Extra employment tribunal fine causing controversy

Firms could face further fines on top of any compensation pay-out imposed if an employment tribunal (ET) has found that they have breached a staff member's rights, according to proposed government legislation.

The proposals were contained within the consultation document relating to workplace dispute, which was published last week. The suggestions have already caused controversy by being included in a document supposedly aimed at helping employers.

The consultation document states, "The Government believes employers should take appropriate steps to ensure that they meet their obligations in respect of their employees.

"We therefore propose to introduce the power for ETs to impose financial penalties on those employers found to have breached an individual’s rights."

The proposals state that the minimum fine would be £100, with the maximum being £5,000. Rather than being payable to the victim, it would be payable to the Exchequer.

The consultation went on to say that, whilst it recognised that companies would be opposed to the suggestions, it would encourage a greater knowledge of what was required of them legally.

This would, in turn, cut down the number of Employment Tribunal claims, thus saving the companies money in the long run.