Employment tribunal claimants never receive compensation

By October 29, 2016Case Review
Employment Tribunal | HR Solutions

A third of people who win employment tribunals do not see the money awarded and less than half are paid in full.

When people win their case at an employment tribunal, they naturally expect to receive the compensation that has been awarded to them. But Government figures show that thousands of workers who have won their case have actually never received any financial pay out, while many do not receive all of what they’ve been awarded.

The Government say it wants to tackle this issue and make employers pay up. But new figures show that despite the Government’s commitment, many unpaid claimants receive no help in getting their money.

A common problem is when companies go into liquidation before the final hearing and are able to dodge liability. It is difficult, and expensive, to prove that a company is deliberately going bust to avoid paying compensation. Some companies transfer assets between companies as another way to escape paying out, but the authority’s hands are tied.

The Government has brought in fines for employers who have failed to pay out, but this doesn’t seem to have made much of an impact so far. The TUC reported seeing figures that show that in the first five months of the new penalty system, 11 cases have been assisted which resulted in £55,000 being paid out to successful claimants. While this may sound positive, it is only equivalent to 1% of cases where the claimant had not been paid despite winning their tribunal.

Only time will tell if this new scheme has the impact that the Government, unions and of course successful claimants are hoping for.

Interested in what we do?

Get the latest news from HR Solutions delivered to your inbox