LRD guides and handbook May 2019

Law at Work 2019 - the trade union guide to employment law

Chapter 14

Financial penalties for ‘aggravated breach’ 





[ch 14: page 486]

Tribunals can impose an extra penalty on employers for a breach of employment rights with “one or more aggravating features” or “unreasonable behaviour” (section 12A, Employment Tribunals Act 1996). Penalty payments cannot be below £100 or over £20,000 (or £40,000 if the tribunal also makes an award to the worker) and will reduce by 50% if paid within 21 days. The penalty goes to HM Treasury, not the claimant. Very few penalties have been ordered. (The maximum penalty increased from £5,000 to £20,000 with effect from 6 April 2019.)