Financial penalties for employers who lose at tribunal to be introduced

The power to order an employer who has lost at tribunal to pay a financial penalty of up to £5,000 to the Secretary of State, where the case has “aggravating features“, is due to come in to force in April 2014.

This proposal has sought to redress the balance with regard to the recent ‘employer-friendly’ solutions to improving the employment tribunal system.

Circumstances in which penalty can be ordered:

  • where the employer’s breach has “one or more aggravating features”.
  • even if a financial award has not been made to the claimant.
  • involving multiple claims although multiple claims in respect of the same act and the same worker are treated as a single claim.

Amount?

  • The minimum amount of the penalty is £100. The maximum is £5,000.