Research commissioned by the government has discovered that many employers are not paying out employment tribunal awards to successful claimants. The research was done by IFF Research – Payment of Tribunal Awards 2013 . It seems that currently rogue employers can get away with murder.
The research discovered many employers refused to pay. Therefore the government are considering bringing in new powers for judges to demand up front deposits from employers unwilling to pay..
If a company has stopped trading it can be difficult for claimants to get their money. At the moment with redundancy payments the Insolvency Service http://www.bis.gov.uk/insolvency can pay certain elements. The government will be looking at how such issues can be resolved.
If an employers fails to pay a claimant can pursue payment via either the county court or via the fast track scheme can access the services of a high court enforcement officer to act on their behalf. It appears that many claimants were not aware of enforcement.
According to the research 49% of claimants get paid in full with 16% being paid in part. Therefore more than a third receive no money at all and this includes even after enforcement action has been taken. Reasons for non-payment were the company was insolvent, the employer refused to pay or the employer could not be located.
