Financial penalties for Employers – in force from 6 April 2014

From 6 April 2014 Employment Tribunals will have the power to fine an employer up to £5,000 (which is payable to the government) if they lose a claim and their case has “aggravating features”, such as unreasonable behaviour or malice by the Employer. The Government state that it is not intended to punish genuine mistakes, but it is questionable how far this will protect employers, as most employment disputes revolve around whether or not an employer’s behaviour was “reasonable”. the result of the introduction of this fine may be that employers will feel forced into settling claims for fear of a fine if they lose.

As always we advise Employers to get advice before they do anything that could result in a claim being brought against them by am Employee.