Employers failing to pay Tribunal awards

Winning an Employment Tribunal and being awarded compensation proves to be a hollow victory for many workers when their employer fails to pay up, says charity Citizens Advice.  

Evidence from Citizens Advice Bureaux across the country suggests that non-payment of employment tribunal awards by employers is widespread and could be on the increase.

In a report Empty Justice, Citizens Advice – the national umbrella charity for bureaux – points out that many awards are simply not paid because Employment Tribunals in England and Wales have no power to enforce them.

In 2003-4, 13,000 employment tribunal claims were successful, many involving unfair dismissal and unpaid wages.

But where an employer fails to pay up, the claimant then has to go to court, a costly and time-consuming process.

Citizens Advice Director of Policy Teresa Perchard said: “Evidence from the day-to-day advice work of Citizens Advice Bureaux indicates that making a claim and winning is frequently not the end of the story.

“We are very concerned that non-payment of awards by employers is widespread and that all too often a favourable tribunal ruling proves to be a meaningless victory.

“ There are just too many legal and financial obstacles to the enforcement of awards. At a time when the Government is actively seeking to have most of all kinds of disputes resolved fully out of court, it is nonsensical that people have to go to court not just once but twice, simply to get the result they are entitled to and without any real help along the way.

“ The Government must act to improve the system and make sure that successful claimants are not denied justice.”