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⭐CIVIL LIABILITY OF AN EMPLOYER FOR INJURIES ON DUTY
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1 CIVIL LIABILITY OF AN EMPLOYER FOR INJURIES ON DUTY by DENVER CHARLES BRANDT Submitted in partial fulfilment of the requirements for the degree of MAGISTER LEGUM (LABOUR LAW) in the Faculty of Law at the Nelson Mandela Metropolitan University Supervisor: Professor JA van der Walt January 20092 DECLARATION I declare that the thesis, which I hereby submit for the degree Magister Legum at the Nelson Mandela Metropolitan University, is my own work and has not previously been submitted by me for a degree at another University. DENVER CHARLES BRANDT3 ACKNOWLEDGMENTS I wish to express my deepest gratitude and appreciation towards: 1. My promoter, Professor JA VAN DER WALT for his continued patience and assistance throughout the time of this research. 2. Mr W VAN RENSBURG at Wikus van Rensburg Attorneys who by granting me a bursary and study leave made the research in this thesis possible. 3. Ms A VAN DER MERWE for her support and inspiration throughout this adventure. Thank you. 4. My family for their love, support and tolerance. This thesis is dedicated to my parents. 5. To God Almighty, through whose grace and blessing I have been able to start and complete this research in good health.4 TABLE OF CONTENTS Page SUMMARY... ii CHAPTER 1: INTRODUCTION... 1 CHAPTER 2: SOURCES AND STANDARDS... 5 CHAPTER 3: THE OCCUPATIONAL HEALTH AND SAFETY ACT 85 OF Purpose of the Occupational Health and Safety Act Scope and application of the Occupational Health and Safety Act Duties in terms of the OHSA and regulations Consequences of breach of a statutory duty Criminal liability Civil liability Injury on duty 12 CHAPTER 4: COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT 13 OF CHAPTER 5: SCOPE AND APPLICATION OF COIDA The importance of drawing a distinction between employees, third parties and employees of labour brokers Different forms of triangular employment relationships The importance of statutory definitions of employees The Labour Relations Act 66 of The Basic Conditions of Employment Act 75 of The Occupational Health and Safety Act 83 of Compensation for Occupational Injuries and Diseases Act 130 0f Crown Chickens (Pty) Ltd t/a Rocklands Poultry v Rieck 2007 (2) SA CHAPTER 6: THE CURRENT APPLICATION OF S 35 OF COIDA IN CASE LAW IN SOUTH AFRICA CHAPTER 7: THE DEBATE AS TO WHETHER OR NOT S 35 OF COIDA IS CONSISTENT WITH THE CONSTITUTION CHAPTER 8: INDEMNITY CLAUSES. 42 CHAPTER 9: CONCLUSION BIBLIOGRAPHY TABLE OF STATUTES TABLE OF CASES i5 SUMMARY The workplace has evolved dramatically in the past decades. Technology has improved, innovative ways of utilising nuclear power have been developed, new chemicals have been introduced to the market and the adverse effects of other chemicals on both human health and safety and the environment have been discovered. This has influenced the nature of the workplace itself. While employees enjoy a common law right to a safe working environment and health and safety, state intervention currently provides restricted claims to an employee who has sustained injuries or contracted occupational diseases. This thesis explores the effect of section 35 of the Compensation for Occupational Injuries and Diseases Act 130 of 1993 which deprives an employee of its common law right to institute civil action against an employer for an injury sustained or disease contracted during the course and scope of employment. Furthermore, this thesis also explores the marriage between the Occupational Health and Safety Act 89 of 1993 and the Compensation for Occupational Injuries and Diseases Act 130 of 1993 as well as the position of employee and employer insofar as the scope and application of these two acts are concerned with specific reference to the position of labour broker employees. The use of indemnity clauses and its validity in South Africa will also be explored and discussed. This thesis also dedicates a chapter to the leading case authority of Jooste v Score Supermarket Trading (Pty) Ltd and its effect insofar as the enforcement and application of section 35 of the Compensation for Occupational Injuries and Diseases Act 130 of 1993 is concerned. It is impossible to mention all the changes in the workplace that have occurred in the recent years, and this discussion therefore focuses on the current position of employees who have ii6 been deprived of their common law right to institute delictual action for damages resulting from an injury sustained while on duty as well as the impact of the current restrictive claims available to them. Alterations to existing approaches are also proposed to resurrect the common law right of employees to institute action against their employers. iii7 CHAPTER 1 INTRODUCTION Where an employee suffers an injury on duty or contracts a occupational disease the common law provides that he 1 institute delictual action against his employer for compensation. The employee will have to prove intent or negligence on the part of his employer, or on the part of a co-employee, were the employer to be held vicariously liable in order to be successful. Employees enjoy a common law right to safe working environments and health and safety arrangements which provide replacement income for persons affected by a loss of ability to earn as a result of an occupational injury or disease. There are various sources which regulate occupational injuries and diseases. The International Labour Organisation (hereinafter referred to as the ILO ) has a number of conventions concerning employment injuries and diseases. 