The Employment Relations Authority has fined an employee
$3,000 and ordered him to pay $1,800 costs after the employee breached the
terms of a confidential settlement.
The settlement agreement between the employee and his
employer contained a confidentiality clause and a non-disparagement
clause. Immediately after the settlement
the employee told others he had won and been paid a substantial sum of money by
his employer. The employer heard about
this and through its lawyer notified the employee’s lawyer that the employee
should cease breaching the agreement. A
short time later in a public place the employee was disparaging the employer
and other employees.
The employer therefore sought a compliance order from the
Employment Relations Authority and a penalty.
The ERA found that the breaches were deliberate and imposed the $3,000
fine on the employee and also put in place a compliance order. A breach of the compliance order could result
in further penalties on the employee.
Alan
Knowsley
Employment
Lawyer Wellington
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