According to government commissioned research into the outcome of employment tribunals more than 50% of those awarded payments do not receive their full award.
The study by IFF Research found 49% of claimants had received payment in full and another 16% had received part of their award and over a third had been paid no compensation at all. The most common reason for non-payment was business insolvency.
The government is considering giving judges the power to require employers to pay deposits in advance of employment tribunals.
Employment Relations Minister Jo Swinson said:
‘We are determined to clamp down on businesses who fail to pay out. Far too many cases are not being resolved leaving people out of pocket. Taking an employer to tribunal is a stressful enough process without having to face the possibility of not getting what you are entitled to if you win your case.’
‘Whilst this is primarily about justice for individuals, it is also important that there is a level playing field for the majority of honest employers who follow the rules. Rogue employers should not be allowed to simply get away with not paying.’
‘We will look closely at how we can tighten things up to make sure that people get what they are owed. This includes potentially making changes to the employment tribunal rules to give judges the power to demand deposits from businesses who they think might not pay up.’
‘We are also considering fixed penalty notices for late payment and naming and shaming employers who fail to pay out. And we need to make sure that people are aware how they can take enforcement action if they are not paid what they are due.’
Internet link: Press release