It Will Be Easier To Enforce Tribunal Awards

It is now possible tribunal enforcement officers the power to impose a financial penalty against employers for failure to pay sums ordered by an employment tribunal, including costs awards and preparation time orders, employment tribunal fees and Acas negotiated settlements.

The amount of the penalty will be 50% of the amount owed.

The penalty is subject to a minimum threshold of £100 and an upper amount of £5,000. However, employers will qualify for a reduction of 50% of the penalty if they pay the reduced penalty and the whole unpaid amount within 14 days after the day on which notice of the decision to impose the penalty is sent to the employer.

Frankly this will not incentivise the resistant employer from avoiding paying Tribunal award. Once am employer does not want to pay an award they are not really bothered and they are facing the risk of insolvency proceedings.