LA Health Medical Scheme v Horn (385/13) [2014] ZASCA 72; [2014] 3 All SA 421 (SCA) (29 May 2014) per Wallis JA (Navsa, Maya, Saldulker JJA and Mathopo AJA concurring).

The Supreme Court of Appeal allowed the appeal.  It was decided that the Cape Joint Retirement Fund was established for local authorities and did not make LA Health an employer as it was not a local authority.  Membership of the Fund was anomalous and redundancy or retrenchment benefits were negotiated by local authorities in a collective bargaining forum.  But the Fund was not a party to those negotiations and did not agree to provide those benefits.  Even though the rules of the Fund incorporated those benefits they only applied to local authorities. The employees of LA Health were not entitled to claim a redundancy or retrenchment benefit under the Fund’s rules when LA Health and its employees were transferred to Discovery.