Employment tribunal judgments are increasingly being ignored as losers refuse to pay compensation or abide by orders to pay costs.
Evidence of this disturbing new trend was revealed by legal protection company DAS, which highlighted the need for adequate insurance cover to fund appeals or enforce decisions that have been handed down.
Victoria Scott, head of claims at DAS, said: “Disregard for the verdict of a tribunal is increasingly common on both sides. As a proportion of all claims, defaulters remain a minority – but a growing one. Some employers don't want to pay compensation and likewise if costs are awarded by the tribunal chairman against the employee, they can also be reluctant to pay.”
“Though the tribunal system can be used without recourse to solicitors, most people do not want to put themselves at a disadvantage. Employees can of course use the legal protection policy attached to their home insurance. A good one will pay not only for legal fees, but disbursements such as experts' reports: they will also pursue the other side until judgment is enforced and any additional costs and interest is settled”.
“It is vital to have legal protection that includes appeals and enforcement”, Scott added. “There is no use going to tribunal and not benefiting from its judgment”.
