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“Full & Final” settlement held not full & final …

A signed agreement between an employer and their employee which provided for a payment in full and final settlement of all issues between the parties has been held by the Employment Relations Authority to not fully and finally settle all the employee’s claims. 

The employee alleged that she understood the settlement only to refer to the issue she had raised at that time with the employer, and not to a personal grievance she had not formally raised.   The employer knew about the potential claim and wanted to settle it. 

Unfortunately, they did not expressly say that any other personal grievance would also be settled by the payment.  The employer has therefore settled and paid, but now faces another claim they thought they had already paid for.

The minefield that is employment law has just got even more complicated.  If you need help call me for an initial chat on (04) 473 6850.