Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

Had it occurred to you that bankruptcy might be a consequence of losing a Tribunal claim?

24 February 2011 #Employment


It has been reported that a former MP, Jim Devine, has been declared bankrupt after he failed to pay the compensation awarded by a Scottish Employment Tribunal in the sum of £35,000 to his ex Office Manager.

Claimants have various methods of enforcements actions available to them against employers who failed to pay Tribunal awards including compensation and costs awards.

In England various enforcement options to recover sums owed include:

  • Issuing warrants of execution or writs,
  • An attachment of earnings order (where the debtor is an employee),
  • A third party debt order,
  • A charging order or
  • Enforcement through the ACAS and Employment fast track system.
    Further, a receiver may be appointed by the Court to collect the debt although this can be expensive if there is little prospect of recovery.

Such enforcement action is taken in the civil court system, not within the Employment Tribunal system.

A Respondent who fails to pay an award will be added to the Register of Judgements, Orders and Fines (http://www.trustonline.org.uk/understand-judgments-fines/the-registers-for-judgments-and-fines/) when they are sued in the County Court. The Register is open to the public to search and can be viewed by credit reference, for a small fee, agencies so a company`s credit rating may be affected.

In discrimination claims failure to pay an award can amount to an act of victimisation and form the basis of a further claim.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.

Read more articles

Contact

Employment team
+44 (0)118 958 5321