The Employment Relations Authority has dismissed an employee’s claim that his employer owed him salary for three weeks in lieu of a notice period.

The employee signed an employment agreement which contained a provision that a three week notice period would be required upon his resignation.

When the employee decided to resign, he and his employer entered into settlement negotiations around how the resignation would work. This settlement included details such as dates, compensation and other factors regarding the ending of the employment relationship.

After his employment ended, the employee raised the claim to recover payment for the three week notice period as specified in the employment agreement.

When deciding on whether the employee was entitled to be paid for the notice period, the Authority had to determine whether the settlement agreement fulfilled the purpose of bringing comprehensive resolution to any and all employment disputes.

The Authority determined that the employee was not entitled to be paid for the notice period, as the settlement agreement was expressed to be in full and final settlement of the employment issues and referred to resolving all matters relating to the employment relationship between the employee and the employer.

The Authority also decided that the circumstances surrounding the agreement made it clear that the settlement was negotiated with the understanding that its contents would bring an end to the employment relationship and any issues that may be present within it.

These factors led the Authority to the conclusion that the employee was not entitled to three weeks of pay, and the employee received no compensation.

If there is confusion around settlement agreements and how they work, it is wise to seek advice from a professional with experience in the area.


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