G-O v Reckitt Benckiser SA (Pty) Ltd (JA 95/2014) [2016] ZALAC 2 ; [2016] 5 BLLR 425 ; (2016) ILJ 902 (3 February 2016) per Savage AJA [Waglay JP and Coppin JA concurring]
It is not uncommon for employers and employees to sign voluntary separation agreements. They eliminate the risk of litigation and comply with public policy. A regional human resources director was summarily dismissed for reasons related to alleged misrepresentation. But at his request he was provided with a ‘soft exit’. He voluntarily signed a separation agreement and waived all rights to challenge his dismissal. But this did not stop him applying to the Labour Court for urgent relief that was refused by Molahlehi J who also refused him leave to appeal. But leave was granted by the LAC on his petition. It was argued on his behalf that the agreement should be set aside as it violated his constitutional rights and was against public policy. Savage AJA dealt with the nature of the proceedings, the legal tests and the requirements of public policy. In a unanimous judgment the LAC disallowed the appeal with costs.
Note: On 15 September 2016 the Constitutional Court upheld this judgment.
Reported:
[2016] 5 BLLR 425 (LAC)
Headnote:
Settlement agreements – Constitutionality – Senior employee signing post-dismissal agreement in which he waived right to approach court for any remedy relating to employment, then claiming agreement contrary to public policy – Evidence indicating that employee full aware of implication of signing agreement aimed at resolving disputes – Agreement not contrary to public policy.
(2016) 37 ILJ 902 (LAC)
The ConCourt upheld the judgment of the LAC. See
Separation and settlement agreement: Public policy and binding waiver