1 in 3 mistreated workers who win an ET never see a penny

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One in three mistreated workers who win an employment tribunal never see a penny

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Firms may now have to deposit money because rogue bosses are simply refusing to pay or going into liquidation to avoid settlements

Bosses are dodging payouts for mistreated staff in more than half of all employment tribunal cases - with one in three workers never seeing a penny they are owed.

Now the Tory-led Coalition has admitted the problem is so bad it wants new powers for judges to demand deposits from employers to pay up-front when they lose an employment tribunal or grievance claim.

Research for the Government found that many employers simply refused to pay leaving workers with genuine claims for compensation robbed of cash and justice.

And campaigners fear the problem could multiply problems for workers who now have to pay fees to bring a claim against rogue employers.

Under new rules brought in this July, it now costs £160 or £250 to lodge a claim, with a further charge of either £230 or £950 if the case goes ahead. Discrimination and dismissal claims attract the higher fee.

The Ministry of Justice also charges fees of £400 to lodge an appeal and £1,200 for a full hearing for people who want to challenge the decision of an employment tribunal.

But research found that only 49% of claimants who had been granted an award by an employment tribunal had been paid the amount in full.

A further 16% had been paid in part and leaves more than a third who had not received any money at all, even after enforcement action was taken.

Of those who were not paid their award without resorting to enforcement, almost half (46%) pursued their case through the courts - more than one in five of all claimants

Workers with larger awards - over £5,000 - who were not paid were more likely to report that the company had become insolvent or ceased trading (46% compared with 35% of those with awards under £5,000).

The reason most commonly given for non-payment was that the company no longer existed or had become insolvent or otherwise ceased trading (37%), while 17% were unable to locate the employer.

Frances O’Grady, TUC general secretary, said:“It is disgraceful that employers found guilty of mistreating staff are able to dodge compensating those whose working lives they’ve wrecked.

“Government action to clamp down on this abuse is welcome and long overdue. But with workers now facing heavy upfront fees to even take a claim, the fact is it has never been easier for bad bosses to get away with mistreating staff.”

In a statement, Jo Swinson, the Liberal Democrat employment relations minister, said: “We are determined to clamp down on businesses who fail to pay out. “Far too many cases are not being resolved leaving people out of pocket.

"Taking an employer to tribunal is a stressful enough process without having to face the possibility of not getting what you are entitled to if you win your case.

“Whilst this is primarily about justice for individuals, it is also important that there is a level playing field for the majority of honest employers who follow the rules. Rogue employers should not be allowed to simply get away with not paying.

“We will look closely at how we can tighten things up to make sure that people get what they are owed. This includes potentially making changes to the employment tribunal rules to give judges the power to demand deposits from businesses who they think might not pay up.

“We are also considering fixed penalty notices for late payment and naming and shaming employers who fail to pay out.”