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Claimants get fast track to tribunal compensation
Added: 2010-05-24 11:43:25.0This time last year, the Ministry of Justice (MoJ) revealed that as many as 39% of successful claims at employment tribunals had not been paid and that only 53% of claims had been paid in full. Since then, the former government created new measures making it harder for companies to avoid paying compensation to their ex-employees. This was created in the form of the employment tribunal fast track scheme which went live on April 6th.
Before the fast track system was set up, a successful claimant would need to go through the County Court to enforce an unpaid compensation award, owing to the fact that the employment tribunal did not have the power to enforce its own judgements. It was in April 2009 that the MoJ began to monitor who was not paying the relevant compensation (and allow public access to this information) and following the revelations, they began to construct a way to make it easier for claimants to pursue what was owed to them.
The fast track scheme aims to simplify the process of pursuing a claim by giving successful claimants access to the services of the High Court enforcement officers. Providing the compensation award is above £600, the claimant needs to pay just £50 to issue a writ to seize assets to the value of the judgement that they have been awarded. This figure will be added to the employer’s debt.
Before the fast track system was introduced, a court-appointed bailiff would be engaged by the County Court and was able charge for their services, whether they successfully recovered the claimant’s compensation or not. The new scheme means that once a High Court enforcement officer is engaged by the claimant, they will only receive payment upon a successful recovery.
The MoJ have said that the new system was required due to the large number of businesses who were not paying the claimants their tribunal awards. Bridgett Prentice, the former justice minister commented "The government is determined to ensure people are not denied access to justice by a small minority of unscrupulous individuals or companies who refuse to respect the award. The fast-track will ensure all recipients can pursue their awards with ease."
The new fast track system is expected to have a considerable impact on the success of claimants receiving their compensation payments. It is expected that the imposing threat of a potentially humiliating visit from the High Court enforcement officers will mean that employers are quicker and more likely to pay out claims. Likewise, the fact that the list of those employers who have not paid is public, it is expected that business owners will want to keep their reputation intact by keeping their company off the list.
An assessment of the fast track scheme will be carried out in 2 years and the MoJ has said that it expects to add ACAS settlements to the system at a later date.
The content of this blog is not legal advice and should not be relied on as such, or used instead of seeking legal advice.
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