Settlement Breach Costs Employee

Posted by Madeleine on 9 November 2015

An employer recently took an action against a former employee when word of the $4,500 confidential settlement with the former employee started spreading through the office.

The former employee sent a Facebook message to a former colleague boasting of a confidential settlement he received when he resigned. He stated that he "got paid a lot of money to leave even though I was going to quit the next week". He also made derogatory statements about his former colleagues, his former manager and the company.

The former employee claimed that he was referring to his holiday pay out, not his additional pay out in the Facebook message and that he had been provoked by the company.

The Employment Relations Authority found that the former employee had clearly breached the confidentiality agreement surrounding his pay-out and ordered him to pay the employer $3,000 for breaching confidentiality of settlement.

This decision sends a clear message about the importance of honouring the confidentiality aspects of settlements.