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Section 149 Settlement Agreements: Avoiding Drafting Conflicts

A drafting problem in a mediated s 149 settlement where clauses about when agreement became binding did not align with a separate requirement for mediator sign-off, creating an avoidable enforcement dispute.

Matched passage: Section 149 settlement agreements: the drafting trap This page is a short practical warning about s 149 settlement agreements and a drafting conflict that can create an avoidable dispute later.
Menzies v Corrigan [2025] NZEmpC 186 - employment advocate and employment lawyer conduct

Menzies v Corrigan concerned an ERA compliance order that required a company director personally to take steps to fund a liquidated employer so grievance remedies could be paid. The challenge raised questions about s 137(2), separate corporate personality and the reach of compliance jurisdiction.

Matched passage: By December 2024 this was therefore not just a generic warning that imprisonment existed somewhere in the Act.
Christmas party misconduct: when employers can discipline or dismiss

Employment-law lessons from misconduct at Christmas parties and other work functions, including alcohol, off-duty conduct, investigations and when discipline or dismissal may be justified.

Matched passage: Prior to dismissal K had spoken to the other employees assuring them they would be fine and could only expect a warning.
Fatima Fahmy v Minimarc Childcare Centre Inc [2026] NZERA 585 - performance dismissal lacked objective assessment

Minimarc Childcare dismissed ECE teacher Fatima Fahmy for performance after its centre manager remained the principal evaluator despite known relationship and bullying complaints. The ERA found the assessment was not sufficiently objective and ordered reinstatement, lost wages and $25,000 compensation.

Matched passage: Informal guidance, a 2022 warning and later performance-management plans addressed matters including following instructions, communication with children and the quality of written learning material.
James Honotapu v Atlas Fibrous Plaster Company Limited [2026] NZERA 587 - absenteeism dismissal followed an unfair process

Atlas had legitimate concerns about James Honotapu's persistent absenteeism, but did not warn him that a meeting could end in dismissal. The ERA found the dismissal unjustified and ordered $8,574 after reducing lost wages and compensation by 50 percent for contribution.

Matched passage: But it invited him to a meeting without warning that dismissal was possible, then decided during the meeting to end his employment.
Valerie Leech v Electrical Importing Co Limited [2026] NZERA 553 - employment was agreed before the 90-day trial was signed

Electrical Importing Co agreed Valerie Leech's core job terms and told her when to start before presenting a written employment agreement containing a 90-day trial clause. It later relied on that clause to dismiss her.

Matched passage: Why this case matters Leech v Electrical Importing Co Limited is a warning against leaving the employment agreement until the employee's first morning.
LUO v BAZ [2026] NZERA 549 - genuine redundancy undone by inadequate consultation and redeployment

BAZ had genuine commercial reasons to make Luo's role redundant, but the employee was not given a fair opportunity to engage with the proposal or meaningful redeployment possibilities before the decision was made.

Matched passage: LUO received no proper proposal, relevant financial information, timetable or clear warning that her position was at risk.

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