New Financial Penalty Scheme for Unpaid Tribunal Awards

As from 6th April 2016 there will be a new scheme for penalising employers who fail to pay tribunal awards or settlement sums under a COT3.

If an employer fails to pay after a warning notice they will be issued with a penalty notice which will require them to pay a penalty of up to 50% of the original award, subject to a cap of £5,000. Critics of the scheme are sceptical as to whether this will make any real difference as the level of the fine may simply lead to offenders settling the penalty but leaving the original award unpaid.

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