Outcome of Labour Court Judgment: Dihlabeng Local Municipality v Mofokeng and Others (Case No. J190/23)

IMATU is pleased to report another significant legal success on behalf of its members following the recent Labour Court judgment in Dihlabeng Local Municipality v Mofokeng and Others (J190/23), handed down on 29 October 2025.

In this matter, the Dihlabeng Local Municipality sought a declaratory order to have parts of a SALGBC compliance order and arbitration award declared invalid, and to set aside the employment contracts of five employees.

IMATU, representing the employees internally, successfully opposed the application, and the Court dismissed the Municipality’s case in its entirety.

Key Findings

• The Municipality followed the incorrect legal process. Arbitration awards must be challenged through a section 145 review, not via a declaratory order under section 158.
• The Court rejected the Municipality’s reliance on section 158(1)(a)(iii)-(iv), finding that it was an attempt to circumvent the prescribed review procedure.
• A 9-month delay in bringing the application was found to be excessive, and the explanations offered (administrative and management changes) were insufficient.
• The Court affirmed that Constitutional obligations of good governance do not override statutory time limits, and that municipalities are bound by the same procedural requirements as all litigants.
• The Municipality had abused fixed-term contracts, extending them for periods of up to 15 years, resulting in those employees being deemed permanent in terms of section 198B of the LRA.
• Disputes regarding the interpretation of collective agreements must be addressed through the bargaining council’s procedures, not directly in the Labour Court.

The Court concluded that the application was substantially delayed, the explanation inadequate, and that it was not in the interests of justice to entertain the matter. The application was therefore dismissed, and the Municipality was ordered to comply with the arbitration award within 30 days of the judgment.

No order as to costs was made, as IMATU represented the employees internally.

This judgment reaffirms IMATU’s commitment to defending our members’ rights, upholding fair labour practices, and ensuring accountability within local government.

IMATU will continue to challenge procedural irregularities and the misuse of fixed-term contracts wherever they occur.

Read the full judgment here: