Penalties for Unpaid Tribunal Awards

David Reid
David Reid
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In a bid to enforce payment of tribunal awards or settlement sums, the government has introduced new regulations imposing tougher penalties on employers who fail or refuse to pay such awards.

From 6 April 2016, employers can be given a penalty of 50% of the sum awarded, up to a maximum of £5,000. The new rules allow for the penalty to be reduced by half if the payment of the penalty (and the award) is made within 28 days of the penalty notice. The recipient of a penalty will have a right of appeal.


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