Dismissal: Dismissal refers to a separation in which the employer has let an employee go because his services are no longer necessary. Layoffs occur when employers have a reduced volume of business or less funding, or when there is a restructuring that makes employment redundant. Economic changes, financial decisions, restructurings, layoffs, exhaustion or modified functions can lead to such a separation of employment. Depending on the circumstances, one or more employees may be laid off at the same time. “The applicant must be bound. If the parties end a full resolution dispute, no one should be released seriously and voluntarily by a company. This is particularly true when, as here, the agreement was reached in favour of the party trying to escape the consequences of its own behaviour. Even if the clause that excludes access to justice was in itself invalid and unenforceable, the applicant must nevertheless fail. The reason is that he entered into an enforceable agreement that ultimately resolved his dispute with his employer. The employee then appealed the case and went to the Labour Court of Appeal (“LAC”). In reviewing the validity of the agreement, the LAC found that, in other words, when a worker asserts that the mutual separation agreement he has entered into is invalid (due to coercion or misrepresentation), the CCMA should decide whether the mutual separation agreement is valid. If it finds that the mutual separation agreement is not valid, the agreement should be repealed and the CCMA should decide whether to dismiss unjustifiably. The jurisdiction of the CCMA is not automatically distorted by the fact that the parties have entered into a reciprocal separation agreement. A mutual separation agreement is an agreement between the employer and the worker to end the employment relationship.
Unfortunately, the parties are not always satisfied with the transaction agreement they have signed. We recently consulted with various clients after signing a mutual separation agreement with their employer. They often opted for unfavourable conditions and thought it was the only option they had.