Section 109 | Suspension 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)in a case referred to in subsection (1)(b)(i), that the proceedings have concluded without the person having been convicted of a labour market offence in respect of the relevant conduct, or

(b)in a case referred to in subsection (1)(b)(ii)—

(i)that relevant criminal proceedings will not be brought, or

(ii)that relevant criminal proceedings have concluded without the person having been convicted of a labour market offence in respect of the relevant conduct.

(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.