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.