The Employment Relations Authority has ordered an employee to repay $27,600 she was overpaid while on unpaid leave.

The employee was aware that she was receiving her wages payments when she was supposed to be on unpaid leave, but failed to tell the employer of the overpayment.  This was held by the ERA to be a failure of good faith, as she was obliged to be active, constructive and communicative with the employer.  Because she had failed to tell the employer of her overpayment they were out of pocket for many many months, so in addition to having to repay the overpayment, plus interest, the employee was also ordered to pay a penalty of $2,000.


Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Alan Knowsley

Employment Lawyer