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Employment Tribunals – Who Pays?

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The Department for Business, Innovation and Skills (BIS) has recently published a study on the ‘Payment of Tribunal Awards’ (Making the Labour Market more Flexible, Efficient and Fair).

The report summarises the findings of a study of people who made successful claims to an Employment Tribunal and were awarded a sum of money by the Tribunal. The survey was completed prior to the changes to the Employment Tribunal process that came into effect in July 2013. To lodge a claim in an Employment Tribunal after that date, a claimant has to pay a fee, or apply for fee remission.

Some interesting statistics arise from the report:

  • The majority of successful claims were brought against small employers (under 50 staff) in the private sector.
  • Unpaid wages and breach of contract claims were the most common jurisdictions. The average award value was £2,600.
  • Overall, around half (49%) of claimants had been paid in full, and a further 16% had been paid in part. This amounts to 64% of all claimants, and leaves 35% who had not received any money at all.
  • Just over a half of claimants (53%) received full or part payment without having to resort to enforcement.
  • Claimants who had received assistance from lawyers, unions or informal arrangements either before, during or after their initial hearing were more likely to receive payment without needing enforcement (58% compared to 53% overall).
  • The most common reason for non-payment was that the employer against whom the claim was made was now insolvent (37%) and over half of claimants giving this as the reason believed that the company they had worked for was now trading again under a different name or at a different location.

HR Solutions are experts when it comes to Employment Tribunal case management. Call us on 0844 324 5840 or contact us online to find out more.

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