The Government has announced its intention to bring in penalty notices for employers who fail to pay Employment Tribunal awards. This has been a problem for many claimants, who’s only recourse is through the County Court to enforce the judgment.
Under the new proposals, a warning notice will first be issued and if the money remains unpaid, then the employer will have to pay a penalty of 50% of the outstanding amount owing. There will be a minimum of £100 and a maximum of £5,000.
This is in addition to the penalties that employers may be ordered to pay if there are ‘aggravating factors’ in their case.
Employers be aware – if an employee makes a claim against your company you must take it seriously and pay up as ordered if you want to avoid penalties. There would also be interest added for late payment, which means that there would be more to pay.
If you need any help or advice on this, please do give me a call.