Financial penalties for bad employers Changes
Employers who breach their workers ' employment rights may be fined up to £ 5,000 if their breaking of the law can be shown to have had " aggravat ing features , such as malice or negligence ". However , the fine will not be imposed where breaches of the law are deemed to have been " inadvertent ".
Criticism
The wording of this proposal makes it clear just how weak this policy is , especially compared with the barrage of attacks on workers ' rights . It seems employers will simply not be punished for breaking the law , unless their workers pay up to take them to tribunal , or the employer ' s pleads that they " didn ' t mean it " are not believed .
In our submission to the consultation on the Bill , Anya Palmer stated : " We consider these penalties are not high enough to offer any real disincentive to employers . We believe a much greater disincentive exists in the current system where claimants can be properly compensated in an appropriate case ."
" Moreover , as the financial penalties will not be imposed automatically , only in certain circumstances , they introduce uncertainty into the process and make it less likely that cases will be settled ," she added .
Other problems appear when businesses become insolvent , as in this case unfair dismissal penalties and compensation would be paid by administrators using a limited cash fund . Where financial penalties reduce that fund , workers could lose out in compensation and backpayments . Baroness Hayter of Kentish Town highlighted this issue in a House of Lords debate , adding that although tribunals could use discretion , the fact a £ 100 to £ 5,000 fine is worded in the law creates uncertainty for insolvent businesses and their employees .
In the same debate , Lord Young pointed out the ideological angle this policy is taking . Why fine employers for wrongdoing instead of trying to tackle the problem at its root ? He recommended that the focus was switched to managerial training .
The Institute of Employment Rights is also concerned about the ideology behind this policy . We believe that when an employer breaks the law , they should compensate the wronged party - the employee - first and foremost . Adding to the Treasury ' s coffers through the imposition of fines should be a secondary concern .
Judges sitting alone at Employment Appeal Tribunals Changes
The requirement for lay members to sit in on Employment Appeal Tribunals has been removed , allowing judges to preside alone by default . Lay members may still sit in on Employment Appeal Tribunals if they are directed to do so .
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