Twenty-eight female guards were unfairly dismissed by a security company because the client‚ Metrora.
The ANC is set to take over the IFP-led Utrecht municipality in northern KwaZulu-Natal.
This development comes after the suspension of two councillors, one of them the mayor, was approved in the Pietermaritzburg high court this week.
Mayor Elphas Khoza and councillor Bhekisisa Mabaso have been implicated in a multi-million rands fraud and corruption scam.
KwaZulu-Natal local government MEC Mike Mabuyakhulu ordered an investigation into the irregularities.
Municipal leaders refused to comment.