This new role could play a very useful part in employment relations because it may be a quicker, more efficient way of dealing with low level disputes and effectively reduce the number of matters going to the Employment Relations Authority.
Mediators certify terms of settlement for personal grievances. This is known as a “Record of Settlement” and it verifies a settlement between an employee and their employer.
In the past parties have often agreed to “lump” everything together in one financial settlement. So in other words if there were holiday pay owed or some outstanding wages, then what might happen is the parties agree to combine the holiday pay and compensation into one non taxable lump sum.
The new legislation will mean that mediators “must not sign terms of settlement in which a party agrees to forgo all, or part of the party’s minimum entitlements”. So if you are settling a personal grievance, you need to ensure that any outstanding holiday pay or wages are paid (with the tax paid as well!!!!)
Mediators have now been given the power to discuss employment problems with a party to the problem, at an early stage, without any representative of that party being present. We consider that this is pretty much making “lawful” what has already been happening, with the consent of the representatives. But, this new section allows a mediator to cut out the representative altogether and speak to a party direct so long as the party makes a request for this to happen.
In the final of this series of these articles on changes to Employment Law, we discuss the Authority’s power to impose penalties and important changes to the Holidays Act 2003
