The Labour Court of South Africa in Cape Town has ruled that a former employee may proceed with enforcing a R3.19 million compensation award against RCL Foods, despite the company’s attempt to challenge the decision at the Labour Appeal Court of South Africa.
Acting Judge Coen De Kock ruled in favour of former maintenance fitter Etienne Jordaan, finding that exceptional circumstances justified allowing the enforcement of the award while the employer’s appeal process continues.
13-Year Legal Dispute
Jordaan previously worked at a processing plant operated by the company, then known as Rainbow Farms, in Worcester, Western Cape. He was dismissed in January 2013 after being accused of dishonesty related to alleged clocking offences.
Later that year, the Commission for Conciliation, Mediation and Arbitration ruled that the dismissal was unfair and ordered his reinstatement with back pay of more than R120,000, based on a monthly salary of about R20,000.
However, the company did not reinstate him immediately and instead launched court proceedings to review the ruling, obtaining a stay of execution that delayed enforcement.
The Labour Court dismissed the review in 2018, but the dispute continued through additional legal processes and arbitration over how Jordaan’s back pay should be calculated.
R3.19 Million Award
Jordaan was eventually reinstated in April 2020, seven years after the original ruling. The calculation of back pay for the period between 2013 and 2020 was later referred to private arbitration.
In February 2025, arbitration proceedings concluded with an award ordering RCL Foods to pay Jordaan more than R3.1 million, including interest and costs.
The company attempted to challenge the award through another review application, but the Labour Court dismissed the review in September 2025 and later refused leave to appeal in February 2026.
Court Finds Exceptional Circumstances
The employer subsequently petitioned the Labour Appeal Court for leave to appeal, which automatically suspended the judgment.
Jordaan then applied to have the ruling enforced despite the pending appeal.
Judge De Kock found that the long running legal battle and repeated unsuccessful challenges by the employer created exceptional circumstances that justified enforcement of the award under the Superior Courts Act.
The court noted that the prolonged litigation had left Jordaan financially strained, with legal costs reportedly reaching about R2.5 million. He had also exhausted his pension savings and sold personal assets during the dispute.
Property To Serve As Security
The company raised concerns that Jordaan now lives in Ireland, which could make it difficult to recover the money if the appeal later succeeded.
To address this, the court ordered that Jordaan and his wife may not sell or further mortgage their jointly owned property in Worcester while the appeal process continues.
The ruling allows Jordaan to proceed with enforcing the award while the petition for leave to appeal remains pending. The court also ordered RCL Foods to pay the costs of the application.
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