New Clause 49 - Further provision about penalties

Part of Employment Rights Bill – in the House of Commons at 5:30 pm on 12 March 2025.

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“(1) The Secretary of State may by directions specify circumstances in which a notice of underpayment is not to impose a requirement to pay a penalty.

(2) A direction under subsection (1) may be amended or revoked by a further direction.

(3) A notice of underpayment that imposes a requirement to pay a penalty must—

(a) specify the amount of the penalty,

(b) state how that amount was calculated, and

(c) specify the date by which the penalty must be paid.

(4) In a case where a notice of underpayment imposes a requirement on a person to pay a penalty, if the person, before the end of the period of 14 days beginning with the day on which the notice is given—

(a) pays (or has paid) the required sum specified in the notice of underpayment, and

(b) pays at least half the penalty,

the person is to be regarded as having paid the penalty.

(5) Any penalty received by the Secretary of State in accordance with section (Penalties for underpayment) is to be paid into the Consolidated Fund.”—(Justin Madders.)

This new clause enables the Secretary of State to specify circumstances in which a penalty is not to be imposed. It also enables a person who has paid the sum owed to the underpaid individual, and at least 50% of the penalty, within 14 days of being given the notice to satisfy their liability entirely.

Brought up, read the First and Second time, and added to the Bill.

Clause

A parliamentary bill is divided into sections called clauses.

Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.

During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.

When a bill becomes an Act of Parliament, clauses become known as sections.

Secretary of State

Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.

clause

A parliamentary bill is divided into sections called clauses.

Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.

During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.

When a bill becomes an Act of Parliament, clauses become known as sections.