2 In South Africa, a constitutional imperative regarding social security exists. Collective agreements can also contain arrangements relevant to social security and health and safety at the workplace. The primary legislation in South Africa which provides for preventative measures are the Occupational Health and Safety Act 3 (hereinafter referred to as OHSA ) and the Mine Health and Safety Act 4 (hereinafter referred to as MHSA ) while the most important legislation that regulate compensation for employees injuries and diseases (and even death) suffered and contracted at work is the Compensation for Occupational Injuries and Diseases Act 5 (hereinafter referred to as COIDA ). There are also the Occupational Diseases in Mines and Works Act 6 which provides for mandatory reporting and the payment of certain benefits to mine workers who develop certain occupational lung diseases, as well as the payment of certain benefits for dependants of workers who die from such diseases. The Road Accident Fund Act 7 (hereinafter referred to as RAF ) is applicable where an employee is injured while Note: Reference to the male gender includes reference to the female gender and vice versa. They include Convention No 102 Minimum Standards of Social Security 1952; Convention No 121 Benefits in the Case of employment Injury of of of of of8 being conveyed by a motor vehicle in the course of his employment. In cases of commuting injuries COIDA and the RAF Act must be read together. For purposes of this paper however the discussion will be confined to COIDA and OHSA. It is common that in most social security systems that even where a completely unified scheme for disability exists, a separate and more favourable scheme for industrial injuries is often retained. Occupational injury and disease benefits are not simply granted or allocated; they are bought through insurance contributions. Employees make available their labour to the employer who benefits from it financially. It is therefore accepted that the responsibility of financing such an insurance scheme rests with employers. In return, a statutory provision, such as section 35 of COIDA, replaces an employer s delictual liability towards the employee with insurance cover. The Compensation Fund established in terms of COIDA requires employers to contribute to a centralized state fund. Subject to certain exceptions (and exempted employers) all employers in South Africa must register and pay assessments to the Fund. COIDA provides a system of no-fault compensation for employees who are injured in accidents during the course and scope of their employment and who contract occupational diseases. However, negligence continues to play a role since an employee is entitled to additional compensation if he can establish that the injury or disease was caused by the negligence of the employer or certain managers and/or fellow employees. In Jooste v Score Supermarket Trading (Pty) Ltd (which will be discussed in detail later) the Constitutional Court held that COIDA is important social legislation and the court accepted that the bar on civil claims by section 35 8 is rationally connected to COIDA s purpose of providing no-fault compensation to employees from a fund to which employers are required to contribute. Whether or not this approach is in fact rational, reasonable and/or justifiable will be discussed herein below of9 COIDA provides for benefits to be paid to employees who suffer a temporary disablement, employees who are permanently disabled and to dependants of employees who die as a result of injuries from accidents while at work or as a result of an occupational disease. The act also provides for the payment of medical aid received by such employees. The Labour Relations Act 9 (hereinafter referred to as the LRA ) provides that no employee may be dismissed unfairly. This requires that all dismissals should be procedurally and substantively fair to avoid an order for the re-instatement, re-employment or compensation in favour of the dismissed employee. People with disabilities are included in the definition of the designated groups of the Employment Equity Act. 10 Disabled employees are thus protected against any form of unfair discrimination in South African workplaces and designated employers are compelled to give preference to people with disabilities. Investigations into the social security system of South Africa revealed that no comprehensive strategy has yet been developed to incorporate prevention as part of the overall system of employment injury and diseases process. Generally risks are concentrated in four (4) industries: i) transport; ii) iii) iv) mining; agriculture; and construction. 