Employment Tribunal Awards

This year BIS have sponsored research to find out whether or not Employment Tribunal awards are being paid, reasons for non payment and the effect of enforcement action. The results were published earlier this month.

This year BIS have sponsored research to find out whether or not Employment Tribunal awards are being paid, reasons for non payment and the effect of enforcement action.  The results were published earlier this month. 

During the period of the study the majority of successful claims were for breach of contract and unpaid wages against small private sector employers with under 50 employees.  The average award for this category was £2,600. 

Only around 49% of all successful claimants received payment in full, with 35% receiving no compensation at all. 

One of the most common reasons for non payment included the fact that employers simply refused to pay, or because the employer had become insolvent or ceased trading (37%). 

The report gave the main reason for not using enforcement action as a lack of awareness, with only 41% of claimants aware that they could take enforcement action when an employer did not pay.

As a consequence of the research the government has said it will look at ways to stop the trend of non payment.  Some of the measures being considered include changing the Tribunal rules to give Judges the power to demand deposits from employers who they think may not pay up, fixed penalty notices for late payment as well as the possibility of naming and shaming employers who fail to pay.  However, at this stage these are only proposals, and we will have to wait to see which if any are brought into force.