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
The Banks Win on Appeal: SCA Overturns R704 Million High Court Judgment
by Tshegofatso Matlou, Associate, reviewed by Jones Antunes, Director In the decision of African Banking Corporation of Zambia Limited and [...]
Out with the Old: South Africa’s Proposed Overhaul of Exchange Controls and the Inclusion of Crypto Assets
by Janice Geel, Associate and Azraa Sidat, Candidate Attorney, reviewed by Natalie Scott, Director and Head of Sustainability On 17 [...]
Do not call me I’ll call you …… South Africa’s 2026 CPA Amendment Regulations: operationalising the national opt‑out regime for direct marketing and shifting day‑to‑day anti‑spam responsibility to the National Consumer Commission
by Ahmore Burger-Smidt, Director and Head of Regulatory The Consumer Protection Act Amendment Regulations, 2026 deliver the long‑awaited operational framework [...]
Business Rescue Applications Under Scrutiny: business rescue orders are not there for the taking!
by Eric Levenstein, Director and Head Insolvency & Business Rescue and Amy Mackechnie, Senior Associate This article considers the recent decision in [...]
The AI Arms Race and what it means for Competition Law: A new era or new focus
by Ahmore Burger-Smidt, Director and Head of Regulatory We are not in the habit of writing breathless technology briefings. That [...]
The AI Governance Stack and South Africa’s Draft National AI Policy: An Operational Gap in Search of a Framework
by Ahmore Burger-Smidt, Director and Head of Regulatory Author's Note I am presently reading Noah M Kenney's Governing Intelligence: Law, [...]
