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Enforcing tribunal awards and costs orders
[ch 13: pages 423-424]Tribunals do not have power to enforce their awards or costs orders. If an employer refuses to pay up, the claimant must launch separate county court enforcement proceedings.
Ministry of Justice research into the enforcement of tribunal awards in England and Wales (May, 2009) showed that 39% of tribunal awards are not paid at all and that 8% are paid only in part.
Reform plans — enforcing tribunal awards
The Small Business Enterprise and Employment Act 2015 contains plans for a new system for enforcing tribunal awards. Under these plans, if a tribunal award remains unpaid, an “enforcement officer” will give the non-paying employer a 28-day warning notice. If the award still remains unpaid, a “penalty notice” will be issued.
The penalty sum is to be 50% of the amount outstanding (with a minimum of £100 and a maximum of £5,000). If the amount due plus the penalty are paid within 14 days, the penalty will be halved. The penalty is to be paid not to the claimant but to HM Treasury. These provisions have not yet been implemented in law.