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Employment Relations Act 2000

Institutions - Mediation services

150A: Payment on resolution of problem

You could also call this:

“When a problem is solved, money must be paid directly to the other person, not to someone speaking for them.”

When you and another party agree on how to solve an employment problem, there might be a payment involved. If this happens, the person who needs to pay must give the money directly to the other person. They can’t give it to someone else who represents that person. The person getting the money isn’t allowed to receive it any other way.

If the payment isn’t made in this way, it’s treated as if it wasn’t made at all. This means it doesn’t count as a proper payment under the law.

There are two times when this rule doesn’t apply. First, if the person who should get the money is getting legal aid for the employment problem. Second, it’s okay for the payment to be made to the other person’s lawyer.

If you want to know more about legal aid, you can check the Legal Services Act 2000.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM60924.

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Work and jobs > Worker rights
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150: Decision by authority of parties, or

“When people agree, a special helper can make a final decision to solve their problem”

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151: Enforcement of terms of settlement agreed or authorised, or

“Rules about making sure people follow what they agreed to or were told to do after talking things out”

Part 10 Institutions
Mediation services

150APayment on resolution of problem

  1. Any payment by one party to another, required by any agreed terms of settlement under section 149(3) or decision under section 150(3), must be paid directly to the other party and not to a representative of that party, and the party receiving the payment may not receive, or agree to receive, payment in any other manner.

  2. For the purposes of this Act, a payment that does not comply with subsection (1) is to be treated as if the payment has not been made.

  3. Subsection (1) does not—

  4. apply if the party to whom the payment is required to be made is receiving or has received legal aid under the Legal Services Act 2000 for any matter related to the employment relationship problem giving rise to the mediation; or
    1. prevent a payment being made to the other party's solicitor.

      Notes
      • Section 150A: inserted, on , by section 53 of the Employment Relations Amendment Act (No 2) 2004 (2004 No 86).