In a recent judgement, the Labour Court allowed a former employee of RCL Foods Consumer (Pty) Ltd to enforce a compensation award of approximately R3.19 million, despite the employer’s intention to appeal the decision.
The Court found that exceptional circumstances existed to justify execution of the award pending appeal under the Superior Courts Act 10 of 2013. The dispute had spanned for more than 13 years, during which the employee endured significant financial hardship.
The Court held that further delays would unfairly prejudice the employee and therefore permitted the enforcement of the arbitration award while the appeal process continues.
Background
The dispute involved Ettienne Jordaaan, a maintenance fitter employed by RCL Foods Consumer (Pty) Ltd – then known as Rainbow Farms. Jordaan was dismissed in February 2013 for alleged dishonesty in relation to clocking offences.
The dispute was referred to the Commission for Conciliation, Mediation and Arbitration (CCMA), which ruled later in 2013 that the dismissal was unfair. The CCMA ordered Jordaan’s reinstatement with back pay amounting to over R120,000.00, calculated from his monthly salary of approximately R20,000.00.
However, the employer did not reinstate him immediately but subsequently launched review proceedings in the Labour Court, which effectively delayed the enforcement of the CCMA award for several years. This is known as a stay of execution and prevents a Court order from being enforced.
The Labour Court dismissed the review in 2018, but the dispute persisted. The employer pursued further legal processes such as a declaratory application and multiple arbitration proceedings concerning the method in which Jordaan’s back pay should be calculated.
Jordaan was only reinstated in April 2020, approximately seven years after the original arbitration award. The parties referred the matter of the back pay calculation to private arbitration.
The calculation of his back pay for the intervening period was later determined through Arbitration in February 2015, which resulted in a compensation awarded exceeding R3.1 million, plus interest and costs.
The Legal Issue
Following the arbitration award, the employer sought to challenge the award through a review application in the Labour Court. This review was dismissed in September 2025. In addition, in February 2026, the court refused the employer leave to appeal.
Consequently, the employer filed a petition for leave to appeal to the Labour Appeal Court. Ordinarily, the noting of an appeal suspends the execution of the judgment. Jordaan therefore approached the Labour Court seeking an order allowing the award to be enforced pending the outcome of the appeal.
The application was brought under section 18 of the Superior Courts Act of 2013, which allows a court to order the enforcement of a judgement during an appeal only in exceptional circumstances.
The Judgment
In Jordaan v RCL Foods Consumer (Pty) Ltd (2026/046067) ZALCCT 45 (13 March 2026) at para 50, the Labour Court of South Africa held that exceptional circumstances existed to justify execution of the award pending appeal.
The Court considered several key factors:
- The dispute had persisted for over 13 years, largely due to extensive litigation.
- Jordaan had suffered severe financial hardship, including spending substantial amounts on legal fees and exhausting personal financial resources; and
- Further delays in enforcing the award would effectively deny the employee the benefit of the judgment.
The Court noted at para 17 that Jordaan had spent about R2.5 million on legal costs, exhausted his pension fund, sold his car and had his wife surrender her insurance policy. As a result, the Court granted an order allowing the R3.1 million award to be enforced immediately, notwithstanding the pending appeal.
However, to safeguard the employer’s interests, should the appeal succeed, the Court imposed a security condition requiring Jordaan and his wife not to sell or mortgage their immovable property in Worcester while the appeal process continues.
RCL Foods Consumer (Pty) Ltd was also ordered to pay the costs of the application.
Key Takeaways
The judgment highlights several important principles in labour litigation:
- Courts may permit execution of judgments pending appeal in exceptional circumstances.
- Prolonged litigation and financial prejudice may justify such relief.
- Employees who delay the implementation of arbitration award through extensive litigation risk significant financial liability, [particularly where back pay accumulates over time.
This judgment demonstrates the Labour Court’s willingness to permit the enforcement of awards in exceptional circumstances, particularly where prolonged litigation has caused significant prejudice to an employee. It serves as a reminder that delays in resolving labour disputes may result in substantial financial consequences for employers.
A copy of the judgment can be found here:
