Enforcing tribunal awards
New government commissioned research has found that over half of individuals awarded compensation following an employment tribunal hearing do not receive their award in full. As a result, the government is looking at ways to clamp down on non-payment.
The Payment of Tribunal Awards 2013 Study, carried out by IFF Research, examined whether awards were paid, reasons for non-payment and the effect of enforcement action. It found that 49% of claimants who had been granted an award by an employment tribunal had been paid this award in full, and a further 16% had been paid in part.
One of the most common reasons for non-payment was that some employers simply refuse to pay so the government is to consider new powers for judges to demand deposits from employers who they think might not pay up. It is also considering fixed penalty notices for late payment; naming and shaming employers who fail to pay out; and making sure that people are aware how they can take enforcement action if they are not paid what they are due.
The government is also looking at what action it can take to make sure claimants get their employment tribunal award when a company has stopped trading. It proposes to raise awareness of the fact that if a company is insolvent the Redundancy Payments Service can pay certain elements of an employment tribunal award.