Can an Employee agree to termination over dismissal?

On certain occasions, the employer can give an employee the opportunity to consider an agreed termination rather than facing a dismissal

Such choices include:
1. The request that the employee tenders his/her resignation;
2. To face possible dismissal subsequent to attending a disciplinary hearing;
3. Or to agree to the employment relationship terminating by mutual agreement.

After the employee’s deliberations,
1. The employee might consider tendering his/ her resignation voluntarily.
2. Alternatively, the employee might decide to attend a disciplinary hearing and challenge the dismissal.
3. Lastly, the employee and the employer might agree to terminate the employment relationship by mutual agreement. This will entail a settlement agreement being drafted, wherein both parties will sign the agreement freely and voluntarily, having understood the contents thereof.

The settlement agreement will reflect that the agreement constitutes a full and final settlement of all claims and disputes between the parties arising from the employment relationship between them. The settlement agreement entered into between the parties becomes a legal and binding agreement.

Once the employment relationship is terminated by mutual consent, the employee can no longer claim an alleged unfair dismissal as it does not constitute to a dismissal.

For advice on an agreed-upon termination or dismissal, feel free to contact Cape Labour today.


For more information on Dismissals or Agreed Upon terminations or any labour-related matters. Please feel free to contact us at Cape Labour Consultants and we will gladly assist you. Cape Labour & Industrial Consultants is a Cape Town-based providing Labour Law (Industrial Relations) and advice to employers and employees across all market segments and industries since 1987.

For more information or to Contact Cape Labour. You can find all of our relevant details here.

W.Tel no.: 021-423-3959