Bargaining council returns in South Africa: the employer's guide

What a bargaining council is

A bargaining council is set up jointly by registered trade unions and employers' organisations for a sector and area (LRA s.27). It registers with the Registrar of Labour Relations (s.29). Its registered scope (sector and area) is determined on registration and stated in the registrar's certificate (s.29(15)); s.30 governs the constitution. Of its powers in s.28, two drive returns: concluding and enforcing collective agreements (s.28(1)(a)–(b)) and running pension, provident, sick pay, holiday and similar funds (s.28(1)(g)).

A collective agreement concluded in a council binds the parties and their members (s.31). On the council's request the Minister can extend it by Gazette notice to every employer and employee in the registered scope, union member or not (s.32). That is why a non-union business must still register, deduct and file. The agreement must provide an exemption procedure and an independent appeal body (s.32(3)(e)–(f)).

Who must register and submit returns

Any employer whose business falls inside the registered scope of a council with an extended main agreement. Scope turns on what the business does and where, not on its name or CIPC registration. A courier is road freight; a panel-beater is motor industry. If you straddle two sectors, ask the council in writing for a scope ruling.

The main agreement sets a period within which a new employer must register and get an employer number. Most councils register each employee too, so movements are part of the monthly cycle. An exemption does not take you out of scope: it runs for a period, on conditions, and some councils still want a nil return.

The four councils we cover in detail

What a monthly return contains

Forms differ by council; the content is the same four blocks.

1. Employer block. Council registration number, trading name, address, period, signatory.
2. Employee schedule. One line per employee: ID or passport number, name, council employee number, designation or occupation code (it drives the minimum wage and levy), start date, hours, and the wage figure the agreement uses as the contribution base.
3. Contributions per employee. Council levy, fund contributions (provident or pension, sick pay, holiday or leave pay, wellness, depending on the council) and union subscriptions where the agreement provides, each split into employer share and employee deduction.
4. Totals and movements. Total employer contribution, total employee deductions, grand total payable, payment reference, and the movement schedule: starters, terminations, transfers, corrections.

Two BCEA provisions sit under the deductions. s.34(1)(b) permits deductions required or permitted by a collective agreement, so no separate consent is needed. s.33(1)(e) requires the payslip to show the amount and purpose of each deduction, so council lines must appear on the payslip. The schedule is personal information under POPIA (processing it to meet the agreement is lawful, s.11(1)(c)); store and send it securely.

Deadlines: the typical pattern

The LRA sets no due date. Each council's main agreement does. Returns are monthly, with return and payment for a pay month due together, but the date varies by council: MIBCO returns are due and payable on the 10th of each month, while NBCRFLI returns and levies are due on or before the 20th of the following month. Take the date from the current main agreement on your council's site, and check again whenever a new agreement is gazetted.

Rates move on a cycle too. MEIBC publishes its funds contribution breakdown for a July to June year; NBCRFLI circulates annual wage and allowance increases with an effective date. Last cycle's rates are a common cause of rejected returns. Put the rate-change date next to the filing date in your employer compliance calendar.

Penalties, interest and compliance orders

A council may monitor and enforce its own agreements (LRA s.33A(1)), and the agreement is deemed to include the rules of every fund it runs (s.33A(2)(b)).

• Inspection. Designated agents appointed under s.33 (general functions in s.33(1A)) may enter premises, question people and inspect and copy payroll records (s.33(3) read with Schedule 10).
• Compliance order. The agent may order you to comply within a specified period (s.33A(3)).
• Arbitration. If you do not comply, the council refers the dispute to an arbitrator it appoints (s.33A(4)), who can order payment, impose a fine, charge an arbitration fee and award costs (s.33A(8)).
• Enforcement. The award is final and enforced under s.143 like a Labour Court order (s.33A(10)). Maximum fines are set by Gazette notice under s.33A(13); check the current notice on labour.gov.za.

The LRA itself charges interest: any amount owing under a collective agreement bears interest from the date it was due, at the rate under the Prescribed Rate of Interest Act 55 of 1975, unless the award provides otherwise (s.33A(9)). Agreements and fund rules may add their own interest or penalty terms on top, and no council issues a letter of good standing while you are in arrears. For the COIDA equivalent, see our COIDA Return of Earnings guide.

