LRD guides and handbook February 2014

TUPE - a guide to using the law for union reps

Chapter 4

What if the employer fails to pay the compensation awarded by the tribunal?

[ch 4: page 51]

If the tribunal makes a compensation order and the employer fails to pay it, any of the “affected” employees can bring a claim for their portion of the amount owed. The claim must be brought within three months of the compensation order. There is a tribunal fee of £160 to issue the claim and a further £230 if a hearing is required (2013-14). There are special rules on fees where groups of employees band together to bring the claim. Most unions have made arrangements to lend the tribunal fee to their members, to be repaid if the claim succeeds. Contact your union to find out the position.

Tribunals have no power to enforce their own awards, so if the employer continues to refuse to pay, employees will have to apply to the County Court.

From 6 April 2014, tribunals will have the power to order employers who breach employment rights to pay financial penalties of between £100 and £5,000 when they lose a claim and “aggravating features” are present. Any penalties will be payable to the Treasury rather than the employees, with a 50% discount for payment within 21 days.