Separation Agreement Labour

The court then considered the worker`s argument that the agreement was unconstitutional, the Tribunal found that there was no violation of Article 34 of the Constitution (the right of access to justice), the worker having fully understood the consequences of the contractual restrictions contained in the separation agreement. In the agreement, the worker acknowledged and accepted that the termination of his employment contract was without coercion or undue influence and that he had voluntarily and unconditionally waived his right to apply to the CCMA and any other court to remedy it. When employers decide to terminate a job, they want the employee to release the company from all mandatory claims. To do this, most companies use a work separation contract. This is a way of saying that both parties have reached a consensual end to the employment relationship. In Gbenga-Oluwatoye v Reckitt Benckiser South Africa (Pty) Limited and Another (2016) 37 ILJ 2723 (CC), the Constitutional Court (“the CC”) examined the validity of a mutual separation agreement and reconstirmed that such agreements are legal, even if they waive a worker`s right to apply to the Conciliation, Mediation and Arbitration Commission (CCMA) and the courts. The Labour Court concluded that the agreement separating the parties constituted a valid concession and dismissed his appeal. The employee then went to the Labour Court of Appeal. The Labour Court of Appeal decided that a separation agreement should be legally considered in the same way as any other agreement. If the company offers wages and other payments, the agreement must state the exact amount and nature of the compensation.

Payment can be a lump sum or a structured plan. In any case, the date and method of delivery should be fixed. Where companies pay redundancy payments over a fixed period, the agreement must define the duration and structure of the payments. Analyze the terms of a separation agreement and research the labor laws in your state. The company will first prepare an agreement for the defense of its interests. Be sure to sign something that also protects your rights. Keep in mind that work separation agreements are not prescribed by law; Companies use them to seal confidential company information or protect themselves from complaints. . . .