting that the employee was not entitled to assistance under its constitution once it has in fact undertaken the mandate; (3) where a union breaches its mandate by repudiating it, the affected employees are not required to themselves take steps (such as applying for condonation) that would otherwise have been the union's responsibility - the union cannot take advantage of its own wrong; (4) the measure of damages for breach of such a mandate is the compensation that would have been awarded in the Labour Court; and (5) the amended section 194 of the LRA (allowing discretion to award just and equitable compensation up to 12 months' salary) applies to pending disputes. The case also illustrates the application of general contract law principles (election, repudiation, causation) in the labour law context.

Case relationship graph

Case Network

Explore 1 related case • Click to navigate

Current Case
Related Case

Cases Cited in This Judgment

  • Ashcor Secunda (Pty) Ltd v Sasol Synthetic Fuels (Pty) Ltd[2011] ZASCA 158 (28 September 2011)
    Applies

    Applied to establish that a party's own repudiation may release the aggrieved party from taking measures otherwise required by the contract.

  • Gauteng Gambling Board & another v MEC for Economic Development, Gauteng Provincial Government(620/2012) [2013] ZASCA 67 (27 May 2013)
    Appeal From

    The Supreme Court of Appeal heard the appeal (and cross-appeal) on 7 March 2013 and delivered judgment on 28 March 2013. The majority (Ponnan, Malan, Tshiqi…

  • Highveld Steel and Vanadium Corporation Ltd v Oosthuizen(103/2008) [2008] ZASCA 164 (01 December 2008)
    Applies

    Applied to determine relevant factors in awarding compensation for procedurally unfair retrenchments under the all or nothing regime.

  • Minister of Home Affairs v LiebenbergCCT 22/01
    Cites

    Cited to describe clear and unequivocal manifestation of an aggrieved party's attitude in response to continued refusal to perform a contract.

Practice This Case

Sign up to practise IRAC analysis, issue spotting, and argument building on this case.

  • The David Trust and Others v Aegis Insurance Company Limited and AnotherCase No: 645/97 (SCA), unreported judgment delivered 31 March 2000
    Applies

    Applied to determine the duties of a mandatary to act faithfully, honestly and with care and diligence, and to account to the principal.

  • Explore More Cases

    More Labour Law cases

    • (1) Isador Husaiwevhu (2) Walter Mutowo (3) Fungai Zinyama v (1) UZ-UCSF Collaborative Research Programme (2) Sheriff of Zimbabwe N.O (3) High Court Registrar N.OJudgment No. SC 86/25, Civil Appeal No. SC 302/25
    • Aaron Mwenje v Intermarket Building SocietySC. 80/05 (Civil Appeal No. 358/04)
    • Aaron Zhomwe v BHP Minerals CompanyS.C. 3/2001 (Civil Appeal No. 25/2000)
    • Abdool Samad Cassim v Richards Bay MineralsD 81/2021
    • Abishai Bonda and Daniel Mahoza v JR Goddard Contracting (Pvt) LtdHB 199/22, HC 1411/20
    • ACCA Zimbabwe v Cuthbert MunhupedziHH 232-21, HC 3522/20
    • Adcorp Workforce Solutions (Pty) Ltd v CCMA and OthersCase no: D 1280/19
    • Adlecraft Investments (Private) Limited v Cassandra Myburgh and Colins BakerHH 538-21, HC 4465/21

    More South Africa cases

    • 3M South Africa (Pty) Ltd v The Commissioner for the South African Revenue Service(272/09) [2010] ZASCA 20 (23 March 2010)
    • 4 Seasons Logistics CC v Kgotse(1215/2023) [2026] ZASCA 09 (04 February 2026)
    • 4 Seasons Logistics CC v Nicholas Ngwanammoto Kgotse(1215/2023) [2026] ZASCA 09 (4 February 2026)
    • 4-Tune Investments (Pty) Ltd v Kingsgate Body CorporateCSOS 4565/WC/22 (Adjudication Order, 29 November 2023)
    • 68 Wolmarans Street Johannesburg (Pty) Ltd and Others v Tufh Limited(1263/2022) [2024] ZASCA 48 (15 April 2024)
    • 9 on Rydal Vale Court Body Corporate v Pan African Holdings Pty LtdCSOS-4563/KZN/23 (Adjudication Order, 8 November 2023)
    • AAA Investments (Proprietary) Limited v The Micro Finance Regulatory Council and Another
    2006 (11) BCLR 1255 (CC) (also reported as CCT 51/05)
  • A A Alloy Foundry (Pty) Limited v Titaco Projects (Pty) LimitedCase No. 309/97