System of administrative penalties for social conditionality

1.   Under the system referred to in Article 87(1), first subparagraph, the paying agency shall be notified at least once a year of cases of non-compliance where enforceable decisions in that respect have been made by the authorities or bodies referred to in Article 87(2). That notification shall include an assessment and grading of the severity, extent, permanence or reoccurrence and intentionality of the non-compliance concerned. Member States may make use of any applicable national grading system of labour sanctions in order to carry out such assessment. The notification to the paying agency shall respect the internal organisation, tasks and procedures of the authorities and bodies referred to in Article 87(2).
The paying agency shall only be notified where the non-compliance is the result of an act or omission directly attributable to the beneficiary concerned, and where one or both of the following conditions are met:
(a)
the non-compliance is related to the agricultural activity of the beneficiary;
(b)
the non-compliance concerns the holding as defined in Article 3, point (2), of Regulation (EU) 2021/2115 or other areas managed by the beneficiary situated within the territory of the same Member State.
2.   In their systems of administrative penalties referred to in Article 87(1), Member States:
(a)
may decide not to apply an administrative penalty to a beneficiary per a calendar year when the amount of the penalty is EUR 100 or less; however, the beneficiary shall be informed about the finding of the non-compliance and about the obligation to take remedial action for the future;
(b)
shall provide that no administrative penalty be imposed if:
(i)
the non-compliance is due to force majeure,
(ii)
the non-compliance is due to an order from a public authority.
3.   The application of an administrative penalty shall not affect the legality and regularity of the expenditure to which it applies.