The Enterprise and Regulatory Reform Act 2013
“The Enterprise and Regulatory Reform Act 2013 introduced a new power for tribunals to order a losing employer to pay a financial penalty of up to £5,000 where the case has “aggravating features”.
Against a background of a government doing its best to undermine employment rights across the board, there was much trumpeting from Westminster about how “rogue employers” would get some harsh treatment too.
We were always suspicious that this was too little, too late. Was it really going to deter employers? Why was the money going to the state, not the injured party? Would Tribunals want to take on the role of “fine imposition”?
It turns out our suspicions were not without merit.
On 8 June 2015, Caroline Lucas MP asked how many financial penalties have been imposed.
The Government’s reply: three fines have been imposed to date.
Three.
Thousands of ET cases, and the new power has been used three times.
It gets better.
Only one of the three has been paid.”
If you would like further information or have any questions, please contact a member of our employment rights team.
