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
South Africa’s first case on Section 31
Multinationals with South African group companies are required to adhere to South Africa's transfer pricing legislation as found in section [...]
When the law says – confess!
by Ahmore Burger-Smidt, Head of Data Privacy Practice The importance of a data breach plan The South African society has [...]
Land Reform – ANC To Amend Constitution
The ANC has been embroiled in an internal debate on how to operationalise the resolution it took in its 54th [...]
Knock knock knocking on jail’s door
The amendments to the Competition Act, 1998, which introduce criminal liability for cartel conduct, came into effect on 1 May [...]
Is it game set and match Federer?
Roger Federer, holder of eight Wimbledon men's singles titles and currently ranked no. 2 in the world in men's tennis [...]
Broad-Based Black Economic Empowerment Commission (“Commission”) finalises its first case
On 12 July 2018, the Commission issued final findings against BEE Matrix, a BBBEE verification agent. The Commission's first finalised [...]
