New financial penalties for employers who refuse to pay tribunal awards

The system of financial penalties for employers who do not pay awards ordered by an employment tribunal or settlement sums under the ACAS COT3 procedure is now in place.

The penalty, which is to be paid to the Secretary of State, is set to be 50% of the award due, at a maximum of £5,000. Again, the penalty will be halved if it and the unpaid sum are paid within 14 days. is now in place. The maximum penalty for a failure to pay an award is £5,000.


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