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What is a record of settlement?

Wednesday 8 May, 2019

When an employment dispute between an employer and employee is settled in a mediation, the details of the agreement are recorded and signed in a record of settlement.

A record of settlement is created by the parties to the dispute themselves, or by the mediator after mediation, and then given to Employment Mediation Services to be signed off by a mediator.

What happens after a record of settlement has been submitted?

Once a record of settlement has been submitted, a mediator will contact both parties to:

  • Discuss the settlement details, and what it means;
  • Explain the effects of signing;
  • Make sure the parties want the mediator to sign off the agreement;
  • Check that in the agreement, neither party are agreeing to give up any minimum entitlements.

Can I talk about the mediation or what was agreed?

No. What happens during a mediation and what was agreed to cannot be discussed outside of the mediation unless the parties agree otherwise.

Often a record of settlement will contain a “non-disparagement” clause, which means that neither party can say bad things about the other in the future.

It is very important not to breach a record of settlement, or to talk badly about the other party (online or in person) as you may risk having penalties imposed on you.

Make sure you understand the “non-disparagement” clause in your record of settlement and how it may affect you.