Table of Contents
I. Introduction: Settlement Agreements
A. Settlement Agreements reached pending litigation
B. On grounds of poor performance
C. On grounds of alleged misconduct
D. For operational reasons
E. On grounds of incapacity (ill-health)
F. Where the employee is incompatible
G. To avoid the automatic transfer of contracts of employment in terms of s197
H. UIF, TAX and criminal action
I. Payments of statutory entitlements following dismissals
J. Range of settlements
II. Why settlement agreements
III. The requirements for a valid settlement agreement
IV. Initiating a settlement discussion
A. The position in the United Kingdom
B. The position in South Africa
1. The “without prejudice” principle
2. Waiver of the right to privacy
3. "Off-the-record" and "confidential" communications
4. Subject to contract
5. Is there an existing or live dispute?
V. The legal position as at 29 January 2013
VI. The legal position post 29 January 2013
A. Criteria Commissioners or Courts may use to determine the validity of settlement agreements
1. Does the settlement agreement oust the jurisdiction of the CCMA?
2. Requirements for a valid settlement agreement
VII. Making a settlement agreement an order of court
1. Introduction
2. Settlement agreements in respect of disputes referred to the CCMA.
3. Enforcement of settlement agreements through the Labour Court
VIII. Legislative provisions referencing settlement agreements
A. s24. Disputes about collective agreements (Labour Relations Act)
B. s142A. Making settlement agreement arbitration award (Labour Relations Act)
C. s143 Effect of arbitration awards (Labour Relations Act)
D. s158 Powers of Labour Court (Labour Relations Act)
E. s77. Jurisdiction of Labour Court
IX. Caselaw
A. Nehawu and Others v MEC, Department of Health, Eastern Cape LC (P118/2011; P125/2011; P127/2011) [2012] ZALCPE 9 11 February 2013 Van Niekerk J
B. Cook4life CC v CCMA, Lourens M De Bruyn (JR 350/2012) [2013] LC (Johannesburg) (29 January 2013)
C. Ulster v Standard Bank of South Africa Ltd LC (C 647/2012) [2013] ZALCCT 3 15 February 2013
D. Greef v Consol Glass (Pty) Ltd (C A02/12) [2013] ZALAC 7 (21 May 2013)
E. Lizzy Phillistus Buthelezi v Liberty Group Limited (JS 707/10) Labour Court [22 September 2011]
F. Motor Industry Bargaining Council and Kallies Panelbeaters CC (ck 95/47289/23) MINT 1182 19/05/2005
G. Motor Industry Bargaining Council and Kallies Panelbeaters CC ARB 100-03-05 AMINT 1182 MIBC
H. Sylvester Andile Zulu & 2 Others and Unlimited Building Supplies (Pty) Ltd (GAJB8532-12) CCMA (16 August 2012)
I. Making settlement agreements orders of court
1. Greef v Consol Glass (Pty) Ltd (C A02/12) [2013] ZALAC 7 (21 May 2013)
2. Application to make a settlement agreement an order of Court declined
X. Pro forma settlement agreements
A. Extended Version
B. Recommended Version
C. S197 settlements
D. Suggested correspondence initiating settlement discussions