MRL3702 Assignment 1
This assignment analyzes the Quantum Foods case involving contractual bonuses and minimum wage compliance. It reviews legal issues, the court's ruling, and academic opinion based on the National Minimum Wage Act and relevant labour principles.
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SM: 64634639
AN: 755308
DD: 27 March 2025
Phumzile Rachel
Madonsela
MRL3702 ASSIGNMENT
1
In the scenario given above: Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. and
Others (,I A S5/2.022.) [2023] 7.ALAC 27; [?.0?.4] 1 BI I R 32 (T AC); (2024) 45 ILJ 71
(LAC) (18 October 202B
The facts are as follows :
AN: 755308
DD: 27 March 2025
Phumzile Rachel
Madonsela
MRL3702 ASSIGNMENT
1
In the scenario given above: Quantum Foods (Pty) Ltd v Commissioner H Jacobs N.O. and
Others (,I A S5/2.022.) [2023] 7.ALAC 27; [?.0?.4] 1 BI I R 32 (T AC); (2024) 45 ILJ 71
(LAC) (18 October 202B
The facts are as follows :
Every employee at Quantum Food, including union members, signed employment contracts
that stipulated they would be eligible for an annual bonus equal to one month's base pay,
which is determined from January to December and paid in December of each year. Pro rata
bonuses will be given to employees who join the company during the course of a year. The
worker may also choose to get their bonus each month.
Beginning in April 2019, Quantum Foods redesigned payslips to include the monthly pro rata
bonus in the amount of R266.35, as a deferred payment, in addition to a cash payment of R3
462.55. In the past, the bonus would only appear on the payslip when it was disbursed in
December. However, the opposing parties contend that the bonus that Quantum Foods is
contractually required to pay its employees does not fall under that description. It lacks the
"gratuitous" quality and is based on a covenantal obligation rather than the giver's
preference or discretionary generosity. Quantum Foods fded an appeal against the ruling.
It is evident that none of the exceptions listed in subsections 5 (1)(a), (b), or (c) apply to the
provident fund payments made by Quantum Foods on behalf of its workers. As a result,
they have to be taken into account when determining the employees' hourly wage. It is
generally knowledge that Quantum Foods' employee wages would adhere to Act regulations
if the payments were included in workers' hourly rates. As a result, the appeal must be
successful.
The Issue(s) in dispute in the case are as follows:
The legal issue would be weather or not the respondents (COMMISSIONER H JACOBS N.O,
COMMISSION FOR CONCILIATION MEDIATION AND ARBITRATION, and GENERAL WORKERS
UNION OF SOUTH AFRICA obo MEMBERS) had legal grounding to dispute Quantum foods'
contractual obligations to pay their employees a bonus remuneration.
The court's decision reads as follows:
The appeal succeeds with no order as to costs. The order of the court a quo is set aside and
replaced with the following:
□ "The Employer's incorporation of the contractual bonus and the Employer's
provident fund contributions in the calculation of its wage is in compliance with the
provisions of the National Minimum Wage Act, 9 of 2018."
Legal opinion:
This response is provided for academic purposes only and should not be considered as
professional legal advice.
that stipulated they would be eligible for an annual bonus equal to one month's base pay,
which is determined from January to December and paid in December of each year. Pro rata
bonuses will be given to employees who join the company during the course of a year. The
worker may also choose to get their bonus each month.
Beginning in April 2019, Quantum Foods redesigned payslips to include the monthly pro rata
bonus in the amount of R266.35, as a deferred payment, in addition to a cash payment of R3
462.55. In the past, the bonus would only appear on the payslip when it was disbursed in
December. However, the opposing parties contend that the bonus that Quantum Foods is
contractually required to pay its employees does not fall under that description. It lacks the
"gratuitous" quality and is based on a covenantal obligation rather than the giver's
preference or discretionary generosity. Quantum Foods fded an appeal against the ruling.
It is evident that none of the exceptions listed in subsections 5 (1)(a), (b), or (c) apply to the
provident fund payments made by Quantum Foods on behalf of its workers. As a result,
they have to be taken into account when determining the employees' hourly wage. It is
generally knowledge that Quantum Foods' employee wages would adhere to Act regulations
if the payments were included in workers' hourly rates. As a result, the appeal must be
successful.
The Issue(s) in dispute in the case are as follows:
The legal issue would be weather or not the respondents (COMMISSIONER H JACOBS N.O,
COMMISSION FOR CONCILIATION MEDIATION AND ARBITRATION, and GENERAL WORKERS
UNION OF SOUTH AFRICA obo MEMBERS) had legal grounding to dispute Quantum foods'
contractual obligations to pay their employees a bonus remuneration.
The court's decision reads as follows:
The appeal succeeds with no order as to costs. The order of the court a quo is set aside and
replaced with the following:
□ "The Employer's incorporation of the contractual bonus and the Employer's
provident fund contributions in the calculation of its wage is in compliance with the
provisions of the National Minimum Wage Act, 9 of 2018."
Legal opinion:
This response is provided for academic purposes only and should not be considered as
professional legal advice.
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Business Law