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The Minister of Employment and Labour has published a Government Notice extending the Main Collective Agreement of the Bargaining Council for the Fast Food, Restaurant, Catering and Allied Trades to employers and employees who fall within the Council’s registered scope but are not parties to the Council.
For affected employers, the implications may be significant, particularly in relation to wage obligations, retirement benefits and other industry-specific employment conditions.
In short: From 26 October 2026, the Main Collective Agreement of the Bargaining Council for the Fast Food, Restaurant, Catering and Allied Trades binds non-party employers too. If your business falls within the Council’s registered scope, you must comply with its minimum wage, retirement benefit and other conditions, whether or not you’re a member, until 31 August 2028, unless a court intervenes or an exemption applies.
Which employers are affected?
The extension means that employers do not have to be members of the Bargaining Council or its participating employer organisations to be bound by the Agreement.
The determining factor is whether the employer’s business activities and geographical location fall within the Council’s registered scope.
Importantly, the Council’s geographical jurisdiction extends across most of South Africa. Employers should therefore not assume that the Agreement applies only to businesses operating in particular provinces or metropolitan areas.
The precise industry definitions and geographical scope are contained in Annexure 1 of the Agreement.
Employers operating restaurants, fast food outlets, catering businesses and related establishments should carefully examine these provisions to determine whether their operations fall within the Agreement’s scope.
Not sure whether your restaurant or outlet falls within the Council’s scope? Speak to a SEESA Specialist.
What are the implications for employers?
The Agreement introduces a range of employment-related obligations that affected employers will be required to observe.
These include provisions relating to minimum wages, retirement benefits and other conditions of employment.
For businesses already operating under considerable financial pressure, these additional obligations could have significant cost implications.
Employers may need to review their existing remuneration structures, employment contracts, payroll arrangements and employee benefits to establish whether they comply with the Agreement.
It is particularly important that employers assess the full financial implications rather than considering the wage provisions in isolation.
Previous legal challenges
This is not the first occasion on which the Minister has attempted to extend the Bargaining Council’s collective agreement to non-parties.
A previous extension in 2021 attracted considerable opposition from employers and industry organisations. The matter ultimately became the subject of legal proceedings, resulting in an urgent interdict preventing enforcement against non-parties pending further review proceedings.
The latest extension has also attracted objections from affected employers and industry stakeholders.
Despite these objections, the Minister has proceeded with the publication of the extension.
While further legal challenges remain possible, employers should not assume that the Agreement will automatically be suspended or that its implementation can be delayed pending the outcome of potential litigation.
Unless a court intervenes or another lawful exemption or relief applies, affected employers will be required to comply from the effective date.
What should employers do?
With the Agreement taking effect on 26 October 2026, employers should urgently establish whether their businesses fall within its scope.
Where the Agreement applies, employers should review their current employment conditions against the new requirements and identify any changes necessary to achieve compliance.
Particular attention should be given to wage structures, retirement benefit obligations and the financial impact of implementing the Agreement.
Employers who anticipate difficulties complying should obtain advice on the options and any relief mechanisms available under the applicable legal framework.
Simply disregarding the Agreement because the employer is not a member of the Bargaining Council is not a viable approach.
Conclusion
The extension of the Main Collective Agreement represents an important development for employers operating in the fast food, restaurant and catering industries.
Although the extension may still face legal scrutiny, it is presently scheduled to become binding on affected non-party employers from 26 October 2026.
Employers should act promptly to determine whether the Agreement applies to their businesses, understand the obligations it introduces and prepare for implementation.
How can SEESA help?
SEESA can assist employers in determining whether the Agreement applies to their operations, assessing its implications and understanding their compliance obligations and available options through its Labour Law services.
Speak to a SEESA labour law consultant about whether the extended bargaining council agreement applies to your business.
Frequently Asked Questions
Yes. From 26 October 2026, the Minister of Employment and Labour has extended it to employers and employees within the Council’s registered scope who are not parties to the Council.
It takes effect on 26 October 2026 and is scheduled to run until 31 August 2028.
It depends on your business activities and location. Check the industry definitions and geographical scope in Annexure 1 of the Agreement.
Minimum wages, retirement benefits and other conditions of employment.
No. Unless a court intervenes or an exemption applies, non-party employers within the Council’s scope must comply from the effective date.
This article provides general information and does not constitute legal advice. Requirements may differ according to the employer’s industry, collective agreements and circumstances.