Question to the Ministry of Justice:

To ask the Secretary of State for Justice, what assessment he has made of the effectiveness of current mechanisms for enforcing Employment Tribunal awards where employers refuse to pay compensation.

The Government is committed to tackling the issue of unpaid employment tribunal awards. The civil courts in England and Wales offer several different enforcement methods that a judgment creditor may apply for to recover money or property owed on a court order or judgment. These processes are individually designed to address different financial circumstances; and collectively they aim to make it as difficult as possible for judgment debtors to avoid their responsibilities. This also includes the Advisory, Conciliation and Arbitration Service (Acas) and Employment Tribunal Fast Track enforcement scheme whereby a claimant can instruct a High Court Enforcement Officer (HCEO) to act on their behalf.

We recognise the challenges associated with enforcing employment awards. We are therefore strengthening enforcement options through the Employment Tribunal Penalty scheme which will move to the Fair Work Agency (FWA) once established. The proposed powers of the FWA are set out in the Employment Rights Bill and we are committed to ensuring that it has the appropriate resources to discharge its responsibilities. The FWA will work closely with HMRC, the Insolvency Service and other relevant enforcement bodies to do this as effectively as possible. This will include considering how to use existing powers to tackle misuse of phoenix companies.