Only 46% of the claimants who were not paid then went on to take action to enforce their award.  Most of the claimants who attempted enforcement preferred to use the Fast Track enforcement Scheme rather than the county courts because it appeared to be the quickest or easiest option.  Enforcement resulted in payment of the award for half of those surveyed.

The survey found that the most common reason for non-payment was that the employer had become insolvent.  Many claimants were unaware that in cases of employer insolvency they can apply to the Redundancy Payments Service if their award related to an unfair dismissal claim.

In 29% of non-payment cases, the employer simply refused to pay the award.  This is a concern given that claimants now have to pay both an issue fee and a hearing fee for bringing a case in the employment tribunal, without any greater reassurance that they will receive payment if their claim is successful.

As a result, the Government is considering introducing a raft of measures to ensure employers pay awards, including:

The survey by the Department of Business, Innovation and Skills, entitled Payment of Tribunal Awards 2013 study, can be accessed at the link below:

BIS Enforcement of Tribunal Awards

Fees must be paid when the ET1 form is lodged at the employment tribunal (issue fee) and when a case is put down for a final hearing (hearing fee).  The fees applicable to a particular case depend on whether there is a single claimant or multiple claimants and whether the claim falls  into the Type A or Type B category.

The issue fee for a Type A claim is £160 and for a Type B claim is £250. The hearing fee for a Type A claim is £230 and for a Type B claim is £950.

Type A claims include claims for:

Type B claims include claims for:

If a claim form contains both Type A and Type B claims, then the fee for a Type B claim is payable.

Claimants who cannot afford to pay the fees may be eligible to have some or all of their fees reimbursed if they are in receipt of a sufficiently low income.

If a claim is not accompanied by the issue fee or an application for a fee remission, then the tribunal will reject the claim.  The claimant will be able to present the claim again with the fee or remission application as long as the claimant is still within the limitation period.

Fees are also payable when making an application, such as for dismissal of a claim following withdrawal.  The fee to be paid varies according to the type of claim and the application being made. A fee of £600 is also payable by the respondent if the parties opt for judicial mediation.

Fees are now payable at different stages of Tribunal proceedings, including when the claim form is presented to an employment tribunal (issue fee) and when the case is put down for a final hearing (hearing fee).  The fees applicable to a particular case depend on whether there is a single claimant or multiple claimants, and whether the claim falls into the Type A or Type B category. Claimants who cannot afford to pay the fees may be eligible to have some or all of their fees reimbursed if they are in receipt of a sufficiently low income. Fees are also payable when making an application and for proceeding to judicial mediation.

The ET1 claim form and the ET3 response form have been re-drafted. In the ET1, the claimant is now required to specify the level of financial compensation sought.  There is also a new section relating to whistleblowing claims if the claimant wishes a copy of the ET1 to be sent to a prescribed person.  A form for payment and, if applicable, remission of fees must be submitted along with the ET1.

After the claim and response have been accepted by the Tribunal, the merits of the case will be considered by an employment judge who will decide whether the case should proceed or be struck out.  The case can be struck out if the judge considers it has no reasonable prospects of success or if the claim is outside the Tribunal’s jurisdiction.  If a claim is dismissed at this stage, the claimant can write to the Tribunal to explain why it should not be dismissed.

The maximum award permitted for unfair dismissal is now set at the lower of the statutory cap (currently £74,200) or one year’s gross pay.

“Compromise agreements” are now known as “settlement agreements”.

Pre-termination negotiations, where employer and employee discuss ending the employment relationship through a settlement agreement, now cannot be used as evidence at an employment tribunal in an unfair dismissal claim.

However, the rules relating to pre-termination negotiations do not cover claims that relate to an automatically unfair reason for dismissal, such as for whistleblowing, union membership or asserting a statutory right.  Claims made on grounds other than unfair dismissal, such as discrimination, breach of contract or wrongful dismissal, are also not covered by the legislation relating to pre-termination negotiations.