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Article 44/2021

Labour Edge

What are the consequences of disavowal clauses?

With reference to Pikitup Johannesburg (Soc) Ltd v Muguto and Others (2019) 30 SALLR 186 (LC), the following consequences may be identified:

  1. In most instances, such contracts contain the standard clause expressly stating that the employee had no right to renewal or expectation of a renewal (the so-called disavowal clause). It is accepted, on the authority of Mediterranean Woollen Mills (Pty) Ltd v SACTWU (supra), that, despite these clauses, a reasonable expectation could still arise during employment if assurances, existing practices and the conduct of an employer led an employee to believe that there was hope for a renewal, whether on a temporary or an indefinite basis. Even then, these factors are still subject to an objective assessment.
  2. In the end, however, when a renewal or extension is effected, it cannot be said that, on its own, it varies the original terms and conditions of the contract for the purposes of creating or proving a legitimate expectation, unless this is expressly stated when the contract is renewed or extended.
  3. Significant with the facts of this case is that, at some point of the duration of the fixed-term contract, Muguto had been moved to another position as general manager: bulk. Even then, the letter of transfer dated 27 March 2014 had expressly stated that, other than the change in roles and reporting structures, her remuneration and other terms and conditions remained the same.
August 10, 2026

What is the content of traditional consensus to indicate that an agreement exists between an employer and an employee?

If, on the traditional theory of consensus, a party fails to prove an agreement upon which it relies, with reference to Sonap Petroleum SA (Pty) Ltd v Pappadogianis 1992 (3) SA 234 (A), on what basis can a finding be made that quasi-mutual assent exists, founded on the approach that a party is precluded from denying the existence of an agreement based on their own conduct and the circumstances?

What does the three-fold enquiry entail to determine the presence of quasi-mutual assent?

In determining whether an agreement has been reached in the absence of traditional consensus, but on the basis of quasi-mutual assent, what is the extent of the duty on the party wishing to rely on such an agreement to, on the basis of reasonableness, enquire as to the contradictions that exist in the position of the other party so contained in correspondence?

August 3, 2026

Where do delictual claims fit into dispute resolution options applicable to employment disputes?

July 27, 2026

Before the BCEA Amendment Act of 2018 came into operation, if an employee was owed money in terms of a contract of employment, such employee’s only recourse was to utilise s77(3) of the BCEA to institute a claim with the labour court and the high court having concurrent jurisdiction.

In this period, before the BCEA Amendment Act of 2018, if monies were owed to an employee, in terms of a collective agreement, then, if the terms of such collective agreement had been incorporated into an employment contract, the above route was also the only avenue for such an employee.

Previous articles already dealt with some of the implications of s24 of the LRA. The CCMA only has jurisdiction over the interpretation or application of collective agreements and not the enforcement thereof.

What is the effect of the BCEA Amendment Act of 2018 on the dispute-resolution path for monies owed ito the National Minimum Wage Act (NMWA), a contract of employment, sectoral determination, or a collective agreement?