The Employment Relations Authority has ordered an employer to pay $3,000, after it breached a Record of Settlement, which included a clause that the employer and employee would not make disparaging comments about one another after the Record of Settlement was signed.

The employer posted harmful comments about the former employee on Facebook. This caused the employee to raise it with his new employer and subsequently led to the employee leaving his new employment.

The ERA ordered the employer to pay a fine of $3000. The ERA said it was to serve as a deterrent to others.

This is a timely reminder that a Record of Settlement is a legally binding agreement and once it is signed, the terms must be adhered to. If a party does not comply with the terms, penalties can be imposed by the ERA such as in the case above.

Ben Ruback

Employment Lawyer

Wellington