The Constitutional Court gave a ruling in the matter involving former Claytile workers and the company.
According to reports, Claytile retrenched its workers and issued eviction notices to vacate the company's housing, which the workers refused to do.
The workers later approached the Constitutional Court to rule on the matter.
ConCourt ruled on Thursday that it's the City's responsibility to find alternative housing for workers evicted from privately-owned land.
EWN reporter Monique Mortlock says throughout court proceedings, the City of Cape Town offered Wolwerivier as the only option for an emergency housing, saying they couldn't provide alternative housing due to a long waiting list.
The workers are saying, but we have been staying in big houses all these years and now we have to move to two bedroom corrugated iron structures, no we don't want to go there.— Monique Mortlock, EWN reporter
The court ruled in favour of Claytile saying the have 90 days to vacate the premises.— Monique Mortlock, EWN reporter
This court battle has been going on for the past five years, according to Mortlock. The workers have no choice but to move in the next 90 days, she says.
To hear more of this report by Monique Mortlock, listen below: