What happens if I ignore a Record of Settlement or Employment Relations Authority determination?
Times are tough for many small businesses, and we understand that sometimes there just isn’t the cash flow available to make large settlement or Authority-ordered payments all in one lump sum. However, what happens if you, as an employer, decide not to comply with a Record of Settlement or a determination of the Authority? The Authority has been dealing with a spate of such cases recently, and while it can be a frustrating process for the unpaid employees, one thing is clear: these matters do not go away if you ignore them.
The Authority has made a compliance order in Satija v Epiphany Donuts Newtown Ltd [2025] NZERA 383, where the employer had entered into a Record of Settlement, and then failed to make payments on time. In Satija, the Authority had issued a determination ordering...