Everyone
Records of settlement
If you come to an agreement about an employment issue, you can formalise it in a ‘record of settlement’. Once reviewed and signed by Employment Mediation Services, this document is legally binding.
What is a record of settlement?
A ‘ The formal record of what parties have agreed once they’ve reached a resolution about an employment dispute or problem. To make sure it can be enforced, a record of settlement should be written down and given to Employment Mediation Services to check and sign. The individuals or organisations involved in any employment-related negotiations or agreements, for example, an employer and an employee.
A record of settlement can be created in 2 ways.
- Following a
mediation , a mediator writes down the agreed terms in a record of settlement and has both parties sign the document.A confidential and safe way for employers and employees to work through their issues and develop solutions with the help of an independent mediator. Mediation is usually voluntary, but in some cases can be directed by the Employment Relations Authority.
- The parties send a record of settlement they have drafted to Employment Mediation Services to have it signed by a mediator or other authorised person.
The mediator or other authorised person will check that the record of settlement is enforceable and complies with the law. They will:
- explain to the parties involved the effects of the mediator or other authorised person signing the agreement, which are that:
- the terms will be final, binding and enforceable
- the terms cannot be brought before the
Employment Relations Authority orThe tribunal established under the Employment Relations Act to resolve employment relationship problems.
Employment Court for any reason except to enforce themThe court that hears and determines cases relating to employment disputes. It also hears challenges to determinations of the Employment Relations Authority and questions of interpretation of law. It has initial jurisdiction over matters like strikes and lockouts.
- the terms cannot be cancelled
- there can be penalties if either party breaches the terms
- confirm with the parties involved that they want the mediator or other authorised person to sign the agreement and understand what that means
- check that in making the agreement, neither of the parties involved has agreed to give up any minimum entitlements.
Employee rights and responsibilities
In most cases the mediator (or other authorised person) will speak to the parties, but where this is not practical, they may email. The mediator (or other authorised person) does not provide either party with legal advice. If you are unsure about the content or effect of a record of settlement, you may wish to seek legal advice before signing it.
What needs to be in a record of settlement
If you are sending Employment Mediation Services a record of settlement to sign, it must show:
- that the parties understand what the agreement means, and that they want the mediator or other authorised person to sign it
- that in reaching the agreement, neither party has agreed to give up any minimum entitlements, like holiday pay or
minimum wage The lowest amount an employee can be paid per hour. There are 3 types of minimum wage: adult, starting-out and training. There is no minimum wage for employees younger than 16 years old.
- the correct legal names of the parties (those on birth certificates or the Companies Register / Charities Register / legal documents, rather than trading names or nicknames)
- the signatures of both parties.
This template will help you to include the right information in your record of settlement.
Submitting a record of settlement
To submit a record of settlement online, select the link below. You will need to have an account and login with RealMe (the Government’s identification verification system) and with Resolve (Employment Mediation Services’ online service).
Employment Mediation Services(external link)
If you need help submitting online
Our ‘How to submit employment records of settlement online user guide’ can help you with setting up your account, submitting your record of settlement, and managing other member accounts in your organisation.
How to submit employment records of settlement online - quick user guide [PDF, 900 KB]
Alternatively, you can call us on 0800 20 90 20 or post a paper copy of the record of settlement to:
Mediation Services Auckland
PO Box 92061
Victoria Street West
Auckland 1010
Enforcing a record of settlement
If one party does not do what is required of them under the record of settlement — for example, make a payment — the other party can apply to the Employment Relations Authority (ERA) or the Employment Court for enforcement of the agreement.
Before applying to the ERA, it’s a good idea to contact the mediator (or other authorised person) who signed the record of settlement to see if they can help encourage parties to comply with the agreement.