ANDRE-JOHN TRUTER
MRL3702: LABOUR LAW
ASSIGNMENT 1 SEMESTER 1 2018
ASSIGNMENT CODE: 823287
STUDENT NUMBER: 62424041
QUESTION 1:
Summary of facts:
The First Respondent, Mr Myeni, joined the Universal Church of the Kingdom
of God (herein after referred to as “the Church”) in 1993 and, by attending an
interview and 6 months of training, became ordained as an assistant pastor in
2004.
In order to be to continue in his role as an assistant pastor, Mr Myeni signed
two documents entitled “Regulations for Pastors” and “Declaration of
Voluntary Service”, both of which expressly state the manner in which Mr
Myeni must conduct himself in his position as assistant pastor and that he is
not an employee of the church but rather offers his services to the Church
voluntarily. Furthermore, both signed documents contain clauses which state
that any money received from the Church, whether regularly or irregularly,
must not be construed to be a salary to which he is entitled, but as a
gift/donation related to subsistence requirements of the individual.
Mr Myeni was paid a stipend of R7500.00 per month by the Church, as well
as provided with accommodation to the value of R4500.00 per month.
Deductions for Income Tax and Unemployment Insurance Fund were made
from the amount paid to Mr Myeni.
Mr Myeni was dismissed from the Church on 18 December 2011, without
being afforded a hearing, on the basis of alleged misconduct.
The matter was taken to the Commission for Conciliation, Mediation and
Arbitration (“CCMA”). The CCMA found that Mr Myeni was unfairly dismissed
This study source was downloaded by 100000816532462 from CourseHero.com on 02-24-2022 02:27:30 GMT -06:00
https://www.coursehero.com/file/35578654/ASSIGNEMNT-1-S1-2018-LABOUR-LAWpdf/
, and ordered compensation and other ancillary relief. The matter was taken to
the Labour Court on review, which also found that Mr Myeni was unfairly
dismissed based on the fact that the Church did not rebut section 200A of the
Labour Relations Act (“LRA”). The Church then brought the matter on appeal
to The Labour Appeal Court.
Legal Question:
In the court a quo: Is a pastor an employee of the Church in terms of the LRA,
specifically section 213 read together with section 200A of the LRA.
On Appeal: Does section 200A of the LRA, on which the court a quo and the
CCMA relied, find application in the present circumstances.
Conclusion of the Labour Appeal Court: The Court acknowledged there were
some of the factors listed in section 200A of the LRA present however it also
confirmed that the presumption of employment is only applicable if there exists a
legally enforceable employment contract between the parties. The Court, in this
instance, focussed on the interpretation of “regardless of the form of the contract”
in section 200A of the LRA (Act 66 of 1995) in order to determine whether an
employment contract had been concluded between the Church and Mr Myeni. It
came to the conclusion that the intention of the parties was never to enter into a
legally enforceable employment agreement and that the money received by Mr
Myeni was a subsistence allowance rather than a salary. Accordingly the Appeal
was upheld and it was found that the CCMA did not have jurisdiction to hear the
matter as Mr Myeni was not an employee as defined in the LRA.
Discussion of the applicable Labour Law Principles: The Court depended on
the intention of the Church when Mr Myeni signed the documents to determine
whether an enforceable agreement had been concluded between the parties.
Unfortunately, it’s reliance on this principle may very well allow non-commercial
organisations and individuals to escape standard employment obligations by
structuring future contracts in a manner which allows them to rely on the denial of
the intention when concluding employment agreements. Furthermore, the Court
failed to take into account the fact that the documents relied on by the Church
stated that neither Mr Myeni nor his wife could have any other form of
This study source was downloaded by 100000816532462 from CourseHero.com on 02-24-2022 02:27:30 GMT -06:00
https://www.coursehero.com/file/35578654/ASSIGNEMNT-1-S1-2018-LABOUR-LAWpdf/
MRL3702: LABOUR LAW
ASSIGNMENT 1 SEMESTER 1 2018
ASSIGNMENT CODE: 823287
STUDENT NUMBER: 62424041
QUESTION 1:
Summary of facts:
The First Respondent, Mr Myeni, joined the Universal Church of the Kingdom
of God (herein after referred to as “the Church”) in 1993 and, by attending an
interview and 6 months of training, became ordained as an assistant pastor in
2004.
In order to be to continue in his role as an assistant pastor, Mr Myeni signed
two documents entitled “Regulations for Pastors” and “Declaration of
Voluntary Service”, both of which expressly state the manner in which Mr
Myeni must conduct himself in his position as assistant pastor and that he is
not an employee of the church but rather offers his services to the Church
voluntarily. Furthermore, both signed documents contain clauses which state
that any money received from the Church, whether regularly or irregularly,
must not be construed to be a salary to which he is entitled, but as a
gift/donation related to subsistence requirements of the individual.
Mr Myeni was paid a stipend of R7500.00 per month by the Church, as well
as provided with accommodation to the value of R4500.00 per month.
Deductions for Income Tax and Unemployment Insurance Fund were made
from the amount paid to Mr Myeni.
Mr Myeni was dismissed from the Church on 18 December 2011, without
being afforded a hearing, on the basis of alleged misconduct.
The matter was taken to the Commission for Conciliation, Mediation and
Arbitration (“CCMA”). The CCMA found that Mr Myeni was unfairly dismissed
This study source was downloaded by 100000816532462 from CourseHero.com on 02-24-2022 02:27:30 GMT -06:00
https://www.coursehero.com/file/35578654/ASSIGNEMNT-1-S1-2018-LABOUR-LAWpdf/
, and ordered compensation and other ancillary relief. The matter was taken to
the Labour Court on review, which also found that Mr Myeni was unfairly
dismissed based on the fact that the Church did not rebut section 200A of the
Labour Relations Act (“LRA”). The Church then brought the matter on appeal
to The Labour Appeal Court.
Legal Question:
In the court a quo: Is a pastor an employee of the Church in terms of the LRA,
specifically section 213 read together with section 200A of the LRA.
On Appeal: Does section 200A of the LRA, on which the court a quo and the
CCMA relied, find application in the present circumstances.
Conclusion of the Labour Appeal Court: The Court acknowledged there were
some of the factors listed in section 200A of the LRA present however it also
confirmed that the presumption of employment is only applicable if there exists a
legally enforceable employment contract between the parties. The Court, in this
instance, focussed on the interpretation of “regardless of the form of the contract”
in section 200A of the LRA (Act 66 of 1995) in order to determine whether an
employment contract had been concluded between the Church and Mr Myeni. It
came to the conclusion that the intention of the parties was never to enter into a
legally enforceable employment agreement and that the money received by Mr
Myeni was a subsistence allowance rather than a salary. Accordingly the Appeal
was upheld and it was found that the CCMA did not have jurisdiction to hear the
matter as Mr Myeni was not an employee as defined in the LRA.
Discussion of the applicable Labour Law Principles: The Court depended on
the intention of the Church when Mr Myeni signed the documents to determine
whether an enforceable agreement had been concluded between the parties.
Unfortunately, it’s reliance on this principle may very well allow non-commercial
organisations and individuals to escape standard employment obligations by
structuring future contracts in a manner which allows them to rely on the denial of
the intention when concluding employment agreements. Furthermore, the Court
failed to take into account the fact that the documents relied on by the Church
stated that neither Mr Myeni nor his wife could have any other form of
This study source was downloaded by 100000816532462 from CourseHero.com on 02-24-2022 02:27:30 GMT -06:00
https://www.coursehero.com/file/35578654/ASSIGNEMNT-1-S1-2018-LABOUR-LAWpdf/
