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
Pro Bono Articles
Five tips to optimise your first consultation with an attorney Coercive and Controlling Behaviour in the Domestic Violence Act [...]
FAQ – Opportunities for investors arising from the South African business rescue process
DOWNLOAD THE FAQ GUIDE HERE The South African business rescue process has created the opportunity for investors (local and [...]
Raging against the machine
and Thembelihle Tshabalala, Candidate Attorney, The meteoric rise of artificial intelligence (AI) is generating infinite possibilities and particularly so [...]
Additional obligations on accountable institutions
Following on the recent amendments to the Financial Intelligence Centre Act, 38 of 2001 ("FICA") and most notably, the [...]
The proper interpretation of conflicting provisions in the Income Tax Act
and Luke Magerman, Candidate Attorney A recent tax court judgment added valuable jurisprudence to the often-litigated issue of the interpretation [...]
What is the relevance of s 52 of the MPRDA on retrenchments in terms of section 189 and 189A in the mining industry?
In National Union of Mineworkers v Anglo American Platinum Ltd & others (Amplats), on 15 January 2013, Amplats had [...]
