Mhlontlo Local Municipality and Others v Ngcangula and Another

The first and second respondents were senior employees of the Mhlontlo Local Municipality. In 2019 the municipality resolved to grant employees a 2.5% notch salary increase retrospectively to 2015. The respondents received the increase. In 2020–2021 the municipality revoked the resolution after the Auditor-General identified the payments as irregular expenditure and demanded repayment. The municipality reduced the respondents’ salaries and allowances without their consent. The respondents approached the Eastern Cape High Court alleging unlawful deductions in breach of s 34(1) of the Basic Conditions of Employment Act (BCEA). The High Court held it had jurisdiction under s 77(3) of the BCEA and ordered reinstatement of the deducted amounts. The municipality appealed to the Supreme Court of Appeal.

The appeal was upheld. The High Court’s order was set aside and replaced with an order dismissing the applications with costs. The appeal was reinstated, and costs were awarded against the respondents, subject to limited exceptions.

The case clarifies the approach to jurisdiction under s 77 of the BCEA, reaffirming that civil courts have concurrent jurisdiction where disputes are framed as contractual employment claims. It also underscores that jurisdiction depends on pleadings, not the ultimate merits. Additionally, the judgment provides guidance on peremption, mootness, and the limits of employees’ contractual entitlement to salary increments granted by irregular municipal resolutions.