Legal updates and opinions
News / News
How binding is a CCMA settlement agreement?
Written settlement agreement at the CCMA
If an employee enters into a written settlement agreement at the Commission for Conciliation, Mediation and Arbitration (“CCMA”) on the advice of her representative, can she subsequently escape the agreement on the basis that she was duped into doing so by her representative? Can she do so if she entered the agreement under duress or as a result of the undue influence of her representative?
Ordinary laws of contract
In Ulster v the Standard Bank of South Africa Ltd (C 647/2012) [2013] ZALCCT 3 (15 February 2013), the Labour Court was faced with this question. It held that the ordinary laws of contract will apply. Therefore a settlement agreement can only be set aside if it is successfully shown that the employee was placed under the type of duress required in common law. In this case, the employee was a bank manager with 30 years’ experience, she was educated and well-informed.
It was clear she understood the nature of contracts. She understood the nature of the proceedings and agreed to sign the settlement agreement. In the circumstances, she entered into the agreement with open eyes, fully aware of its consequences, and should be bound by the terms thereof.
Common law position on the effect of concluding an agreement
Whilst this decision confirms the common law position on the effect of concluding an agreement, it does highlight that a settlement agreement might not stand up to scrutiny if the employee can show that he or she did not understand the legal significance of signing such an agreement, was not well informed, educated or experienced in such matters. A way to avoid this result would be to ensure that the terms of a settlement agreement are explained to the employee by the Commissioner before he or she signs the agreement.
It may even be advisable to have the agreement translated for the employee if his or her first language is different to that in which the agreement is drafted.
Read more on the CCMA pronounces on mandatory vaccination policy.
Latest News
Too old for the package? Labour Court draws the line on age-based severance
by Bradley Workman-Davies, Director The Labour Court’s decision in Bosch v Passenger Rail Agency of SA provides employers with a [...]
Proposed Amendments to the Mandatory Mediation Protocol in the Gauteng Division of the High Court: Will the latest attempt to redirect judicial traffic succeed?
by Dakalo Singo, Director and Head of Pro Bono, and Wamkelwe Ntuli, Candidate Attorney Introduction The Gauteng Division of the [...]
Section 11 consent: Can the regulator breathe life into a void transaction?
by Kathleen Louw, Director 1. Section 11 of the Mineral and Petroleum Resources Development Act 28 of 2002 ("the MPRDA") [...]
Resign First, Complain Later? The LAC Draws the Line on Constructive Dismissal
by Bradley Workman-Davies, Director Constructive dismissal is not an escape route for employees who are dissatisfied with their working environment, [...]
Kusile Pollution: SCA Orders Eskom and Regulators to Act
by Jones Antunes, Director (Reviewer), and Tashlin Ramanundh, Candidate Attorney Environmental authorisations impose strict obligations which continue throughout the life [...]
AI and gambling, the regulatory gap is growing
by Wendy Rosenberg, Director and Head of Digital Media & Electronic Communications, and Tebogo Sibidla, Director Artificial intelligence (AI) is [...]
