Skip to main content

Article 85/2021

Labour Edge

The institution of review proceedings does not suspend the operation of an arbitration award unless security is furnished to the satisfaction of the court in terms of s145(8) of the LRA.  On what basis did the labour appeal court recently resolve the conflict between various labour court judgments interpreting the stay of enforcement of arbitration awards pending review proceedings?

In City of Johannesburg v Municipal Workers Union obo Monoreng and Another (2019) 30 SALLR 159 (LAC), the labour court ruled as follows:

  1. the labour court has a discretionary power under s145(3) of the LRA to stay the enforcement of an arbitration award pending its decision in the review application. It may stay the enforcement of an arbitration award pending finalisation of a review application against the award with or without conditions. It may, in terms of s145(8) of the LRA, dispense with the requirement of furnishing security. Properly construed, s145(3) read with s145(7) and s145(8) should be interpreted to mean that, where an applicant in a review application furnishes security to the labour court in accordance with s145(8) of the LRA, the operation of the arbitration award is automatically suspended pending its decision in the review application. In other words, the employer need not make an application in terms of s145(3) of the LRA to stay the enforcement of the arbitration award pending the finalisation of the review application;
  2. however, should the employer wish to be absolved from providing security or to provide security in an amount less than the threshold in s145(8)(a) and s145(8)(b), then it is required to make an application to the labour court, in terms of s145(3), for the stay of the enforcement of the arbitration award pending its decision in the review application. The employer must make out a proper case for the stay as well as for the provision of security in accordance with s145(8) to be dispensed with or reduced;
  3. the words ‘unless the labour court directs otherwise’ in s145(8) of the LRA must be construed broadly to mean that the labour court is afforded a discretion to either:
    • exempt the employer from paying security on the stay of the enforcement of an arbitration award pending its decision on review; or
    • reduce the quantum of security to be furnished by the employer to an amount below the threshold in s145(8)(a) and s145(8)(b) of the LRA; and
  4. although s145(7) of the LRA makes specific reference to ‘the applicant’, it effectively applies to only employers. It makes no provision for an employee who brings a review application to furnish security. The purpose of s145(7) and s145(8) is essentially to dissuade employers from bringing frivolous review applications with no prospects of success and ensure that they are timeously and expeditiously prosecuted.

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?