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  • iLawyer

    [THE ONLINE DOCUMENT BUILDER]

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Generate your own legal
Settlement Agreement (Labour Dispute)
document online now and have a document that sets out the terms for settling your dispute.

35 Minutes to complete      Pay R200 online      Customised legal document emailed to you.

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Frequently Asked Questions

What's a settlement agreement?

A settlement agreement is a legally binding written contract between two or more parties by which the parties set out the terms to resolve the dispute between them.

Do I need a settlement agreement?

If there are two or more parties that wish to resolve a dispute, a settlement agreement is the most appropriate way to do this.

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?

You can use a settlement agreement whenever parties wish to resolve any claims without litigation.

This agreement is used to settle potential statutory disputes between employers and employees.

How can I get the employee to sign a settlement agreement?

The employer will normally make a payment in return for the employee’s waiver of claims.

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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