The Employment Court has fined an employer for breaching a mediated settlement agreement. 

The Employer and Employee had agreed that neither would disparage the other and that the Employee was free to apply for other positions in the future.

The Employer then put on its file a notation that it would not re-employ the Employee.  This was held by the Court to be a disparaging comment in breach of the agreement and that the Employer had never intended to comply with the agreement.  The Court felt it necessary to impose a sentence that would mark society’s displeasure with such behaviour.  The Court also increased the fine because the Employer tried to hide the offending documentation from the Court.

75% of the fine was ordered to be paid to the Employee.

Alan Knowsley
Employment Lawyer
Wellington