Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty’s Government, further to the Written Answer by Baroness Neville-Rolfe on 4 January (HL4265), what costs have been incurred in relation to the issue of warning notices; how many recipients of warning notices complied with them; what was the total amount of compensation paid  by compliant employers; what costs have been incurred in relation to the issue of penalty notices; how many recipients of penalty notices complied with them; how much was recovered under the penalty notice process; and what steps are taken to advise and support claimants in relation to the failure of employers to comply with employment tribunal orders to pay compensation.

Costs incurred in the issuing of warning letters and penalty notices are minimal because they are part of the administrative process delivered by the Employment Tribunal penalties team in the Department of Business, Energy and Industrial Strategy.

Of the 168 warning letters issued, 29 recipients have responded by making payments bringing the total previously unpaid awards recovered by the Department to just under £99,500.

60 penalty notices have been issued and one recipient has complied by paying the outstanding amount of £750 and a penalty of £187.50 which, under the arrangements of the regime, goes to the Government.

HM Courts & Tribunals Service issue booklet T426 to claimants, which accompanies every employment tribunal judgment, about the enforcement routes available to them to pursue unpaid compensation awards. The information can be found on page 6 of the attached booklet.

The option for claimants is to inform the Department for Business, Energy and Industrial Strategy’s Employment Tribunal penalties team of non-payment of their award, 42 days after the employment tribunal award was made to allow for appeal. For Acas conciliated settlements, the claimant can submit a complaint if payment has not been received by the date agreed as part of the settlement. The team will advise claimants on next steps to take to recover the unpaid awards.