11 Incapacity for work is usually conceived as the loss of the ability to earn and is classified under social insurance. Most social security schemes will, therefore, try and provide an income replacement for those persons affected by loss of the ability to earn. There are two (2) causes for such a loss of the ability to earn: of of Loewnson Paper presented to the ILO Expert Consultation Committee on the Health impact of Occupational Risk in Africa (July 1997) 1. 310 i) the loss of the possibility to work (unemployment); ii) loss of the ability to work as a result of illness, injury, invalidity or old age; 12 The loss of the ability to work is a central integrating factor for individuals in a modern society that threatens the social exclusion of such individuals and their families. The risk of occupational injuries and diseases should thus be addressed by: i) prevention; ii) rehabilitation; and iii) compensation. I will now briefly deal with the various sources and standards which regulate occupational injuries and diseases in South Africa. 12 Greiner, D. Urbani, R. De Pauw, R. Sorensen, Q.B. Michaelis, K. Saltman, R.B. Dumont, J.P. Spitznagel, E. and Knight, M. Autonomous and self-administered insurance against employment accidents and occupational diseases; an expanded and integrated model of social protection (The Bureau of the Permanent Committee on insurance against employment accidents and occupational diseases (1998) 1. 411 CHAPTER 2 SOURCES AND STANDARDS There are several national and various other sources regulating occupational injuries and diseases. As mentioned previously the ILO has various conventions concerning employment injuries which include occupational injuries and diseases. While in South Africa a constitutional imperative in relation to social security exists. 13 While mentioned previously, collective agreements also contain arrangements relevant to security and health and safety at work. 14 The most important legislation in South Africa that provide for preventative safety measures in the workplace are: i) OHSA; ii) MHSA, while the most important legislation in South Africa insofar as the regulation of compensation of employees for work related illness, injury and death is COIDA. As mentioned previously, the employer has a common law duty to assess the workplace in order to provide a safe working environment. 15 During the early 1990 s in South Africa OHSA replaced the Machinery and Occupational Safety Act (hereinafter referred to as MOSA ). 16 The Department of Labour is responsible for the administration of this act with OHSA setting out the duties of employers and employees respectively and also makes provisions for a number of offences if the Act is contravened. 17 The LRA also provides for workplace forums to play an important role in health and safety issues in the workplace. 18 Such a workplace forum can, in terms of S 84 of the Act, be S 27 of the Constitution of the Republic of South Africa Act 108 of For the legal effect of collective agreements in South Africa see ss 23, 31 and 32 of the Labour Relations Act 66 of See Van Zyl v Workmen s Compensation Commissioner 1995 (1) SA 708 (N), Skinner v Minister of Pubic Works 1998 JOL 4223 (SE). In the European Community, see chapter 2 and 3 of the European Treaty and article 118A of the Single European Act of 1986 that are devoted to health and safety. See also Directive No. 80/836 of 15 July 1980 regarding basic safety standards for the health protection of the general public and workers against the dangers of ionising radiation. 6 of S 38(1). S 84(5). 512 consulted regarding the initiation, the review or developing of health and safety matters. 19 The workplace forum 20 is also involved in the establishment of health and safety committees 21 and is entitled to the appointment of one or more members of the forum as health and safety representative in the workplace. 22 As mentioned hereinbefore, the focus will remain on OHSA and COIDA. I will now analyze the origins, scope and purpose of OHSA Although health and safety measures are not expressly listed as specific matters for consultation in s 84, a representative trade union and an employer may conclude a collective agreement conferring on the workplace forum the right to be consulted about any additional matters in that workplace. See s 84(3) and (5). S 84(5)(a). S 84(5)(b). S 84(5)(c). 