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ARTICLE · 20 DECEMBER 2024

When Travel Benefits End

Fairbridges
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In a significant recent judgment, the Labour Court provided important clarity on the removal of an employment benefit in the case Public Servants Association of South Africa and 490 Others v The

South AfricaEmployment and HR
Ephraim Lehutso
Ephraim Lehutso
Ciara Pillay
Ciara Pillay
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The Legal Ruling on SARS's Travel Allowance Policy

In a significant recent judgment, the Labour Court provided important clarity on the removal of an employment benefit in the case Public Servants Association of South Africa and 490 Others v The Commission for Conciliation, Mediation and Arbitration. The case revolved around the removal of a travel allowance policy by the South African Revenue Service (SARS), which impacted many employees.

Background: The Journey Begins

In 2006, the Public Servants Association of South Africa (PSA) and SARS reached a collective agreement that provided a monthly travel allowance for employees who traveled extensively for work, covering distances up to 500 km. This agreement was amended in 2008 to clarify that the travel allowance would be excluded from the total remuneration of eligible employees.

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