
SCA: Retirement fund agreement for municipal staff is illegal
The majority finds the accreditation mechanism effectively coerced funds to amend their rules or risk losing employer contributions – undermining trustees’ fiduciary duties under the PFA.

The majority finds the accreditation mechanism effectively coerced funds to amend their rules or risk losing employer contributions – undermining trustees’ fiduciary duties under the PFA.

The proposed changes limit employees earning over R1.8m a year to compensation – capped at their annual salary – for unfair dismissal claims.

From stronger retrenchment safeguards to the inclusion of gig workers under formal labour protections, proposed amendments could redefine the future of work for millions of South Africans.

A valid work permit may be absent, but fair labour procedures must still be followed.

Synchronising employment agreements with the rules of occupational retirement funds promotes legal certainty, secures employee benefits, and smooths succession planning.