Wednesday, June 19, 2013

FINANCIAL PENALTIES FOR EMPLOYERS

At some point in the next year, although the date is not yet clear, provisions come into force which will allow tribunals to fine employers for the way they breached workers' rights.

It's all about "aggravating factors". This term has yet to be defined, but we can take it for now that it means what it says: the breach was made worse by something the employer did or didn't do. How much will a guilty employer have to pay? Between £100 and £5,000 depending on the circumstances. Pay within 21 days and the fine is halved.

Lawyers are already poised to thrash out the meaning of "aggravating factors" and it will take a few years before caselaw makes it clear as to what qualifies and what doesn't. But we think reasonable employers are unlikely to experience problems.

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