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
Sexual harassment in the workplace – a balanced consideration
By Bradley Workman-Davies, Director and Kelly Sease, Candidate Attorney On 18 March 2022, the Minister of Employment and Labour (“Minister“) [...]
The transferability and enforceability of restraint of trade agreements
Issue Where a business is sold as a going concern do the restraint of trade undertakings contained in employees' contracts [...]
Employees beware: the enforceability of zero-tolerance policies in the workplace
Issues Whether an employee may be dismissed, in the workplace, for testing positive for dagga and the importance of 'zero-tolerance' [...]
Fresh Produce Market Inquiry: What is it all about? Apples, pears, grapes, avocados, tomatoes, onions and more
The Competition Commission (Commission) is set to conduct a market inquiry into the fresh produce market of South Africa (Fresh [...]
Two pots of gold: What you should know about the “two-pot” retirement system
The proposed "two-pot" retirement system would allow people to have the best of both worlds - early access to a [...]
ChatGPT: Yet Another Hurdle for Data Privacy?
Data Privacy & Cybercrime ChatGPT is an OpenAI[1] developed artificial intelligence (AI) chatbot which has been programmed to have advanced conversational [...]
