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
An extension of the validity of prescriptions in terms of an amendment to the Medicines and Related Substances Act No. 101 of 1965
by Neil Kirby, Director and Head of the Healthcare & Life Sciences practice and Zamathiyane Mthiyane, Senior Associate On 30 [...]
CIPC certificate for permitted services
By Jacques van Wyk, Director and Thabisa Yantolo, Candidate Attorney The Department of Trade and Industry have not yet provided [...]
What is the role of the SANDF during the lockdown?
Nelsie Siboza, Candidate AttorneyReviewed by Naledi Motsiri The role of the South African Defence Force (“SANDF”) during the lockdown has [...]
Update on emergency procurement measures
by Sarah Moerane, Director On 19 March 2020 the National Treasury issued Instruction No 8 of 2019/2020: Emergency Procurement in [...]
Return to the workplace plans
By Jacques van Wyk, Director and Thabisa Yantolo, Candidate Attorney On 29 April 2020 the Minister of Cooperative Governance and [...]
Guidance note on the Joint Directive and the Call Centre Directions
by Hilah Laskov, Senior Associate and Chelsea Roux, Candidate Attorney Reviewed by Shayne Krige, Director and head of the Investment Funds & [...]
