Employment Court makes compliance order after party breaches out of court settlement agreement

Parties to an employment dispute reached an agreement to settle the matter outside of Court. Under the agreement, party A was required to pay party B the sum of $300,000 in accordance with an agreed payment plan. The parties agreed that the Court would make a compliance order if party A failed to make payment on time.

The Employment Court was required to make a compliance order directing party A to pay party B $40,000 in accordance with the payment plan. This was the seventh compliance order required in this case. The Court noted that if party A failed to pay, party B could enforce payment of the debt.

The Court also ordered party A to pay party B over $2,000 in interest on the unpaid sum from the date of the default until the date of the compliance order plus over $4,800 for legal costs and disbursements, in accordance with the settlement agreement.

Alan Knowsley
Employment Lawyer
Wellington