(1) This section applies if:
(a) the parties to a proceeding reach a settlement at mediation; and
(b) the mediator is not a member.
(2) Any settlement under this section:
(a) must not be inconsistent with the relevant Act; and
(b) may be rejected by the Tribunal on the basis that the settlement may prejudice a person who was not represented at the mediation but who has a direct or material interest in the matter.