The hand of retribution

the skill does no damage when used on my paladin. I don't know about other people

Works fine for me so far.
It only does damage when used on something not targeting you.

Edit: Apparently it doesn't do damage when used as an opener/idle mob. It still works fine when I taunt things in combat already though.

Someone put it in the bug tracker and someone else replied confirming so there's something going on. It doesn't work for me either.

(I posted the link here and it was deleted... I thought posting bug tracker links was okay)

I assume Hand of Reckoning is what you're talking about and no, it doesn't work properly. It taunts, sure, but it doesn't deal damage when the condition is met. Not to out-of-combat targets as an opener, not to in-combat targets.