A report from national charity Citizens’ Advice has revealed that as many as one in 10 of all successful claimants in employment tribunals do not receive their monetary award.
The report, Justice Denied, argues that closing the loophole in the system is essential if the Government is to deliver on its promise to protect vulnerable workers, and outlines a number of suggestions for how this can best be done.
The report was launched at the Citizens’ Advice All Party Parliamentary Group, chaired by Karen Buck MP, and is aimed at influencing the current Employment Bill which is at the second reading stage. An amendment to the Bill supporting Citizens Advice proposals for state-led enforcement of unpaid awards has been put forward by MPs Sarah Teather and Lorely Burt.
While most tribunal claims are settled before reaching a hearing, about 15,000 claims each year end with a judgement and monetary award in favour of the claimant.
However, the tribunals have no powers to enforce the awards made, with as many as 1500 claimants a year not receiving the due award.
According to the report, the majority of claimants denied their money were employed in low paid, low skilled jobs – typically retail assistants, kitchen and catering assistants and cleaners – with at least 10% being migrant workers.
It claimed that in order to try to enforce an unpaid award, claimants must enter into “bewilderingly complex and costly legal action” in the civil courts, with most giving up through frustration, anxiety or mounting expense.
Citizens’ Advice called for state-led enforcement of awards to ensure claimants get the money they are entitled to.
In the report, it suggests the total net cost to the Government would be less than £500,000 a year.
David Harker, chief executive of the charity, said the ability of rogue employers to ignore judgements with impunity seriously undermined the credibility of the tribunal system for both workers and employers.
He added: “The current system is grossly unfair, both to those claimants who do not receive the compensation due to them and to the majority of employers who play by the rules and pay the awards made against them. Bringing in a state-led system of enforcement would cost the Government less than 4% of the savings it expects to reap from its current Employment Bill.
“We very much hope the Government will act now to address this issue.” n
