Nkomo & ORS v Rubber and allied products (PVT) Ltd & Anor 2002 ZLR 428 (S)

Mr LT Biti for the appellants – labour law employment contract. The appellants were employed by the first respondent, which decided to sell its assets and business to another company. As the other company would not be able to absorb all the first respondents employees, notice of retrenchment was given to them by the first respondent. Three days later the first respondents assets and business were sold to the other company. the appellants objects to the proposed retrenchment and the normal processes were followed under the labour legislation to deal with their objection. The first respondent told the appellant that they were to take paid leave for the duration of any accumulated leave and thereafter go on unpaid leave until the matters was finalised. An application to the high court by the appellants to compel the fist respondent today salaries and benefits failed on the ground that the parties shovel have complied with a determination by a labour relations office to continue negotiate or let the retrenchment committee determine the matter. the appellants appealed:

held, that the application was misconceived. When the first respondent’s assets were transferred, the appellants became employees of the other company. The notice of retrenchment by the first respondent fell away at that time. If the new employer wish ed to retrench the appellants, it should have given notice in terms of the relevant regulations. Any obligation to pay salaries and benefits had also become that of the new employer, and relief should have been sought against the other company.