More than £390,000 of Employment Tribunal Awards Unpaid Due to Insolvency

employment tribunal awards

Figures obtained from a freedom of information request to the Department for Business, Energy and Industrial Strategy (BEIS) reveal that over £390,000 of employment tribunal awards remained unpaid in 2017 due to insolvency of the employer.

The real amount may be significantly higher as BEIS is only aware of unpaid awards when it is notified by a claimant. Experts suggest that these figures could be indicative of there being an element of “phoenixing”, where an employer intentionally becomes insolvent to avoid the debt, and then creates a new, similar company to continue trading.

At the outset of raising an employment tribunal claim it can be important for a claimant to assess the credit-worthiness, or otherwise, of the respondent company. Likewise, to consider the likelihood or ease with which a respondent could ‘phoenix’ itself if a substantial award is made against it.

If you need to discuss commencing an employment tribunal claim, or pursuing an award, please contact our employment law team.

Source: Over £390,000 of employment tribunal awards unpaid last year due to insolvency, peoplemanagement.co.uk, 7 August 2018.

employment tribunal awards

Comments are closed.