Start date for new ‘unpaid award’ penalties for employers

The government says it wants the new penalties for employers who fail to pay tribunal awards to come into force from April this year.

The penalties relate to awards made in employment cases. If an employer fails to pay the award or settlement, they will receive a warning notice.

If they still fail to pay they will receive a penalty notice for 50% of the amount outstanding. This will be subject to a £100 minimum and a £5,000 maximum.

The Minister for Skills and Equalities, Nick Boles, made the announcement about the start date in response to a written question in parliament. However, he said he “expected” the new system to start in April so it is still subject to confirmation.

We shall keep clients informed of developments.

Please contact Robert Bedford if you would like more information about the issues raised in this article or any aspect of employment law.