Summary of the Document
This judgment was delivered by the Labour Court of South Africa, Gqeberha, under case number PS32/21.
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Judge: Lallie J
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Heard: 23 March 2023
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Delivered: 31 October 2023 (by email, publication on the Labour Court website, and release to SAFLII)
Background
Mr Samson Groom was employed by VEA Road Maintenance and Civils (Pty) Ltd from 16 March 2016. He was dismissed for operational requirements on 17 January 2018.
He challenged the fairness of his dismissal, and on 13 November 2018, the Labour Court found the dismissal unfair and ordered his reinstatement with back pay of R480 000, covering 17 January 2018 to 18 November 2018.
However, instead of reinstating him immediately, the company instructed him not to report for duty while it applied to rescind the order. Its rescission and appeal efforts were all dismissed by mid-2019.
Mr Groom was only reinstated on 7 May 2020, under new terms and conditions.
Key Legal Issues
By agreement, the parties asked the Court to determine:
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Whether the employer had to pay Mr Groom’s salary from 19 November 2018 to 7 May 2020 (the period between reinstatement order and actual return to work).
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Whether his employment contract terminated automatically on 3 December 2018 when he reached the retirement age of 60.
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Whether interest was payable on any amount due.
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Whether costs should be awarded.
Court’s Findings
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Automatic termination:
The Court held that Mr Groom’s employment automatically terminated in December 2018 when he reached the agreed retirement age of 60, as specified in clause 7.6 of his employment contract. -
Validity of the reinstatement:
The Court found that the initial contract had lapsed upon retirement and could not be revived. The new contract signed on 7 May 2020 created a fresh employment relationship, not a continuation of the old one. -
Payment entitlement:
The employer conceded it owed salary from 19 November 2018 to 31 December 2018 (the date of automatic termination). The Court confirmed this obligation. -
Interest:
Mr Groom was entitled to mora interest (interest due on late payment) at the prescribed rate of 7.75% per annum, running from 3 June 2020 until final payment. -
Costs:
Since both parties were partly successful, no order as to costs was made.
Final Order
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The applicant’s contract of employment terminated automatically in December 2018.
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The respondent must pay remuneration due for 19 November 2018 to 31 December 2018.
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The respondent must pay mora interest at 7.75% per annum on that amount, from 3 June 2020 until final payment.
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No order as to costs.
Key Takeaway
This case reinforces that a reinstatement order cannot revive a contract that has already lapsed by operation of law—for example, upon reaching a contractually fixed retirement age. Once such a contract has ended, any later return to employment constitutes a new agreement, not a continuation of the old one. Employers remain liable only for remuneration up to the termination date, plus interest where applicable.