Majority of workers still awaiting compensation under tribunal penalty scheme: Alan Lewis comments in People Management

A recent investigation has exposed major flaws in the UK’s system for enforcing employment tribunal awards. The government backed scheme was set up in 2016 to assist the large number of successful tribunal claimants who had not received their compensation. But the investigation found that 75% of the people who used the scheme were still awaiting a payout.

Constantine Law partner, Alan Lewis believes that the core issue lies in the weakness of the UK’s enforcement framework. Commenting to People Management he said: "Any judgment or settlement agreement, which is a binding contract, is only as good as the ability of the debtor to pay. If the debtor is insolvent or has no assets to enforce against, then the debt simply goes unpaid".

According to Lewis, the system needs "radical ideas" to tackle the problem including holding company directors personally liable, and the creation of a government-funded compensation fund backed by employer levies.

Read the full piece here.