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Can I Force My Employer To Pay My Employment Tribunal Award?

Summary

  • You usually have to enforce an unpaid Employment Tribunal award yourself because the tribunal does not chase payment.
  • First steps include checking the payment deadline, writing to your employer, and confirming whether the business is still trading.
  • If the employer is trading, you can use the government penalty and naming scheme or court-based enforcement, including the Acas fast track.
  • If the employer is insolvent, recovery is far harder, and you may need to claim limited sums from the National Insurance Fund.
  • Acting quickly, keeping records, and getting legal advice can improve your chances, although some awards remain unpaid despite action.

Winning an Employment Tribunal claim should give closure. You receive a written judgment or settlement that sets out what your employer must pay and states they have 14 days to make payment. The expectation is simple. The employer pays on time, and you move on.

This does not always happen. Some employers fail to pay. Some ignore judgments. Others run out of money or shut down before the award becomes due. Insolvency plays a major part in unpaid awards each year. This guide outlines what you can do, how to push for payment, and the options available when the employer has gone bust.

Step 1: check the judgment and deadline

Start with the award itself. Reread the judgment or settlement. Confirm the total amount, how it is broken down, and the exact payment deadline. This matters because enforcement action depends on the award becoming overdue.

Interest can also add up. For most claims, interest begins 14 days after the judgment date. For discrimination awards, the period is shorter. When you enforce through the courts, interest can often be included.

If you have lost your copy of the judgment, contact the tribunal office and request a replacement. You will need the case number and the parties’ names.

Step 2: contact your employer and keep records

When the deadline passes, write to your employer straight away. Keep the letter firm and clear. State the amount due, refer to the Tribunal judgment, and set a short final payment deadline.

Some employers pay when they receive a formal reminder. Your letter may prompt action without extra cost. Keep copies of everything you send and receive. These records can support your case later if you use the government penalty scheme or apply to the court.

Step 3: check if the employer is still trading or insolvent

The hardest barrier to recovering an award is insolvency. If a company collapses, funds for unsecured creditors are usually limited or nonexistent. Directors are rarely personally liable for company debts unless the Tribunal also found personal responsibility, which is rare.

A few simple checks help you work out what you are dealing with. Look up the employer on the Companies House register. This will show whether the company is active, dissolved, in administration, or in liquidation. You may also have received emails or letters from insolvency practitioners. If the business has stopped trading, your enforcement options change completely.

Step 4: using the government penalty and naming scheme

The government runs a free scheme that allows employers to be fined for failing to pay Employment Tribunal awards or Acas settlements. It can also publish their details in some cases. The aim is to pressure employers into paying.

The process is straightforward. Once payment is overdue, complete the application form and send it to the address given. The details will be reviewed, and if appropriate, a warning notice will be issued to your employer. A penalty may also be imposed.

This scheme does not give you the unpaid money. The penalty is paid to the government and is usually 50% of the outstanding judgment amount subject to a minimum of £100 and a maximum £5,000.

Step 5: enforcing through the courts or fast track

The Employment Tribunal does not enforce its own awards. If your employer does not pay, you can transfer the award to the County Court or ask for High Court enforcement through the Acas fast track.

The fast track is simple. You complete form EX727. The court then allocates a High Court Enforcement Officer who can try to collect the debt using powers such as a writ of control. A court fee is payable, but if enforcement succeeds, the employer usually covers the fee and interest.

There is a risk. If enforcement fails because the employer has no assets, the recovery of fees can be limited. Many claimants still choose this option because it can lead to payment where the employer is trading and has assets.

To minimise your risk it is always best to talk with an experienced Employment Law Solicitor before proceeding.

Step 6: other enforcement options if the employer is trading

You may have further options once the award becomes a court judgment. You can instruct High Court Enforcement Officers directly, seek a third party debt order against the employer’s bank account, or apply for a charging order over their property.

These routes work only where the employer has money or assets. If the business is active and earns revenue, enforcement can succeed. If it is struggling or has moved assets, recovery is harder.

Some debt collection agencies offer specialist help, but their charges vary. Always ask for a clear explanation of fees and the likely success rate before signing up.

Step 7: when the employer is insolvent

Insolvency changes everything. Once a business is in liquidation or administration, your claim is usually treated as an unsecured debt. These debts underpin the insolvency practitioner’s fees and those of certain preferential creditors. Many unsecured creditors receive nothing.

You may be able to claim limited payments from the National Insurance Fund. The Fund can cover arrears of pay, holiday pay, statutory notice pay, and statutory redundancy, up to capped levels. These payments may overlap with parts of your Employment Tribunal award.

The Fund does not cover everything. Injury to feelings awards, compensatory awards for unfair dismissal, and other non-wage losses are not included. Many claimants receive only a small portion of what the tribunal awarded.

Final words

You are not the only claimant facing this problem. Many claimants win at the Employment Tribunal, only to face silence. By checking the award, confirming whether the employer is still trading, writing early, and considering the free penalty scheme, you give yourself the best chance of recovery. Court enforcement and the fast track can work where the employer has assets. Insolvency limits recovery, but the National Insurance Fund may help with some payments.

FAQs

My employer has missed the payment deadline. How long should I wait before starting enforcement?
You can act as soon as the deadline has passed. Write a short letter giving a final date for payment. If nothing arrives, you can move to enforcement.

Can I make directors personally pay if my employer is a limited company that has become insolvent?
Directors are usually not personally liable for the company’s debts. Only in rare cases involving separate legal findings can a director be held liable.

What is the Acas fast-track scheme, and how much does it cost to use?
It is a process where the award is transferred for High Court enforcement. You complete form EX727 and pay a court fee. If enforcement succeeds, the employer usually covers the cost.

Will I have to pay tax on my Employment Tribunal award once I finally receive it?
Some parts of an award are taxable, such as notice pay or earnings-related sums. Injury to feelings awards and most non-wage payments are not taxable. HMRC guidance applies.

If you have any questions regarding this article, please call our office today on 02476 231000 or emailenquiries@askewslegal.co