Synopsis:
Appeal from theLabour Appeal Court (LAC), interpreting s 197 of the Labour Relations Act. Ngcobo J for a unanimous court found that when a statute gives effect to a constitutional right, then the interpretation of that statute raises a constitutional issue. It further found that appeals from the LAC firstly lie with the Supreme Court of Appeal, but in certain circumstances may be heard directly by this Court. It stressed that this Court will be hesitant to hear appeals from the LAC unless they raise issues of principle. The decision found that the primary purpose of s 197 is to protect workers from the loss of employment in the event of a transfer. It further found that upon the transfer of a business, the workers automatically are transferred to the new owner without a prior agreement.
