Jo Swinson, Minister for Employment Relations, has posted on Twitter that the Government plans to implement S.16 of the Enterprise and Regulatory Reform Act 2013 on financial penalties for employers in April 2014. Under S.16, where an employment tribunal decides that the employer has breached any of the worker’s rights to which the claim relates, and the breach has one or more aggravating features, the tribunal may order the employer to pay a penalty to the Secretary of State (whether or not it also makes a financial award against the employer). If the tribunal makes just a non-financial award (e.g. an order for reinstatement) then any financial penalty imposed must be at least £100 and cannot exceed £5,000. If the remedy awarded by the employment tribunal to the claimant is a compensation award, then any financial penalty imposed must be set at 50% of the amount of the claimant’s financial award, subject to a minimum of £100 and a maximum of £5,000.
This provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, we cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.