613 CHAPTER 3 THE OCCUPATIONAL HEALTH AND SAFETY ACT 85 OF 1993 Change in South Africa from the MOSA to OHSA was motivated to co-ordinate our approach with international standards and approaches in so far as occupational health and safety in the workplace is concerned. Certain changes provided for, amongst others more emphasis on the regulation of occupational health and hygiene, the encouragement and endorsement of an active approach to the elimination or mitigation of hazards, the direction of employers to share information with its workforce regarding hazards in the workplace and to provide training to the workforce on the nature of the hazards, the effects of the hazards, appropriate precautions, the maintenance of those precautions and emergency procedures. It also provided for greater trade union participation in the election of health and safety representatives and enhanced rights and functions for health and safety representatives and committee members. It revised the general duties of employees with regard to health and safety and recognizes and makes provisions for the protection of the public from safety and health hazards emanating from the workplace. Finally it increased penalties that a court can impose for breaches of the Act. 3.1 PURPOSE OF THE OCCUPATIONAL HEALTH AND SAFETY ACT The Act is designed to create an environment of participation between an employer and its workforce, which participation is aimed at the prevention of unhealthy and unsafe working environments. While the employer is seized with the majority of obligations pertaining to health and safety, employees, health and safety representatives and health and safety committees and the members of those committees are obligated to commit to health and safety within the workplace. The Department of Labour inspectors police the provisions of the OHSA and its regulations. 714 It may be worth mentioning that the inspectorate adopts a regulatory approach and an antagonistic approach. However, it may be selective in relation to the institution of prosecution proceedings where a particular employer and/or employee or any party for that matter displays a degree of defiance and/or gross negligence with regard to any duty in terms of the Act that may have been breached. OHSA is consistent with the constitutional imperative that each person is entitled to fair labour practices and to an environment which is not detrimental to that person s health or wellbeing. 3.2 SCOPE AND APPLICATION OF THE OHSA OHSA covers all areas of employment activity and the use of machinery except those specifically excluded from the Act. 23 Unlike the LRA 24 provisions of OHSA also apply to: it is not confined to an employment relationship. In this regard, the i) self employed persons; ii) persons engaged in the manufacture, production or sale of machinery; iii) persons involved in the manufacture, production, sale and/or transport of substances used in the workplace. In any event, employers are required to ensure the health and safety, not only of their employees, but of all persons who may be directly affected by their activities S 3(a) and (b). Act 66 of15 Section 9 of OHSA is a specific direction to an employer in this regard. It is also not only confined to people who may find themselves on the premises of the employer (this will also be discussed in more detail in paragraph 5.2.3). The definition of employee is so wide that it would in essence cover independent contractors, their employees, employees of labour brokers, consultants and/or visitors or other parties to a workplace (again this will be discussed in more detail herein below). In any event, section 9 would close the gap and without doubt places an obligation, in general terms, upon an employer to take reasonable care for any third parties who may be affected by its operations. The case of Serfontein v Spoornet 25 illustrates how liability towards third parties works and what influence the OHSA can have on such liability. In this case a 16-year-old boy climbed onto the roof of a railway truck, and sustained an electric shock from an overhead power line. According to the evidence before the court there was no warning sign near the ladder on the truck. The elements that must be proved to succeed with a common law claim for damages are: 1) an act or omission; 2) wrongfulness; 3) negligence; 4) causation; and 5) harm. 3.3 DUTIES IN TERMS OF THE OHSA AND REGULATIONS OHSA contains general duties 26 as to the standards of safety an employer should maintain and also contains specific duties. These general and specific duties are designed to prevent accidents. Specific duties prohibit certain activities and on the other hand direct that certain steps be taken in relation to occupational health and safety. Examples are: [1999] All SA 217. S 8 of Act 85 of16 i) plant machinery and equipment must comply with certain specifications; ii) use of safety devices are required; iii) use of protective equipment is required; iv) use of lockout procedures are required; v) biological monitoring is required; vi) standards for light, noise and temperature is required; vii) reasonable exposure to hazardous substances in those circumstances where it is not reasonably practicable to eliminate the substance either by engineering a different process or utilizing a different substance. There are regulated occupational exposure limits. The standard of care is a common law duty of reasonably care. This will however be discussed in more detail in paragraph herein below. In relation to the steps that a reasonable employer should have taken to avoid an accident, same requires an analysis and balancing of a number of factors: i) the seriousness of the harm; ii) the chances of it happening; iii) the degree of risk involved in taking the necessary precautions; iv) the cost of taking precautions; v) the difficulty of taking precautions. In essence, the greater the seriousness of the potential harm or the greater the probability of its occurrence, the greater will be the necessity for taking safety precautions. The balancing process is a process that must be engaged upon at a point of time anterior to the accident. 