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
A bank’s right to set-off and their duties towards third parties
by Tracy-Lee Janse van Rensburg, Director and Malachizodok Mpolokeng, Candidate Attorney It is well known that banks play a critical [...]
Vesting of Capital Gains through Multiple Trusts
by Erich Bell, Director The recent tax court decision IT 24918 (delivered on 18 March 2021) is the first case [...]
The SAA Business Rescue Process : A steep learning curve – Lessons for SOEs
Setting the scene Since being placed under voluntary business rescue in December 2019, South African Airways ("SAA") has been a [...]
Temporary Employer / Employee Relief Scheme (“TERS”) update
by Jacques van Wyk, Director; Andre van Heerden, Senior Associate; and Lukrisha Ramadu, Candidate Attorney On 20 April 2021 the [...]
The Legal 500 Europe, Middle East & Africa Rankings
The Legal 500 has released its 2021 rankings for the EMEA region. Regarded as [...]
Opportunities for private equity in business rescue
By Elliott Wood, Director and Bafana Ntuli, Director On 23 February 2021, the first ever virtual Ansarada DealMakers Annual Awards [...]
