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Settlement Agreement (Labour Dispute)
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Frequently Asked Questions
What's a settlement agreement?
Do I need a settlement agreement?
You may need to use this agreement to settle any claims arising from the dismissal of an employee.
When do I use a settlement agreement?
This agreement is used to settle potential statutory disputes between employers and employees.
How can I get the employee to sign a settlement agreement?
Settlement agreements are normally concluded after negotiation between the parties.
What's included in a settlement agreement?
This settlement agreement covers the following options:
- “Reinstatement” is retrospective. It will be as if the Employee was never dismissed. The Employee will come back to work and receive salary payments from the time he was not at work too.
- “Re-employment” is not retrospective. It will be as if the Employee was dismissed and is being employed again. The Employee will come back to work and will only receive salary payments from the time he is back at work.
- “Monetary Settlement“. The Employee will not come back to work and will receive payment as a form of settlement.
Can I attempt to commence a settlement agreement after an employee has started a CCMA claim against me?
Yes, you can conclude a settlement agreement after your employee started a claim against you; bear in mind, the signed agreement may still need to be presented to the CCMA to finalise the claim.
Can this settlement agreement be used if the employee is still employed?
No. For that, you will need a Termination of Employment Agreement.
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