The court has ruled in favour of a domestic worker after the Road Accident Fund (RAF) refused to compensate her, citing her failure to produce payslips as proof of employment.
Marta Buda, 54, who worked in the informal sector, was injured in a motor vehicle accident in March 2018 that left her unable to continue working. The fund rejected her claim of future loss of earnings, arguing that she could not prove her income without formal documentation.
However, the Mbombela high court court recognised the realities of informal employment, where many workers are paid in cash and do not receive payslips.
According to Judge AJ Nsibande, the central issue before the court was whether Buda was entitled to compensation for future loss of earnings as a result of the accident.
“The defendant [RAF] is liable to pay the plaintiff’s future loss of earnings in the amount of R330,020.00,” ruled Nsibande.
The court recognised that many workers in the informal sector do not receive payslips and should not be excluded from compensation on that basis alone.
According to Nsibande, the central issue before the court was whether the plaintiff was entitled to compensation for future loss of earnings resulting from the accident.
The plaintiff argued that she had been employed as a domestic worker, initially paid in cash and later via bank transfers, before losing her job due to injuries sustained in the accident.
She maintained that she is now unemployable and should be compensated for a total loss of earning capacity.
“The plaintiff argued for compensation for a total future loss of earning capacity … as she was rendered totally unemployable,” the judgment reads.
The RAF, however, contended that she was only entitled to partial compensation, citing other medical conditions that existed before and after the accident.
“The defendant argued for a partial loss of future earnings … taking into consideration other proven medical deficiencies that pre-date and post-date the accident.”
A psychologist, on behalf of Buda, argued that Buda was 45 years old and unemployed at the time of the accident and that, had it not been for the accident, she would have mostly probably found employment within two years and been earning the minimum wages for South African domestic workers.
The court ultimately sided with the plaintiff, affirming that the absence of formal documentation such as payslips does not invalidate claims from workers in the informal sector.
The court accepted that domestic work was sometimes fluid, and workers often changed employers due to abuse, and a worker might not have further contact with their employer.
The judgment said, in the interest of justice, the court must come to the assistance of vulnerable groups in society, and it would not hesitate to do so.
Sowetan
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