In April, eight of the 11 staff at Topkids made written complaints about Ms Blylevens and Kidicorp also received verbal complaints from staff and parents.
Business manager Lynda Ewing arranged to meet with Ms Blylevens to give her feedback on the investigation into the complaints. Ms Blylevens was told the meeting was not disciplinary but Ms Blylevens said she would not attend unless her advocate, Ms Rolston, was also at the meeting.
Ms Blylevens then went on sick leave from April 9 to May 5.
On May 2, Ms Rolston 'liked' and commented on a post referring to Kidicorp as "striking again" through "allegations of bullying".
Ms Rolston implied the company provided an unsafe environment and parents might want to "seriously rethink the level of care [their children] can receive".
Ms Blylevens commented about the article being interesting and as a parent "it's good to be informed".
On May 4, Ms Blylevens also 'liked' a post from Ms Rolston referring to Kidicorp as creating a 'toxic' environment, questioning the care children received.
Both of Ms Blyleven's 'likes' identified her as a Kidicorp employee and she was expected to return to work the next day.
Ms Larmer described Ms Blyleven's actions as her practically standing outside the centre she managed handing out copies of Ms Rolston's derogatory articles about Kidicorp while telling people 'here is an interesting article - it is good to be informed'.
Ms Larmer said she found Ms Blyleven's actions to be a "fundamental breach of an employee's duty of fidelity".
Ms Blylevens denied she did anything wrong and Ms Rolston said she was 'just having a rant'.
Although the Facebook postings happened outside of work hours, the ERA found there was enough casual connection between Ms Blyleven's conduct and her employment for Kidicorp to conclude serious misconduct had occurred.
Ms Larmer found Ms Blylevens to be 'arrogant' when Kidicorp, through the disciplinary meeting, asked Ms Blylevens to remove her Facebook likes and comment.
She sat in agreement while Ms Rolston told Kidicorp it had to 'ask her nicely' by saying 'please', Ms Larmer said.
The ERA ruled that Kidicorp's actions were fair and reasonable and Ms Blyleven's unjustified dismissal claim did not succeed.
The two parties are now expected to negotiate costs, under ERA stipulation.
Kidicorp chief operations officer Fiona Hughes said the company had no option but to follow the procedure through to the end.
"We were left with no options. We felt the slanderous statements that were 'liked' seriously undermined the good work that our centre staff have done, as well as making their situation at the centre very difficult," she said.
"Kidicorp was very disappointed to go through this process but felt there was no alternative. We take very seriously our commitment to protect and stand behind our staff and parents.
"We are relieved that this episode is over. Now we can continue to focus on our children and build relationships in our beautiful centre at Topkids Waihi Road."
Ms Blylevens and her counsel, Warwick Reid, could not be reached for comment.