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 downside to a side hustle – moonlighting, conflicts of interest and the law
and Nombulelo Bashe – Candidate Attorney Employees are required to devote their time, effort and skills to advance their employer's business [...]
Mystery of the momentary visitor: Solving the uncertainty surrounding the replacement of an interim business rescue practitioner
A company can be placed in business rescue in only two ways, voluntarily by a board resolution in terms of [...]
International: Trends in AI governance
READ - INTERNATIONAL: TRENDS IN AI GOVERNANCE We're thrilled to share an insightful article featured in OneTrust DataGuidance on the [...]
A minute before midnight, focus required! Deadline is 22 January 2024
and Chiara Ferri - Candidate Attorney The Media and Digital Platforms Market Inquiry ("the Inquiry"), which launched in October 2023, [...]
Making the dies count
and Nombulelo Bashe - Candidate Attorney On 21 April 2023 the Governing Body of the Commission for Conciliation, Mediation and [...]
Creditors now empowered to make application to declare directors delinquent
and Khanyisa Tshoba - Candidate Attorney A critical look at Vantage Mezzanine Fund II Partnership and Another v Hopeson and [...]
