Legislation – Employment Rights Act 2025
Changes to legislation:
Employment Rights Act 2025, Section 109 is up to date with all changes known to be in force on or before 04 April 2026. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.![]()
Changes to Legislation
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Part 5Enforcement of labour market legislation
Notices of underpayment
109Suspension of penalty where criminal proceedings have been brought, etc
(1)
Subsection (3) applies where—
(a)
the Secretary of State is proposing to give a notice of underpayment that imposes a requirement on a person to pay a penalty, and
(b)
it appears to the Secretary of State that—
(i)
relevant criminal proceedings have been brought, or
(ii)
relevant criminal proceedings may be brought.
(2)
In this section “relevant criminal proceedings” means proceedings against the person for a labour market offence in respect of any act or omission to which the notice relates (“the relevant conduct”).
(3)
The notice of underpayment may contain provision suspending the requirement to pay the penalty until a notice terminating the suspension is given to the person under subsection (4).
(4)
The Secretary of State may give the person a notice terminating the suspension (a “penalty activation notice”) if it appears to the Secretary of State—
(a)
(5)
Where a penalty activation notice is given, the requirement to pay the penalty has effect as if the notice of underpayment had been given on the day on which the penalty activation notice was given.
(6)
The Secretary of State must give the person a notice withdrawing the requirement to pay the penalty if it appears to the Secretary of State that the person has been convicted of a labour market offence in respect of the relevant conduct.