A settlement agreement is a written agreement that acts as the full and final settlement of a dispute that was referred to the CCMA or Bargaining Council. The parties sign this and must comply with the agreement.
If one party does not comply, you can lodge an application with the Labour Court to have the settlement agreement made into an arbitration award (Section 194 of the Labour Relations Act, 66 of 1995). If this application is successful, the settlement agreement will become an award. It’s important to note though that if the award is for compensation to an employee, there are limits on how much compensation can be claimed and enforced.
- In unfair dismissal cases and other unfair labour practices, the compensation awarded to an employee may not be more than 12 months of the employee’s salary (the salary the employee was getting when they were dismissed).
- In cases of automatic unfair dismissal (for example, being dismissed because you’re pregnant), the compensation awarded to an employee may not be more than 24 months of the employee’s salary (the salary the employee was getting when they were dismissed).
If the arbitration award is for the payment of money, you can request that the sheriff execute it and get the other party to comply. If the award is for anything else, like reinstating you as an employee or performing a specific service, you’ll need to go to the Labour Court to lodge a ‘contempt of court proceedings’ application. Awards don’t prescribe, which means they don’t ‘expire’, there is no time limit on enforcing them.
Tips:
- To get a settlement agreement enforced, you need to get an arbitration award.
- There are limits on the amount of compensation you can claim and get the courts to enforce.
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* This is only basic advice and cannot be relied on solely. Names have been changed to protect identity.