Financial penalties in employment tribunals
Financial penalties in employment tribunals

The following Employment practice note provides comprehensive and up to date legal information covering:

  • Financial penalties in employment tribunals
  • Aggravating features—power to award a financial penalty
  • Relevant claims
  • Worker
  • Employer
  • Aggravating features
  • How the financial penalty is calculated
  • Multiple claims
  • Other claims where a financial award is made
  • Other claims where no financial award made
  • More...

Financial penalties in employment tribunals

Coronavirus (COVID-19): All proceedings in employment tribunals in England, Wales and Scotland during the coronavirus (COVID-19) pandemic and until further notice are operating in accordance with the Presidential guidance and directions now issued, which profoundly affect normal practice. See Practice Note: Operation of employment tribunals during the coronavirus (COVID-19) pandemic for full information.

Prior to 6 April 2014, if an employment tribunal found in favour of a claimant, it had only the power to award various remedies depending on the type of claim, and to award costs (see Practice Note: Costs in the employment tribunal). It had no power to penalise the respondent employer for the breach of employment law itself.

From 6 April 2014, section 12A of the Employment Tribunals Act 1996 (ETA 1996) gave employment tribunals the power to order a financial penalty to be paid by a respondent employer where a breach of a worker's rights has aggravating features. For breaches beginning on or after 6 April 2019, the maximum financial penalty is now £20,000 (see: How the financial penalty is calculated below).

From 6 April 2016, ETA 1996, s 37F gave enforcement officers appointed or authorised by the Secretary of State the power to issue financial penalty notices against employers who fail to pay an employment tribunal award or settlement sum agreed following Acas

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