Financial penalties imposed on employers who breach employment rights

As part of The Enterprise and Regulatory Reform Act 2013, power has been granted with effect from April 2014, for tribunals to be able to levy a financial penalty against employers that are in breach of employment rights where the breach has one or more aggravating features.

If the tribunal does make an award of compensation, the amount of the penalty will be 50% of the award. The penalty will be subject to a minimum threshold of £100 and have an upper ceiling of £5,000. Employers will qualify for a reduction of 50% if they pay the penalty within 21 days, thereby giving an incentive for employers to pay the award in a speedy fashion!