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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.
July 20, 2026

Precautionary suspensions

In the public sector, the Senior Management Service Handbook (SMS Handbook) directly addresses precautionary suspensions and the 60-day time limit.

Clause 2.7(2)(c) of the SMS Handbook provides that ‘If a member is suspended or transferred as a precautionary measure, the employer must hold a disciplinary hearing within 60 days. The chair of the hearing must then decide on any further postponement.’

Regulation 6 of the Local Government: Disciplinary Regulations Senior Managers, 2010 (Regulations) provides for the precautionary suspension of senior municipal employees and Regulation 6(6)(a) provides: ‘If a senior is suspended, a disciplinary hearing must commence within three months after the date of suspension, failing which the suspension will automatically lapse.’

What are the principles governing a determination of the question as to whether or not a senior municipal employee’s suspension automatically lapses in terms of the aforesaid Regulation 6(6)(a)?

Obviously, the answers to the aforesaid question are very relevant in the private sector where, firstly, a collective agreement regulates a similar process or, alternatively, such contractual rights have been created between the parties, to be enforced in terms of s77(3) of the BCEA.

July 13, 2026

In the previous article, we dealt with the consequences of a plant level collective agreement with a definite beginning and end date. We indicated to you that, in line with s23(2) of the LRA, and an analysis of the relevant case law, that, once such a collective agreement reaches its expiry date, it expires and is no longer of any force or effect. In this article, we deal with the scenario where a plant level collective agreement is concluded for an indefinite period and the employer gave notice to terminate same.

What are the consequences when a party to a plant level collective agreement, concluded for an indefinite time period, gives notice to terminate such collective agreement?

July 6, 2026

In terms of s23(2), a collective agreement binds, for the whole period of the collective agreement, every person so bound in terms of s23(1)(c) (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 the terms and conditions of employment, or the conduct of the employers and employees) who was a member at the time it became binding, or who becomes a member after it became binding (irrespective of whether or not that person continues to be a member of such trade union or employers’ organisation for the duration of the collective agreement).

What is the relevant case law development as to a plant level collective agreement that has an expiry date, i e does such collective agreement continue to be of force and effect after such expiry date?