New research shows that over half of successful tribunal claims do not receive their award
19th December, 2013
Earlier this month, the Department for Business Innovation and Skills published research stating that a majority of people who were granted a tribunal award never actually received the full extent, if any, of that award.
In an effort to eradicate the problem of non-payment, the government is considering:
• Giving Employment Judges the power to order deposits from businesses who are considered at risk of non-payment;
• Issuing fixed penalty notices for late payment; and
• Publicly “naming and shaming” employers who do not to pay.
The research highlighted a problem of instances where a company has stopped trading and as such the awards they owe are not paid. If a company is insolvent, the Redundancy Payments Service can already pay certain elements of an employment tribunal award but the government now wants to extend this service to ensure claimants receive their full award.
Further findings of the research reports:
• Only 49% of claimants who had been granted an award by a tribunal had been paid the award in full, a further 16% were paid in part leaving over a third who were not paid at all; and
• Claimants with larger awards (over £5,000) reported the most occurrences of the reason for non-payment being that the company had becoming insolvent or ceasing trading. Further, 17% of claimants reported that they were unable to locate the employer in order to receive payment.
Although there is clearly a disturbing amount of non-payment, only 22% (of all claimants) pursued enforcement through the courts. There is a serious lack of awareness of enforcement procedures with only 41% of claimants agreeing that they were aware of the options open to them if their employer did not pay their award. Ministers are now looking at action to promote enforcement procedures with a view to raising awareness among claimants.
For further information and advice on enforcement of tribunal awards, please contact Helen Watson on 01244 405565 or send an email to [email protected].
You might also be interested in...
22nd May, 2018
With the General Data Protection Regulation (GDPR) coming into force in May, businesses across Shropshire have been flocking to hear more about the new laws Paul Bennett, a partner at law firm Aaron & Partners LLP, has been delivering seminars in partnership with the Shropshire Chamber of Commerce An employment solicitor from Shrewsbury is urging businesses across the... Read More »
15th May, 2018
Experienced HR leader joins Aaron & Partners LLP Law firm with offices in Chester and Shrewsbury appoints Kate Robertson to drive HR strategy for more than 120 staff and to support the company’s growth Chester law firm Aaron & Partners LLP has strengthened its senior leadership team with the appointment of an experienced human resources manager. Kate Robertson... Read More »
24th April, 2018
Jan Chillery, Insolvency Partner at Aaron & Partners LLP, shares her experience and the reasons why we should be cautious before paying so-called “bailiffs” over the phone or online without vetting them first. My neighbour has told me that recently he had a CCJ (County Court Judgment) against him. A day or so later, he received a phone call... Read More »