(1) The Employment Tribunals Act 1996 is amended as provided in subsections (2) to (6).

(2) After section 37 insert -

"PART 2A FINANCIAL PENALTIES FOR FAILURE TO PAY SUMS ORDERED TO BE PAID OR SETTLEMENT SUMS

37A Sums to which financial penalty can relate

(1) This section has effect for the purposes of this Part.

(2) "Financial award" -

(a) means a sum of money (or, if more than one, the sums of money) ordered by an employment tribunal on a claim involving an employer and a worker, or on a relevant appeal, to be paid by the employer to the worker, and

(b) includes -

(i) any sum (a "costs sum") required to be paid in accordance with an order in respect of costs or expenses which relate to proceedings on, or preparation time relating to, the claim or a relevant appeal, and

(ii) in a case to which section 16 applies, a sum ordered to be paid to the Secretary of State under that section.

(3) Subsection (2)(b)(i) applies irrespective of when the order was made or the amount of the costs sum was determined.

(4) "Settlement sum" means a sum payable by an employer to a worker under the terms of a settlement in respect of which a certificate has been issued under section 19A(1).

(5) "Relevant sum" means -