Employer penalised for breach of mediated settlement agreement…

The Employment Relations Authority has fined an employer $2,000 for failing to adhere to the terms of a mediated settlement agreement.

During the course of employment an issue had arisen between an employee and the employer.  To resolve that they attended mediation and agreed on a settlement whereby the employer was to pay the employee $12,500 by weekly instalments of $500.

The employer paid some of the weekly instalments but failed to pay $7,000 of the agreed sum.

The ERA ordered the employer was to pay the balance immediately and also imposed the $2,000 penalty for the deliberate breach of the mediated agreement.

If you agree to terms at a mediation and those terms are recorded in the mediation agreement then you must adhere to them.  Failure to do so can result in a penalty from the Employment Relations Authority.

Alan Knowsley

Employment Lawyer Wellington