Khazamula Samuel Miyambu and Others v Steve Tshwete Local Municipality and Another

The Mpumalanga Department of Community Safety, Security and Liaison (the Province) gave notice of its intention to take over the licensing department of the Steve Tshwete Local Municipality. The transfer occurred on 30 June 2024. The applicants, who were employees in the licensing department, continued to tender their services after the transfer but were not paid salaries from July 2024 onwards. The Municipality failed to clarify the status of their employment contracts and later alleged that their presence on municipal premises was unlawful. The applicants sought urgent relief for payment of outstanding salaries and related information, contending that the transfer constituted a transfer of a business in terms of section 197 of the Labour Relations Act.

The Municipality was ordered to immediately pay the applicants outstanding salaries from July 2024 to December 2024 and to continue paying their salaries pending the determination of further proceedings. Non-compliance with the rules was condoned, the matter was heard as urgent, and costs were reserved.

The judgment reinforces the protective purpose of section 197 of the Labour Relations Act by confirming that employees’ contracts and continuity of service are preserved in public-sector transfers of functions. It also illustrates that claims for unpaid remuneration may be treated as urgent where exceptional hardship is shown and clarifies that the duty to pay arises from the tendering of services, not actual work performed.