Skip to main content

Article 50/2025

The scenario is as follows: in terms of a collective agreement between an employers’ organisation and various trade unions, provision is made for the accreditation of medical schemes by the relevant bargaining council, so that employees may enjoy the benefits of selecting and joining a scheme to which their employers contribute. The marketing of the various schemes, in the period before the employees make a selection, secures competition between the various schemes to enhance informed choices by the employees.

The supreme court of appeal, in SA Municipal Workers Union National Medical Scheme v City of Ekurhuleni and Others (2024) 35 SALLR 133 (SCA), had to deal with the above scenario and the interference by a third party, namely, the City of Ekurhuleni, in such relationship.

What are some of the more important principles to be identified governing the said scenario?
_____________________________________

The SCA, in City of Ekurhuleni (supra), adopted the following approach:

  1. the first issue to be decided was whether or not such collective agreement may be a contract for the benefit of a third party;
  2. with reference to Total SA (Pty) Ltd v Bekker NO 1992 (1) SA 917 (A), the SCA in casu held that such collective agreement could not constitute a stipulatio alteri – the relevant medical scheme was not a party to such collective agreement in terms of s213 of the LRA and, furthermore, such collective agreement was not extended to such non-party in terms of s32 of the LRA;
  3. however, the SCA in casu indicated that the accreditation that occurred in terms of the collective agreement by the relevant bargaining council constitutes an agreement giving rise to rights and obligations of the various medical schemes;
  4. with reference to Lanco Engineering CC v Aris Box Manufacturers (Pty) Ltd 1993 (4) SA 378 (D), Masstores (Pty) Ltd v Pick ‘n Pay Retailers (Pty) Ltd 2017 (1) SA 613 (CC) and Country Cloud Trading CC v MEC, Department of Infrastructure Development 2015 (1) SA 1 (CC), the court held that the interference by the City of Ekurhuleni constituted the delict of unlawful interference with the aforementioned contractual relations.
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?