LEGAL PRINCIPLE: LABOUR LAW — Master and Servant — Binding Effect of Collective Agreement
PRINCIPLE STATEMENT
Parties are bound by the collective agreement that was pleaded and tendered in evidence; the issue is whether the dismissal is in keeping with the contract between them.
RATIO DECIDENDI (SOURCE)
"The parties are bound by the agreement i.e. the collective agreement which were both pleaded and tendered in evidence as Exhibits 'W', 'Y' and 'C'. The issue to be resolved is strictly whether the summary dismissal of the appellant is in keeping with the contract between them."
EXPLANATION / SCOPE
A collective agreement between an employer and a trade union is binding on the parties if properly pleaded and tendered. The court will enforce its terms. The issue in a wrongful dismissal claim is whether the dismissal complied with the contract, including any collective agreement incorporated into the contract. The parties cannot rely on terms outside the agreement. The principle recognises collective agreements as part of the employment contract. The court will interpret the agreement according to its terms. The employee may enforce rights under the agreement. The employer must follow the disciplinary procedures in the agreement. The rule applies to unionised workplaces. The agreement is admissible as evidence of the terms of employment.