Section 50Part 6 — SEVERANCE PAY
Penalties relating to severance pay
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Where the Grand Court, a court of summary jurisdiction or an Employment Tribunal finds an employer liable for severance pay, it shall, in addition to an order to pay severance pay under this Law and any other orders it may give, order the employer to pay to the severed employee a penalty not in excess of twelve weeks' pay.
If a penalty is ordered under subsection (1) the amount of the penalty to be paid is in the discretion of the adjudicating authority, up to the maximum prescribed in that subsection, and in exercising that discretion the adjudicating authority shall take into account all the circumstances of the case, but in no event shall a penalty be ordered unless the employer has previously been adjudicated to have been in violation of severance pay provisions, that violation taking place within the two years immediately preceding the date of the violation before the adjudicating authority.
For the avoidance of doubt, it is declared that the mere fact that the employer violated severance pay provisions in the preceding two years is not in itself sufficient reason for ordering a penalty to be paid.