ERA orders over $17,000, including penalties after deliberate breach of mediated agreement
The Employment Relations Authority (ERA) ordered a former employer to pay over $17,000, including penalties and interest, after he breached a settlement agreement by making late payments before stopping payments entirely, despite initially agreeing to weekly installments.
The worker had entered a mediated settlement to resolve her employment dispute through regular weekly payments rather than pursuing formal proceedings.
The employer initially made payments, but they became routinely late before ceasing altogether, forcing the worker to seek enforcement through the Authority.
The worker and employer entered a Record of Settlement countersigned by a mediator, regarding the ending of employment.
The settlement provided for payment of $8,000 to the worker and $10,000 to her representative for costs, both to be paid over time at $75 per week.
The settlement included a provision for the repayment rate to increase over time.
The agreement also specified that if breached, the full outstanding amount would become payable immediately, together with further costs and interest.
The worker's evidence indicated she was willing to enter this compromise agreement rather than continue with proceedings, accepting part payment of sums over time rather than requiring immediate payment.
The ERA found these payment terms were beneficial to both parties,...
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