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Unpaid Awards and Settlements - Penalty Notices

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According to a written answer in Hansard, the Government is intending to bring the new 'unpaid award penalties' into force from April 2016.

Contained in the new ss37A-37Q of the Employment Tribunals Act 1996, the Government will issue a 'warning notice' if any awards or settlements remain unpaid. If the monies remain unpaid, then the employer will be subject to a 'penalty notice' of 50% of the outstanding amount, subject to a £100 minimum and £5,000 maximum. The money is payable to the Secretary of State, not the employee.

This is additional to the financial penalty which has been payable in claims presented after April 2014, where 'aggravating features' exist, when a tribunal can order the employer to pay an additional 50% (subject to the same maximum and minimum).