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 Supreme Court of Appeal steps in to protect the rights of dual-citizens
Many South Africans were unaware that, until 13 June 2023, if they acquired citizenship in another country (other than [...]
When a séance to raise the dead is permissible… SCA makes finding on nature of discretion exercised when setting aside a winding-up order
An order setting aside a winding up order is akin to raising the dead - especially if the winding-up [...]
National Health Insurance Bill and the possible implications for private healthcare
A second iteration of the National Health Insurance Bill [B11B-2019] has been published. This follows a public commentary period [...]
South African Chapter in The Banking Regulation Law Review | 14th Edition
The 2023 edition of the South African Chapter in The Banking Regulation Law Review | 14th Edition guide is out! [...]
The legal and ethical processing of healthcare information
The overall objective of the Protection of Personal Information Act No. 4 of 2013 ("POPI Act") is to promote [...]
Is the refusal of a provisional sequestration order appealable?
On 14 April 2023, the Supreme Court of Appeal ("SCA") delivered judgment in the matter of Liberty Group Limited [...]
