Cases presented to an employment tribunal on or after 6 April 2014 may result in penalties against the Employer if the case is unsuccessful.

The tribunals will have the power to order that an employer who is unsuccessful at tribunal pay a financial penalty, on top of any compensation due to the successful claimant, when the employer’s breach of employment law has “one or more aggravating features”.

Consultation papers suggest that this would include unreasonable behaviour such as neglect or malice. If the tribunal makes an award of compensation, the amount of the financial penalty will be 50% of the award granted to the employee. The penalty is subject to a minimum threshold of £100 and an upper ceiling of £5,000. However, employers will qualify for a reduction of 50% if they pay the penalty within 21 days.

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