Preparing the return from a payroll export

Sage 300 People, Sage VIP (Sage Payroll Professional) and Sage Pastel Payroll all export employee master data and the month's earnings and deductions to Excel or CSV.

1. Close the pay month first. Run the return after the final pay run, including mid-month corrections.
2. Export the right fields. Employee code, ID or passport number, names, start and termination dates, occupation or grade code, hours, the wage base the agreement specifies, and each council deduction and company contribution line. Sage 300 People: an export with earnings and deduction lines; VIP: the report writer; Pastel: the payroll register. Export to CSV before Excel touches the ID column.
3. Map occupation codes. Payroll job titles must map to the council's designation or grade codes. Get this right once and store it.
4. Apply the agreement's wage basis. Basic wage, actual earnings or a flat weekly amount, with the agreement's pro-rata rules for part months and unpaid leave. Read the clause, not last month's file.
5. Calculate both shares and reconcile. Employer share, employee share, and a grand total equal to the EFT you will make, to the cent, with the council's payment reference.
6. Complete the movement schedule. Starters with dates, leavers with last day and reason, transfers. Terminations also trigger notice and leave pay-out rules: see BCEA s.37 notice periods and annual leave accrual under BCEA s.20.
7. Submit, pay, file. Submit on the portal or the council's PDF form, pay, and keep the return, the confirmation and the proof of payment together.

Common errors

• Excel strips leading zeros from ID numbers or turns them into scientific notation. Keep ID columns as text.
• Leavers still on the schedule, starters missing, because movements were done from memory.
• Wrong occupation code. It changes the levy, the fund rate and the minimum-wage check at once.
• Employer and employee shares swapped on one fund line: the total is right, every payslip is wrong.
• Return submitted without payment, payment without the return, or the two differing by a rounding error: all three count as non-compliance.

Dismissal disputes inside a council's scope go to the council, not the CCMA: see fair procedure for dismissal. The labour law compliance checklist puts council registration next to UIF, COIDA and SARS; all guides are at /guides.

Frequently asked questions

Do I have to submit a bargaining council return if I am not a member of the council?

Yes, if your business falls within the council's registered scope and the Minister has extended the main agreement to non-parties under LRA s.32. Membership of a union or employers' organisation is irrelevant. The only way out is a written exemption under the agreement's exemption procedure.

When are bargaining council returns due?

The LRA does not set a date. Each council's main collective agreement does, and the date varies by council: MIBCO returns are due and payable on the 10th of each month, while NBCRFLI returns and levies are due on or before the 20th of the following month. Take the date from the current agreement or notice on your council's website and put it in your compliance calendar.

What happens if a return is late or unpaid?

The council's designated agent can issue a compliance order under LRA s.33A(3). If you do not comply, the council can refer the matter to arbitration (s.33A(4)) and the arbitrator can order payment, impose a fine and award costs (s.33A(8)). Interest on the unpaid amount runs from the due date at the prescribed rate under LRA s.33A(9), and the agreement or fund rules may add their own interest or penalty terms.

Can I prepare the return from my payroll system?

Yes. Sage 300 People, Sage VIP and Pastel Payroll all export employee master data and the month's earnings and deductions to Excel or CSV. You then map those columns to the council's form, apply the agreement's wage basis and rates, and reconcile the total to your payment.

Which bargaining council does my business fall under?

It depends on what the business does and where, not on how it is registered. Compare your activities to the registered scope in each council's main agreement. If you operate in more than one sector, ask the council in writing for a ruling on scope rather than guessing.

Sources

• Labour Relations Act 66 of 1995 (gov.za), ss.27–33A, s.143 and Schedule 10
• Prescribed Rate of Interest Act 55 of 1975 (gov.za): the rate applied by LRA s.33A(9)
• Basic Conditions of Employment Act 75 of 1997 (gov.za), ss.33 and 34
• Department of Employment and Labour: register of councils and Gazette notices
• MIBCO, MEIBC, NBCRFLI and NBCCI: current agreements, return forms, rate circulars and portals
• MIBCO FAQs (returns due and payable on the 10th of each month) and NBCRFLI FAQs (monthly returns and levies on or before the 20th of the following month)
• Information Regulator: POPIA