Passenger Rail Agency of South Africa v Commission for Conciliation, Mediation and Arbitration and Others

The third to 164th respondents were employed by PRASA on fixed-term contracts. When section 198B of the Labour Relations Act 66 of 1995 came into effect on 1 January 2015, their last fixed-term contracts expired on 31 March 2015 and they continued working without signing new contracts. In April 2016, PRASA and the recognised trade unions concluded a comprehensive settlement agreement under the PRASA Bargaining Forum, resolving various disputes including the position of fixed-term contract workers, and providing for a study to determine absorption into permanent employment. The agreement contained a full and final settlement clause and a dispute resolution clause. The agreement was later made an order of court. In February 2018, groups of employees, acting without union support, referred disputes to the CCMA seeking to be declared permanent employees and to claim retrospective benefits such as provident fund contributions and bonuses from 1 April 2015. The CCMA arbitrator dismissed PRASA’s jurisdictional objection based on the settlement agreement and issued an award deeming the employees permanent from 1 April 2015 and ordering PRASA to pay approximately R35 million in retrospective benefits and to enrol them in the provident fund. PRASA applied to the Labour Court to review and set aside the award.

The review application was upheld. The arbitration award issued by the second respondent was reviewed and set aside. Condonation for the late filing of the review application was granted.

This judgment clarifies the limits of CCMA jurisdiction where disputes are governed by binding settlement agreements and reinforces that interpretation and application disputes must be resolved through agreed dispute resolution mechanisms. It also provides important guidance on the correct interpretation of section 198B of the LRA, confirming that deemed indefinite employment does not automatically entitle employees to parity of benefits or unfair labour practice remedies. The case is significant for employers, unions, and commissioners dealing with fixed-term employment and post-settlement disputes.