Workers unhappy with new contracts beat municipality in court

The Steve Tshwete local municipality in Mpumalanga has been ordered to pay four employees who worked in its licensing department six months’ worth of salaries.

This comes after the municipality failed to pay the salaries since July 2024.


According to the Labour Court, the Mpumalanga Department of Community Safety, Security, and Liaison notified the municipality in 2023 that it planned to take over the licensing department.

Licensing department transferred to the province

In January 2024, a director from the [department] held a meeting with staff to discuss salary offers to individual employees. And the municipality transferred the licensing department to the province on June 30.

However, the four employees had doubts about their contracts of employment. As a result, they attempted to engage the director and senior employees of the municipality.

It was revealed in court that those attempts were not successful.

“The employees continued to tender their services to the municipality after 30 June 2024. However, they were not paid,” said acting judge Advocate Saleem Seedat.

Municipality said workers’ presence at work was unlawful

The lawyers representing the municipality argued that the employees’ presence on its client’s premises was unlawful. This as they gave them a notice to immediately vacate from the municipal premises in January 2025.

“The municipality holds the intractable view that the employees [applicants] were unlawfully on its premises,” the lawyers stated.

But Seedat said if the employees’ presence was unlawful, access to the premises was not denied.

Defence said access was never denied

“In fact, they had the keys to the buildings and continued to occupy their offices. The municipality made no attempt to evict them, either through a legal process or with the engagement of the SAPS.

“The acting municipal manager, Ms Tshabalala, and the acting director, HR, Mr Moetanalo continued to hold meetings with the applicants. Sometimes even coming to their offices.

“At no stage was the unlawfulness of their presence raised. The municipality gave no indication that the applicants had ceased to be employees. This was only done on 7 January 2025,” said Seedat.

Ordered to pay outstanding salaries

Handing down the order, Seedat said the municipality is to immediately pay to the employees outstanding salaries from July 2024 to December 2024. It is ordered to continue to do so pending the determination of Part B to the Notice of Motion, whose application will be instituted within 30 days of this order.

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