The Unfair Dismissal Settlement Agreement is a crucial document in South African employment law, used when parties wish to resolve a dispute arising from an alleged unfair dismissal without proceeding to full litigation. It's typically employed after a dispute has been raised but before (or during) CCMA proceedings or Labour Court litigation. The agreement must comply with the Labour Relations Act 66 of 1995 and can be used across all industries and employment levels. It provides certainty to both parties by setting out clear terms of settlement, including compensation, confidentiality, and mutual releases. This document is particularly important in the South African context where labor disputes are common and the legal framework strongly protects employee rights. The agreement can be made an order of the CCMA or Labour Court, providing additional enforceability.

1. Parties: Identification of the employer and employee, including their full details and registration/ID numbers

2. Background: Brief history of employment, circumstances of dismissal, and dispute leading to settlement

3. Definitions: Definitions of key terms used in the agreement

4. Settlement Amount: Details of the settlement amount, payment terms, and method of payment

5. Tax Treatment: Clarification of tax treatment of the settlement amount and responsibilities for tax payments

6. Mutual Release: Full and final settlement clause releasing both parties from all claims relating to the employment and dismissal

7. Confidentiality: Obligations regarding confidentiality of the settlement terms and dispute

8. Non-Admission: Statement that the settlement does not constitute admission of liability by either party

9. Reference: Terms regarding future employment references

10. Entire Agreement: Confirmation that this document represents the entire agreement between parties

11. Governing Law: Confirmation that South African law governs the agreement

12. Signature: Execution clause and signature blocks