Oral deal binding, court decides

An oral individual employment agreement is valid and enforceable, says the Court of Appeal.

An Auckland art gallery had argued in the Employment Court that an oral agreement between it and employee Emma Weston was not intended to be binding until it was put into writing.

The Employment Court found in favour of Ms Weston in April last year, allowing her appeal from an Employment Relations Authority decision and awarding her more than $16,000, plus interest.

The art gallery, Warwick Henderson Gallery, argued in the Court of Appeal that the employment agreement of an employee not covered by a collective agreement must be in writing to be binding.

The Court of Appeal dismissed the appeal and awarded costs of $8000 to Ms Weston.

- NZPA