The
Employment Relations Authority has issued a compliance order after a party to a
settlement agreement failed to meet its obligations under the agreement.
The
parties had previously attended mediation and entered into a final, binding and
enforceable agreement which was signed by a Mediator from the Ministry of
Business, Innovation and Employment.
The
ERA ordered the breaching party to comply with the Record of Settlement however
noted that some of the clauses in the agreement could not be enforced as the
ERA has no jurisdiction to order compliance against third parties who are not
party to a Record of Settlement.
The
ERA was also concerned over the fact that there were no timeframes in which
certain actions had to be completed under the agreement. This also made some
clauses in the agreement difficult to enforce. Accordingly, the ERA refused to
impose any penalties upon the party in breach of the agreement.
Alan Knowsley
Employment Lawyer Wellington
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