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
Business Rescue Practitioner in South Africa
Business Rescue Practitioner 1. What is the role of the business rescue practitioner? The business rescue practitioner is required, as [...]
Section 150A LRA intervention in the Sibanye-Stillwater deadlock?
After a lengthy period of striking - nearly 3 (three) months - over wage increases at Sibanye's gold operations, the [...]
Technology, Media and Telecommunications Africa Quarterly e‑Bulletin | May 2022
Botswana Broadband Facts and Figures Report, 2021 On 21 January 2022, the Botswana Communications Regulatory Authority (BOCRA) published its Broadband [...]
A new reality for illegal miners and the ‘zama zamas’?
Illegal mining challenge Illegal mining is a critical challenge in the South African mining and minerals industry. In response to [...]
The case for South Africa’s business rescue procedure – Commissioner of Sars v Louis Pasteur Investments (Pty) Ltd and others
South Africa's business rescue procedure by Eric Levenstein, Head of Insolvency, Business Rescue & Restructuring and, Brandon Starr, Candidate Attorney [...]
Treaty residence of mobile South Africans – An interesting UK tax case
Treaty residence of mobile South Africans The tax residence status of a natural person with a mobile lifestyle recently formed [...]