1017 It is important that an employer is proactive in conducting risk assessments and in conducting the balancing process as part of its health and safety programme(s). An employer cannot therefore argue ex post facto (after the fact) that it would not have been reasonable to take the particular precaution. An ex post facto analysis may indicate an inadvertent approach to the proactive requirement in terms of OHSA. In terms of the provisions of OHSA, employers are required to take all steps that are reasonably practicable. This means practicable having regard to: a) the severity and scope of the hazard or risk concerned; b) the state of knowledge reasonably available concerning that hazard or risk and of any means of removing or mitigating that hazard or risk; c) the availability and suitability of means to remove or mitigate that hazard or risk; and d) the cost of removing or mitigating that hazard or risk in relation to the benefits deriving therefrom. The definition of reasonably practicable marries that what has been set out herein before. It must however be noted that the regulations in terms of OHSA, in certain circumstances, stipulates a requirement of practicability as opposed to reasonable practicable. This implies a higher standard. In addition to the above and particularly in relation to protective equipment, same must be suitable for its purpose. This requires a higher standard. 3.4 CONSEQUENCES OF BREACH OF A STATUTORY DUTY CRIMINAL LIABILITY Section 38 penalizes the contravention of certain provisions of OHSA. It makes provision for any person contraventions. Penalties in the form of R fines and/or one year imprisonment is provided for. 1118 Section 38 also makes provision for employer offences in instances where any person has been injured at the workplace or an employee has been injured in the course and scope of his employment at any place. Penalties in the form of R fines and/or two years imprisonment is provided for. Charges of culpable homicide may also be relevant. 27 Section 37 also provides for vicarious liability at a level of criminal penalty. It is therefore possible for an employer to be held criminally liable for the acts/omissions of his employees and/or independent contractors and/or their employees CIVIL LIABILITY A breach of a statutory duty may found and/or bolster an action for damages at civil law, however the following interesting situations arise: INJURY ON DUTY In the event of an employee being injured in the normal course ad scope of events, which injury qualifies as an injury on duty as per the prescripts of COIDA, then such an employee is barred from instituting action against his employer as per the provisions of section 35 of COIDA. This means that in relation to relief sought by the particular employee, that employee is confined to the provisions of COIDA and the relief provided therein. The employee will therefore be entitled to claim certain relief in the event of his injury being classified as an injury on duty. The employee will not be entitled to claim additional damages/compensation from his employer by virtue of the provisions of section 35 of COIDA. All damages are excluded including claims for pain and suffering and loss of amenities of life. This will be discussed and looked at in more detail herein below. It should be mentioned that a lot of employers try and avoid this widened responsibility through admission passes and/or forms containing clauses indemnifying that particular 27 S v Russell 1967 (3) All SA. 1219 employer from any injury, harm or disease sustained by a person who enters the site of that particular employer. The validity, use and application of such indemnity forms/clauses will be discussed in more detail in chapter eight herein below. I will now briefly discuss COIDA. 