Nationwide Wage Shake-up Hits Western Cape Restaurants and Fast-Food Outlets
Q&A with Jan Truter: In this legal breakdown, Labourwise founder and labour law specialist Jan Truter unpacks what the national extension of the hospitality sector collective agreement means for Western Cape businesses, key wage changes, and pending legal challenges.
This follows the Minister's extension of the BCFFRCAT Main Collective Agreement to establishments nationwide, including the Western Cape.
With the exception of the Johannesburg and Pretoria regions, all businesses in the industry are now required to comply with its terms.
Who is affected?
Truter: The definition of “Fast Food, Restaurant and Allied Industries” is broad. It covers almost any conceivable establishment involved in preparing, supplying, selling or serving food or beverages, as well as operations incidental to those activities, whether conducted on or off the premises.
The agreement specifically includes tearooms, restaurants, catering businesses, coffee shops, pubs, taverns, roadhouses, cafés, snack bars, fast-food outlets, convenience stores, industrial or commercial caterers, function caterers and contract caterers.
The agreement does not apply to employers and employees covered by collective agreements in the bargaining councils for the Johannesburg and Pretoria regions.
It also excludes:
Activities ancillary or incidental to the casino and hotel industries, provided they are carried on, managed and operated solely by the hotel or casino
Catering activities owned, managed or operated by sports or recreational clubs, on their premises and for the benefit of their members or patrons
Businesses conducted by filling or service stations
Food and beverage outlets that form part of a supermarket and are operated from the premises of the supermarket
How are these businesses affected?
Truter: Minimum wages are prescribed per category of employee. These range from an hourly wage of R32.95 (9% higher than the national minimum wage) at the lower end, to a wage of R57.65 for a chef, manager or sous-chef.
Employers with 10 or fewer employees may pay 10% less than the prescribed rates, provided they do not pay less than the national minimum wage.
In addition to higher wages, employers have to pay their employees an annual bonus and pay a monthly uniform allowance for employees to wash their uniforms. Both employers and employees have to make contributions to a funeral fund and provident fund.
Employers also have to register with the Bargaining Council, submit monthly returns and pay monthly levies.
Can a business apply for exemption?
Truter: Employers may apply for exemption from the prescribed wages or other provisions. However, they must first register with the Bargaining Council.
The wording of the agreement suggests that full exemption is unlikely. Even where exemption is granted from some provisions, the administrative burden and obligation to comply with the other provisions will remain.
Does this sound familiar?
Truter: In January 2021, the Minister made a similar extension. FEDHASA (the Federated Hospitality Association of South Africa) obtained an interdict preventing the Bargaining Council from requiring non-parties to comply with the agreement. FEDHASA then applied to review decisions made by the Minister and the Registrar. The State eventually abandoned its opposition to FEDHASA’s case.
According to our information, FEDHASA will again be challenging these decisions and an application for an interdict is imminent.
What should employers do?
Truter: Affected employers must register with the Bargaining Council by 25 November 2026 (i.e. within 30 days of falling within its registered scope, which is within 30 days of the agreement’s implementation date of 26 October 2026).
However, given the significant impact of the extension of the agreement, affected employers would be well advised not to do anything until the outcome of the application for an interdict is known.
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