Financial penalties paid by an employer

From 6 April 2014, tribunals can levy an additional financial penalty on employers who breach employment rights, where that breach has “one or more aggravating features” or involves “unreasonable behaviour” (section 12A, Employment Tribunals Act, ERRA 13). Awards cannot be below £100 or exceed £5,000 and will be reduced by 50% if paid within 21 days. The penalty is not paid to the claimant, who has suffered loss as a result of the employer’s behaviour, but instead to HM Treasury.