From 6 April 2014, employers who are found by an employment tribunal to have breached an employee’s employment rights will be liable to pay a financial penalty of up to 50% of the award the employment tribunal makes.
The financial penalty in any case will be a minimum of £100 and a maximum of £5,000. A tribunal can only impose the financial penalty where there is an ‘aggravating feature’ involved. The legislation does not define aggravating features, but government guidance suggests that a financial penalty will be appropriate where unreasonable behaviour by the employer (which might include negligence or malice) led to the claim being made.
Just like a parking ticket, the employer is entitled to a 50% discount on the financial penalty if it is paid within 21 days.