Checkout chat costs former employee $2500

A former Warehouse employee has lost her claim to compensation by breaching a confidentiality agreement. Photo / Supplied.

A chat with a former co-worker has cost an employee at The Warehouse any compensation.

The Employment Relations Authority (ERA) ruled Diana Henry had breached the terms of a mediated settlement with The Warehouse by disclosing details to the former co-worker and would therefore lose the agreed compensation of $2500.

A counterclaim by The Warehouse seeking a penalty of $5000 from Ms Henry was rejected by the ERA.

Ms Henry had been employed by The Warehouse at its Motueka store. When the employment ended in October last year, Ms Henry raised a personal grievance claim against the company.

But a mediated settlement was reached with The Warehouse agreeing to pay Ms Henry $2500 compensation in full and final settlement of her grievance.

The two parties agreed to keep the terms and conditions confidential.

But the sum was never paid after the company said Ms Henry breached the settlement by coming back to the store and telling a checkout operator she had "won'' her case against The Warehouse.

When confronted Ms Henry denied she disclosed any facts to her former co-worker and suggested the store manager "had it in for her'' and had "spread the word''.

The ERA ruled Ms Henry did breach the terms of her mediated settlement, disqualifying her from receiving compensation but penalising her beyond her loss of the settlement proceeds was not necessary and rejected The Warehouse's counterclaim.

- NZPA