Following an unprotected strike on 6 April 2009, 75 employees of Dihlabeng Local Municipality were dismissed on 31 July 2009. The Municipality paid them their accrued leave and pro rata bonuses. The employees challenged their dismissal, but before the matter was heard, the parties concluded a settlement agreement on 8 October 2009. In terms of the agreement, the employees were employed again from 8 October 2009 in their previous positions, received final written warnings, were not paid any salary or benefits for the period between dismissal and re-engagement, and their prior years of service were recognised for limited purposes. After resuming work, the employees were issued with new employee numbers and elected new pension and medical aid funds. Two years later, the employees claimed withdrawal benefits from the appellant pension fund, asserting that their dismissal had terminated their membership. The Pension Funds Adjudicator dismissed the complaint, finding that the employees had been reinstated and remained in continuous employment. Thereafter, the appellant fund claimed alleged arrear pension contributions from the Municipality under s 13A of the Pension Funds Act, contending that the employees had been reinstated and that their membership of the fund revived. The High Court dismissed the application, and the Fund appealed to the Supreme Court of Appeal.