In February 2026, the Labour Court ruled that an employer’s decision to unilaterally abolish the contractual payment of a 13th cheque to its employee amounted to a breach of contract. The court emphasised the trite position that contractual obligations are not optional and cannot be mischaracterised as a workplace practice to avoid obligatory fulfilment.

At first sight, the answer to this question would be: only by mutual agreement. But once you take a closer look there are many ways and situations that make it possible for an employer to unilaterally change the contractual terms.

  • Collective bargaining agreements (CBAs) are binding for members of those employers’ associations (firms)  and labour