The employer and the worker may agree to enter into a reciprocal separation agreement to terminate the employment relationship. And the best thing is that a mutual separation agreement is not considered a dismissal under the Labour Relations Act and is, on the whole, an acceptable practice of the CCMA and the labour tribunal. The court then found that the agreement was unconstitutional, and the Tribunal found that there was no violation of Article 34 of the Constitution (the right of access to justice), as the worker had fully understood the consequences of the contractual restrictions on the separation contract. However, I was recently confronted with a case in which the worker questioned the validity of a settlement agreement for the reciprocal termination of his employment relationship. In summary, and while I personally do not agree with the remarks made in the Schroeder case, I think it is important that, pending disciplinary action against the worker, strained relations between employers and workers due to personal relationships and the urgent need to withdraw, some of the frequently cited reasons for entering into a transaction agreement are certain. Mutual dismissal is one of the quickest ways to end the employment relationship. In Metjielies/Stratostaff (Pty) Ltd t/a Adecco (P 294/12)  ZALCPE 3 (January 27, 2015), the judgment states that an employer cannot relinquish its responsibility to ensure that the worker understands the agreement. The comparison must go beyond what is legally due to the employee. In Hodges v Urban Tasj Force Investment cc et al (2013) labour court, the worker was on annual leave, when he returned, he noticed that some tasks were performed by another employee. The company entered into a reciprocal termination agreement that day and gave the employee a discount. Staff went to the CCMA and were referred to the labour tribunal because of its jurisdiction. The labour tribunal found that the worker could challenge the material and procedural fairness of the dismissal, as the worker did not renouncing the requirements that the employer must meet under the Industrial Relations Act.
As a result, the employee was compensated. It is clear from this case that if the employer pays only what is owed by law, that transaction contract can be challenged. A mutual separation agreement must be written, signed and certified by both parties.