Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

When a Claimant (the person suing in the Employment Tribunal) is successful in a claim – whether it’s for discrimination, unfair dismissal, or any other issue – at the Employment Tribunal or has entered into a settlement agreement (whether it be a COT3 or compromise agreement) they normally think that is the end of the matter. They’ve fought the hard fight and come out the other side with some form of remedy. However, that’s often not the end of the struggle. The Claimant may have won in the Employment Tribunal or settled the case but they’ve still got to make the Respondent (the person(s) being sued in the Employment Tribunal) pay up (if compensation is a remedy) or comply with the relevant remedy.

As you can probably guess from the above paragraph, a common problem that successful Claimants in the Employment Tribunal have is actually receiving the remedy that they’ve been awarded or agreed. This post will address enforcing an award for compensation (as opposed to other remedies such as re-engagement or reinstatement which will be addressed in future posts). Some companies (usually the smaller companies) just refuse to pay. This can be for a number of reasons – ranging from anger at having lost to insolvency to sheer incompetence. However, whatever the reason for the non-payment the Claimant has one object in mind – being paid what they’re owed under the Judgment or settlement agreement. The rest of this post will deal with enforcing the award of an Employment Tribunal award.

Enforcing an Employment Tribunal award

The Employment Tribunal’s judgment will normally (in less complex cases) contain an award for the Claimant. This award almost always specifies the date that payment of the remedy to the Claimant must be made by. If the Respondent has not paid this sum by the date specified then the Claimant must take steps to enforce the award.

It used to be the case that the judgment creditor would have to apply to the County Court for an order to enforce it. However, this is no longer the case. Since 1 April 2009 successful unpaid Claimants can immediately apply for any one of the following types of enforcement:

  1. Warrant of execution
  2. Attachment of earnings order
  3. Third party debt order
  4. Charging order
  5. Application to the ACAS Fast Track
  6. Appointment of receiver by Court to recover any money owed

The first four types of enforcement are the ones normally used to recover money owed. We shall therefore look at them in more depth below.

Warrant of execution

A warrant of execution authorises bailiffs to seize and sell property owned by the Respondent to enforce the payment of the sum owed. Simply threatening this normally receives the desired result of payment – businesses normally aren’t too happy about their property being seized in broad daylight, both for the adverse publicity it causes and the potential harm to the daily operation of their business.

A request for a warrant of execution must be made to the County Court (if the judgment debt is £5,000 or below) or the High Court (if above £5,000).

Attachment of earnings order

This remedy is only available in the county courts. Where the judgment debtor is an employee (i.e. in a discrimination case) an attachment of earnings order can be used to compel the employer to deduct a proportion of the employee’s earnings from their pay packet until the judgment debt is paid. This is a satisfactory means of enforcement if the judgment debtor is still in employment.

An application for an attachment of earnings order is made through Form N337.

Third party debt order

A third party debt order enables sums owed by a third party to the judgment debtor (i.e. the Respondent) to be frozen and seized by the judgment creditor (i.e. the Claimant). For example, Bob succeeds in a claim for unfair dismissal against Chris. He is awarded £5,000 and knows that Dave owes Chris £10,000. Bob could apply for a third party debt order against Dave.

An application for a third party debt order is made through form N349.

Charging order

A Claimant can impose a charge (similar to a mortgage) over property that the Respondent has a beneficial interest in, such as land or securities. Once the charging order is granted the judgment creditor (the Claimant) can apply for sale of the asset that they have a charge over. However, this method of enforcement is less used as it can be more difficult to navigate.

About

Redmans Employment Team deal with employment matters for both employers and employees, including drafting employment contracts and policies, advising employers and employees on compromise agreements, handling day-to-day HR issues, advising on restructures, and handling Employment Tribunal cases for both employers and employees Call 020 3397 3603 to speak to one of the members of our employment team or email us on enquiries@redmans.co.uk. Redmans have offices in Richmond, Chiswick, Hammersmith, Fulham, Kingston, Wimbledon, Ealing, Kings Cross and Marylebone (meetings strictly by appointment only).

Tagged with →  

Want to talk to an expert employment law solicitor?

You'll receive a callback from a specialist within an hour

Share →

Leave a Reply

Your email address will not be published. Required fields are marked *

 

Our awards

Request a callback

    Your first name (required)

    Your last name (required)

    Your email (required)

    Your telephone number (required)

    Brief details of your enquiry

    Contact us

    Please feel free to discuss your own position and concerns. Contact your nearest office on:

    T: 020 3397 3603
    E: enquiries@redmans.co.uk
    W: www.redmans.co.uk

    Testimonials

    4.77 Average

    205 Reviews

    Gary P

    All good advice, prompt and efficient

    Posted 1 month ago

    Anonymous

    Excellent advice and customer service.

    Posted 2 months ago

    Aneet G

    I would definitely recommend Redmans. Very impressed with service provided. They were extremely proactive in handling my case which made things easier for me. Provided sound advice and resolution. Special credit for this goes to Chris who dealt with my case with great determination and consideration.

    Posted 2 months ago

    Fern M

    Very efficient and friendly

    Posted 2 months ago

    Neville S

    A professional and friendly service, which I would highly recommend.

    Posted 2 months ago

    Daniel T

    Extremely helpful and made a bad situation much more manageable. Where other solicitors seemed disinterested in my situation Redmans immediately made me feel like it was a team effort to achieve a more favourable outcome

    Posted 2 months ago

    Paul T

    Excellent, quick and informative. Chris was a real star and gave me confidence during the uncertainty if a redundancy settlement.

    Posted 2 months ago

    Marina E

    Felt in very capable hands was listened to and given excellent advice. Would not hesitate to recomend and use again if needed.

    Posted 2 months ago

    Rosa B

    Fabulous service all round.

    Posted 2 months ago

    Anonymous

    Redmans were quick to respond to my enquiry and dealt with my case professionally and personably. I received sound advice and was put at ease by Chris Hadrill, Partner.

    Posted 2 months ago

    Alkhas K

    Excellent service.

    Posted 2 months ago

    Mathias G

    Contacted them regarding my end of employment agreement. Chris Hadrill dealt with it and was done and handed back to employer same day more than happy with there service.

    Posted 3 months ago

    Mark W

    Most professional from start to finish offering very a personal service. Most impressive and quick when dealing with the matters in hand.

    Posted 4 months ago

    Anonymous

    Posted 4 months ago

    submit

    I am very glad I came across Redmans Solicitors. Fantastic service!

    Posted 4 months ago

    Anonymous

    Fantastic communication, always happy to answer queries, highly recommended.

    Posted 4 months ago

    Wavenie B

    They were very straight to the point, friendly and understanding people. I felt they had my best interest. They were easy to get hold of, replies were almost instant. 5/5 for customer service

    Posted 4 months ago

    Christina P

    Caroline was fantastic to work with - extremely knowledgeable, supportive, thorough and honest. I definitely recommend Redmans!

    Posted 4 months ago

    Anonymous

    Very well done and fast support. Professional and reliable. Highly recommended!

    Posted 4 months ago

    Helene L

    They were very knowledgable in the respected area in terms of change in law/regulations that is crucial for the clients who are seeking for legal arvice.

    Posted 4 months ago

    Sara R

    Very helpful and wonderful advice

    Posted 4 months ago