Court’s Interpretation on Labour Relations Act

Read the following extract from Motor Industry Staff Association and Another v Great South Autobody CC t/a Great South Panelbeaters; Solidarity obo Strydom and Others v State Information Technology Agency SOC Limited (2025) 46 ILJ 481 (CC):

“The issue raised for determination in both Landman and Solidarity is the effect on the contractual relationship between an employer and employee when the employee, who has elected not to retire upon reaching the normal or agreed retirement age, is permitted by the employer to work beyond the determined retirement age. Put differently, the question raised on the facts of the two matters is what, in the absence of the parties having reached agreement with regard thereto, is the result of a failure by the employer to terminate the employee’s employment when the latter has reached retirement age. Does the employer without more lose the protection of section 187(2)(b) of the LRA as suggested in the first judgment, or may the employer terminate the employment relationship at any time thereafter as suggested in the third judgment?” (par 137).

Critically examine the Constitutional Court’s interpretations of section 187(2)(b) of the Labour Relations Act as presented in the three judgments. Analyse the competing approaches to age-based dismissals where employees have continued working beyond their agreed retirement age, evaluating the legal reasoning, constitutional considerations, and practical implications of each interpretation. Your answer should engage with principles of employment rights, equality and dignity, and suggest which approach best balances the interests of employers and employees. Refer to all relevant authority, including relevant legislation, case law, international standards and secondary sources.

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Sample Answers on Court’s Interpretation on Labour Relations

An analysis of the given case scenario indicates that there are three judgements given by the Constitutional Court interpreting section 187 (2)(b) of the Labour Relations Act and the main focus of analysis is on interpreting those three judgements in relation to age based dismissals. According to section 187 (2)(b) of the Labour Relations Act, if an employee has reached the normal or agreed retirement age, then the dismissal of the employee is not automatically unfair. However the main area of concern is whether an employer forfeits the protection of this provision if they do not terminate the employment immediately upon employees reaching the age.

Looking at the first judgement, if an employee continuous working after retirement without employee being conducting a new contract, then terminating the employment later cannot automatically fall under the protection of section 187(2)(b). It implies that the employees need to formalise any post retirement work arrangements or they can risk an unfair dismissal claim. This judgement is known for balancing constitutional values with highly practical employment consideration.

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