1320 CHAPTER 4 THE COMPENSATION FOR OCCUPATIONAL INJURIES AND DISEASES ACT 130 OF 1993 COIDA came into effect on 01 March The Act makes a number of significant changes to systems of statutory compensation. However, the retention of the structure of the previous Workmen s Compensation Act (hereinafter referred to as WCA ) 29 as well as some of the previous wording used means that many of the decided cases under the WCA remain relevant. COIDA provides a system of no-fault compensation for employees who are injured in accidents that arise out of and in the course of their employment or who contract occupational diseases. However, negligence continues to play a role since an employee is entitled to additional compensation if he can establish that the injury or disease was caused by negligence of the employer or certain categories of managers and/or fellow employees. The Compensation Fund established by COIDA requires employers to contribute to a centralised state fund. There are, however, two (2) important exceptions: i) the Rand Mutual Assurance Company Limited which operates in the mining industry; and ii) Federal Employer s Mutual Association which operates in the building industry. Apart from the aforementioned and certain exceptions and certain exempted employers in terms of section 1 of the Act, all employers in South Africa must register and pay assessments to the fund. COIDA provides for benefits to be paid to: employees who suffer temporary disablement; Act 130 of COIDA took effect in the former homelands that had worker s compensation laws from 01 March of21 employees who are permanently disabled; and the dependants of employees who die as a result of injuries sustained in accidents at work or as a result of an occupational disease. The Act lists the more common diseases. If an employee contracts a disease that is not listed he must prove that the disease is related to his work in order to receive compensation. 30 Problems with regard to access to medical facilities, the availability of specialists and other restraints regarding resources have led to an under-reporting of occupational diseases. The Act furthermore provides for the payment of medical aid received by disabled employees from the private medical profession at tariff rates. 31 The failure to comply with any of the obligations imposed by the Act amounts to a criminal offence and, in addition, the Commissioner has the power to penalise employers who do not comply with statutory obligations. I will now look at the scope and application of COIDA in South Africa with specific attention being given to the position of labour brokers employees as well as the importance of establishing and defining both employee and employer under various pieces of legislation This is consistently easier than the previous requirement that employees must, in order to receive compensation, prove that the disease was contracted in circumstances amounting to an accident. In 1990 only 128 cases of occupational diseases was compensated (Accident Fund Annual Report (1993) 14). A significant increase in claims for Post Traumatic Stress Disorders, especially from the South African Police Service has also been reported since The major number of occupational diseases is in respect of Noise-Induced Hearing Loss. Expenses for medical treatment of injured workers represented 55% of the Find s expenditure on claims against the Fund (Annual Report (2002) 13). 1522 CHAPTER 5 SCOPE AND APPLICATION OF COIDA 5.1 THE IMPORTANCE OF DRAWING A DISTINCTION BETWEEN EMPLOYEES, THIRD PARTIES AND EMPLOYEES OF LABOUR BROKERS At the 2003 Annual ILO the fifth item on the agenda was entitled The Scope of the Employment Relationship. The conference resolved that the ILO should adopt a recommendation focused on what it termed the disguised employment relationship and on the need for mechanisms to ensure that persons with an employment relationship have access to the protection they are due at national level. It is concluded with the following somewhat cryptic sentence: The issue of triangular employment relationships was not resolved. 32 A triangular employment relationship occurs when employees of an enterprise performs work for a third party to whom their employer provides labour or services. 33 In relation to the aforementioned definition, the designation of the client as the third party is confusing. It suggests a primary relationship between the party providing the service and the worker. However, it is the client who determines what is required. If the client does not want the labour then there is no question of employment. The client therefore determines the relationship and is the dominant party. It is therefore odd to assume that the provider is the employer. On the face of it the identity of both employer and employee is clear and there is no need for talk of a triangular employment relationship at all. As of late one will find or be associated with the concept of externalization, in which business has structured its operations in such a way that labour is engaged through a third party. The benefit of this is that the client does not have to associate itself with risks of being an employer. A delegation of employment so to speak. This means effectively that a business avoids the duties and responsibilities associated with being an employer in an employment relationship Resolution on the Scope of the Employment Relationship 91 st Session of the International Labour Conference. Report V: Scope of the Employment Relationship, 91 st Session of the International Labour Conference. Ad para View more
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