A Whakatane man who gave an employee a "free pass" to sleep with his wife then tried to join in on the action.

The man secretly filmed his wife and employee in the bedroom before entering the room to try to join in on the action but the employee left, Fairfax reported.

The details of the encounter were heard in Whakatane District Court yesterday where the boss and his wife were sentenced for making an illicit recording. According to Stuff they were given two months' home detention and ordered to pay the victim $2000.

Judge Louis Bidois told the pair he did not think the situation would ever be satisfactorily explained, Stuff reported.

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"You conspired against the victim to have sexual intercourse with you in group sex. You arranged the victim to stay at your house on this specific occasion the victim was told he had a free pass to have sex with [the wife].

"Cameras in the bedroom connected by cellphones captured the event."

The man had agreed to sex with the woman but never agreed to the videotaping and only found out about it when his boss came into the room and offered a threesome.

Police suggested the video was used as leverage against the employee.

After the incident the couple turned against their employee.

"There was a breach of trust in that the victim was their employee," Bidois said according to Stuff.

"I have a responsibility to ensure people do not get video recordings in intimate ways without their knowledge. The fear is these will end up on the internet."

All the tapes and recordings are being destroyed.