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Employer penalised for breach of mediated settlement agreement…
The Employment Relations Authority has fined an employer $2,000 for failing to adhere to the terms of a mediated settlement agreement.
During the course of employment an issue had arisen between an employee and the employer. To resolve that they attended mediation and agreed on a settlement whereby the employer was to pay the employee $12,500 by weekly instalments of $500.
The employer paid some of the weekly instalments but failed to pay $7,000 of the agreed sum.
The ERA ordered the employer was to pay the balance immediately and also imposed the $2,000 penalty for the deliberate breach of the mediated agreement.
If you agree to terms at a mediation and those terms are recorded in the mediation agreement then you must adhere to them. Failure to do so can result in a penalty from the Employment Relations Authority.
Alan Knowsley
Employment Lawyer Wellington
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