Claimants missing out on tribunal payments
One in ten successful claimants in employment tribunal system do not receive compensation
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Tuesday, 14, Oct 2008 08:12
One in ten people who have successfully claimed money from the employment tribunal system do not receive their compensation.
Employment tribunals have no powers to enforce payments and around 1,500 claimants a year are refused their compensation by employers.
"The ability of rogue employers to ignore tribunal judgements with impunity seriously undermines the credibility of the employment tribunal system with both workers and employers," said David Harker of Citizens Advice.
"Closing this loophole is essential if the government wants to protect vulnerable workers and support good employers."
Claimants attempting to enforce unpaid payments face confusing and expensive legal action and many give up because of frustration or costs.
In one case a man awarded £10,000 gave up his case a year later because of frustration.
His former employer had denied his identity when visited by enforcement officers on three separate occasions and then ignored an order to attend three times - costing the claimant money each time.
It would cost the government less than £0.5 million a year to provide state-led law enforcement of employment awards to ensure claimants get their money, according to the Citizens Advice report.
Most of those who are not paid by past employers work in low paid and low skilled jobs like cleaning, bar work or construction and a substantial minority of them are migrant workers from countries like Poland, Latvia and the Czech Republic.