Tax & Accounting News

New powers for employment tribunals

12/05/2010

Employment tribunals have been given additional powers to recover money owed to workers by their former employers as of this month.

High Court enforcement officers can now be called on to pursue employers who fail to make payments which have been awarded in cases of unfair dismissal or discrimination.

The Ministry of Justice brought in the new powers, which came into affect on 6 April, because it believes a significant minority of employers are failing to pay up after employment tribunals have ruled in favour of employees. Research published by the government last May revealed that 39% of employees had not received the payments they were entitled to.

The Employment Tribunal Fast Track programme will mean that, on payment of a £50 court fee, enforcement officers will be able to begin the process of seizing assets from employers. The fee can then also be added to the amount owed to the employee.

Justice minister Bridget Prentice said: “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.”