Penalty charge notice — tribunals’ power to fine losing employers to start in April

The section in last year’s Enterprise and Regulatory Reform Act that gives tribunals the power to impose a financial penalty on an employer found to have breached a claimant’s employment rights is coming into force for claims started on or after 6 April. The new power applies widely, to any claim involving an employer and a worker.

The fine can only be levied if the tribunal considers that the employer’s breach has ‘aggravating features’. And even if there are aggravating features, there is no obligation on the tribunal to issue a fine. There is no definition of ‘aggravating features’; this is left to the tribunal’s discretion…

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