1. to impose a penalty or punishment on someone for breaking a rule or law
Usage: British spelling; American spelling is ‘penalizes’
2. to put someone at a disadvantage
Usage: British spelling

Examples

• The referee penalises players who commit fouls.
• The new tax system penalises small businesses.
• The school penalises students for late submissions.
• This policy penalises families with children.
• The judge penalises repeat offenders more severely.
• The company penalises employees who arrive late.