NEHAWU Statement On The North Gauteng Court Ruling In the Matter Between the Union and SARS In Relation To The Implementation of a Wage Agreement
Thursday November 20, 2025
The National Education, Health and Allied Workers’ Union [NEHAWU] is highly disappointed by the judgement handed down by the North Gauteng High Court in the matter between the union and the South African Revenue Services in relation to the implementation of a wage agreement.
The judgement handed down by Judge Kumalo relates to our opposition of a Settlement Agreement of the 2019-22 Wage Agreement enter into between SARS and PSA to be made an order of court and for the order to be declared binding on our members.
On the 22nd of November 2023, the High Court granted an application for an order compelling SARS to implement the 2019-2022 Wage Agreement. SARS opposed the application to enforce the agreement and simultaneously filed a counter-application seeking to review and set aside the Wage Agreement. SARS subsequently applied for leave to appeal the court’s decision of 22 November 2023, but the application was withdrawn.
The union and SARS engaged in discussions to resolve the dispute relating to the judgment that arose from the non-implementation of the third year of the Wage Agreement. The discussions broke down on the 8th of February 2024, following the collapse of discussions, SARS filed an application for leave to appeal on the 22nd of February 2024.
Subsequently, on the 15th of March 2024, SARS and PSA entered into a Settlement Agreement. Furthermore SARS applied for the Settlement Agreement to be made an order of court and for an order be declared binding on our members.
The matter was heard on the 21st of May 2025, wherein the North Gauteng High Court was confronted with essentially three applications, one being the SARS leave to appeal against the last leg of the 2019 – 2022 wage agreement dispute, in particular clause 4.1 which required SARS to pay 6.2% in respect of the last leg.
In the said judgement, the North Gauteng High Court had made the last leg of the wage agreement an order of court and SARS were seeking leave to appeal of the said judgement. The second application which is also incidental to the leave to appeal relates to the condonation application for the late filing of the SARS’s leave to appeal. Lastly, it was the application by SARS to make a settlement agreement between them and another trade union an order of court.
The said settlement agreement is a watered down version of the judgement. We state so because SARS only paid 3.9% in respect of the last leg of the wage agreement instead of the full 6.2% as a consequence 2.3% remained outstanding. Essentially, workers have received 2.3% less than what the signed wage agreement would have provided them.
During the court hearing, the judge adopted the view that the application to hear the settlement agreement being made an order of court should take preference simply because the current application might render the leave to appeal and the condonation nugatory.
As NEHAWU, we argued that the settlement agreement cannot be made an order of court as the said agreement is tantamount to an amendment of the wage agreement of 2019 -2022. Furthermore, we argued that this was legally impermissible because the 2019 -2022 wage agreement had a non-variation clause as espoused in clause 8.5.
The North Gauteng High Court delivered its judgment granting SARS the order to make the settlement agreement an order of court squarely on the basis that the settlement agreement was a compromise between the parties and it did not constitute a variation of the main agreement in the strict sense. This, by implication, means the settlement agreement is now extended to all workers including those in the bargaining unit which the majority of our members are.
As NEHAWU, we have consulted our legal team and have determined that the judgement will be appealed as it is legally flawed, in the main, the court exercised its discretion to make a settlement agreement an order of court in circumstances where the said settlement agreement would be at odds with the standing collective agreement.
Lastly, the union has until to the 26th of November 2025 to file the leave to appeal and it shall ensure full compliance with the court rules and timelines.
We want assure our members that their union will do everything available at its disposal to defend collective bargaining in SARS and elsewhere as this is a battle worth to fight for. END
Issued by NEHAWU Secretariat
Zola Saphetha (General Secretary) at 082 558 5968;
December Mavuso (Deputy General Secretary) at 082 558 5969;
Lwazi Nkolonzi (NEHAWU National Spokesperson) at 081 558 2335 or email: lwazin@nehawu.org.za
Visit https://www.nehawu.org.za
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