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Article 15/2026

What are the requirements to be complied with for a plant level agreement to constitute a collective agreement?

In respect of plant level collective agreements, the following questions are currently of particular relevance:

  • who is bound by a plant level collective agreement?
  • how does a plant level agreement extend to employees who are not members of the registered trade union or registered trade unions party to the agreement?
  • if a plant level agreement has a specific beginning and end date, for what period is it binding?
  • under what circumstances does a plant level agreement vary a contract of employment of an employee?
  • if a plant level agreement is for an indefinite period, how can it be terminated?
  • how are disputes regarding plant level collective agreements resolved?

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Requirements to be met for a plant level agreement to constitute a collective agreement ito the LRA

  • Section 213 of the LRA requires that such agreement must comply with the following requirements:
    • it must be a written agreement
    • signature is not required and same could, for instance, be contained in a resolution
    • concerning terms and conditions of employment
    • or any other matter of mutual interest
    • concluded by one or more registered trade unions, on the one hand, and, on the other hand, one or more employers, one or more registered employers’ organisations, or one or more employers and one or more registered employers’ organisations
  • In summary, a plant level collective agreement is a written agreement concerning employment and concluded by a registered trade union (or more than one registered trade union), on the one hand, and, on the other hand, an employer (or more than one employer), or one or more registered employers’ organisations (or a combination of such employers and registered employers’ organisations)

Who is bound by a collective plant level agreement?

  • Section 23(1) of the LRA regulates the scenario and states that a collective agreement binds:
    • the parties to the collective agreement
    • each party to the collective agreement and the members of every other party to the collective agreement, insofar as the provisions are applicable to them
    • the members of a registered trade union and the employers who are members of a registered employers’ organisation, who are a party to the collective agreement, if the collective agreement regulates terms and conditions of employment, or the conduct of employers in relation to employees, or the conduct of employees in relation to employers
  • In short, a plant level agreement binds both the parties to the collective agreement, as well as the members of such parties.

How are plant level collective agreements extended to employees who are not members of the registered trade union, or registered trade unions party to the agreement?

  • In terms of s23(1)(d) of the LRA, such employees, who are not members of the relevant trade union or unions, are bound by the collective agreement if the following conditions have been met:
    • they are identified in the agreement
    • the agreement expressly binds them
    • the trade union (or trade unions) have, as their members, the majority of employees employed by the employer in the workplace
  • In summary, such extension of a plant level collective agreement takes place if there is, firstly, certainty as to who it has been extended to and, secondly, the trade union (or trade unions) have, as their members, the majority of the employees employed by the employer in the workplace.

What is the binding period of a plant level collective agreement, with a specific beginning and end date?

  • In terms of s23(2) of the LRA, the binding period of such collective agreement and the persons covered are:
    • the whole period of the collective agreement
    • the persons bound by such collective agreement for the whole period of the collective agreement are the following:
      • members of the registered trade union and the employers who are members of the registered employers’ organisation that is a party to the collective agreement
      • who are members at the time it became binding or who become members after it became binding
      • whether or not the person continues to be a member of such trade union or employers’ organisation

The variation of a contract of employment by a plant level collective agreement

  • Section 23(3) of the LRA regulates the scenario and indicates, where applicable, when a collective agreement varies a contract of employment between an employer and employee who are bound by such collective agreement.
  • From the above, it is apparent that a plant level collective agreement does not automatically vary a contract of employment, but only where applicable – the most obvious instance of where it is so applicable is when the collective agreement itself states that it varies a contract of employment – more about this in a subsequent article.

How does a plant level collective agreement for an indefinite period come to an end?

  • In terms of s23(4) of the LRA, unless the collective agreement provides otherwise, any party to a collective agreement that is concluded for an indefinite period may terminate the agreement by giving reasonable notice, in writing, to the other parties.
  • In a subsequent article, we will deal with the Public Servants Association of South Africa and Others v CCMA and Others [2024] 10 BLLR 1087 (LC), (2024) 45 ILJ 2795 (LC), where the labour court scrutinised the circumstances where a party gave such notice to terminate a plant level collective agreement for an indefinite period.

Disputes about plant level collective agreements

  • The interpretation and application of plant level collective agreements are, in terms of s24 of the LRA, to be referred to the CCMA, but only under the following circumstances:
    • where the collective agreement does not provide for a dispute-resolution process
    • the procedure provided for in the collective agreement is not operative or
    • any party to the collective agreement has frustrated the resolution of the dispute in terms of the collective agreement
  • As to who has the locus standi to refer such dispute about the interpretation and application of plant level collective agreements to the CCMA, such topic will be discussed in a subsequent article.
  • The fact that the CCMA does not currently have the jurisdiction to enforce a plant level collective agreement will also be discussed in a subsequent article.
November 9, 2026

Section 187(1)(f) of the LRA reads as follows: ‘A dismissal is automatically unfair if the reason for the dismissal is that the employer unfairly discriminated against the employee, directly or indirectly, on any arbitrary ground, including but not limited to religion, conscience and belief”.

In terms of s187(2)(a) of the LRA, despite the aforesaid s187(1)(f), a dismissal may be fair if the reason for the dismissal is based on the inherent requirements of a particular job.

What approach is to be followed to determine, firstly, whether the reason for the dismissal on the basis of religion, conscience or belief is based upon an inherent requirement of a particular job?

And, secondly, what approach is to be followed to determine whether or not an employer complied with its duty to reasonably accommodate the aforesaid category of employees?

November 2, 2026

In the previous article, we set out the traditional approach to s187(2)(b) of the LRA, covering the scenario where an employee reached the normal or agreed-upon retirement age, but continued to work beyond such age. The constitutional court, in Motor Industry Staff Association and Another v Great South Auto Body CC t/a Great South Panelbeaters (Landman); Solidarity obo Strydom and Others v State Information Technology Agency Soc Ltd (Solidarity) – combinedly referred to as Landman; Solidarity – had the opportunity to scrutinise such traditional approach and delivered three conflicting judgments. So, what approach should role players now employ, seeing that consensus was not reached in the constitutional court?

October 26, 2026

In terms of s187(1)(f) of the LRA, a dismissal is automatically unfair if the reason for the dismissal is that the employer unfairly discriminated against the employee, directly or indirectly, on any arbitrary ground, including, but not limited to, age.

In terms of s187(2)(b) of the LRA, despite s187(1)(f), dismissal, based on age, is fair if the employee has reached the normal or agreed retirement age for persons employed in that capacity.

What is the approach traditionally adopted where an employer permits an employee to work beyond the normal or agreed-upon retirement age and subsequently wishes to terminate the services of the employee, based on age, and wishes to rely on the defence as set out in s187(2)(b)?