On 9 May 2022, the Labour Court (the "LC") considered whether the conclusion of a service level agreement, as a result of the termination of another service level agreement from a previous service provider, to deliver end-user computing services ("EUC services") triggers section 197 of the Labour Relations Act 66 of 1995 ("LRA").
The urgent proceedings, which sought declaratory relief, were brought by Dimension Data (Pty) Ltd and two other applicants, namely, Vanity Consulting (Pty) Ltd, Yaetsho Solutions (Pty) Ltd (sub-contractors of Dimension Data).
For purposes of this article, Dimension Data and the other two applicants are collectively referred to as ("Didata") .
The purpose of the LC application was to determine whether there was a transfer of business from Didata to the first respondent, namely, GWB Technologies CC t/a GWB Technologies (“GWB”) as contemplated under section 197 of the LRA, in respect of the provision of EUC services to the City of Johannesburg Metropolitan Municipality (the "City").
Background Facts
In 2016, Didata concluded a service level agreement with the City whereby Didata utilised the City’s infrastructural assets, including its Information Technology Service Management ("ITSM") tool, networking and Microsoft software, and the City’s Outlook email addresses and patching tool. The affected employees of Didata, were stationed at the City’s premises and provided services using their own technological devices.
Before Didata became a service...
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