Financial Penalties

Stuart Swan
8th Mar 2013

This week debate in The House of Lords continues as a series of government-proposed amendments regarding Financial Penalties currently contained in the Enterprise and Regulatory Reform Bill (ERRB) has been approved.

UK Money


The ERRB currently contains provisions which give an employment tribunal the power to impose a financial penalty on employers who have lost the claim against them if it is determined that there have been ‘aggravating features’ to the case. It is currently unclear what is meant by aggravating features. However, the House of Lords has now approved an amendment to the ERRB which provides that prior to imposing a financial penalty the tribunal must factor into its considerations the employer's ability to pay.


This penalty is to be set at a minimum of £100 and a maximum of £5,000. However, where there are multiple claims against one employer, the £100 minimum will not apply and the tribunal will have discretion as to what level of financial penalty is appropriate in the circumstances.


Where a penalty is imposed, it will not be paid to the claimant but to the Secretary of State.


Our main article about ERRB changes can be found here.


Further information on the House of Lords amendments can be found here.

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