Penalty notices for unpaid awards and settlements

Louise Walker
Legal Director
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The Department for Business, Innovation and Skills has confirmed that section 150 of the Small Business, Enterprise and Employment Act 2015, which amends the Employment Tribunals Act 1996 to include new provisions imposing financial penalties on employers who fail to pay an employment tribunal award, is expected to come into force in April 2016.

Under these rules the employer will be issued with a ‘warning notice’ where an award is outstanding and if the award remains unpaid, a ‘penalty notice’ will be issued. The penalty, payable to the Secretary of State, will be 50% of the outstanding amount subject to a £100 minimum and £5,000 maximum.

Topics: Employment Tribunal