Public Servants Association of South Africa obo Members v Gwanya NO (JA36/12) [2014] ZALAC 71; [2015] 3 BLLR 300 (27 October 2014) per Francis AJA.

LAC summary: Interpretation and enforcement of settlement agreements made orders of court- Parties entering into a settlement agreement which made an order of court.  Employer terminating settlement agreement- appellant seeking declaratory order against employer- A settlement agreement made an order of court remained a contractual agreement and cannot be elevated to the status of a court order.  A settlement agreement made an order of court enforceable by way of contempt of court proceedings if it is breached and its terms are clear and unambiguous.  Enforcement of settlement agreement made an order of court depending on the nature of the dispute.  Evidence showing settlement agreement a collective agreement.  Settlement agreement made an order of court a collective agreement and may be terminated on reasonable notice.  Dispute about the interpretation and enforcement of a collective agreement should follow the route provided for by the LRA.

Coram: Waglay JP, Francis et Dlodlo AJJA

Heard:  03 September 2013     Delivered:   27 November 2014

Appeal disallowed and Labour Court’s judgment upheld.

[1]        This is an appeal against the judgment and order of the court a quo (Conradie AJ – ed note: [2012] 5 BLLR 517) in term of which it dismissed an application to declare the respondents to be in contempt of a court order.  Leave to appeal was granted by the court a quo.