Step-by-step guide to enforcing an employment tribunal award
by Peter Watt on 13 July 2011
In an ideal world, the defendant will pay the employment tribunal award once it has been made. Sadly, though, that is often not the case. Research commissioned by the Government showed that 39% of awards remain unpaid and only 53% are paid in full.
In 2010 the Government launched the ACAS and Employment Tribunal FastTrack system to make it easier and quicker to enforce an Employment Tribunal award or ACAS settlement.
What is the FastTrack system?
The new Fast Track scheme was implemented to significantly speed up and simplify the enforcement process.
The new scheme allows High Court Enforcement Officers (HCEOs) who are authorised by the Lord Chancellor to enforce employment tribunal awards and ACAS settlements under the authority of a writ of fieri facias (Fi Fa).
The writ of Fi Fa authorises the HCEO to seize goods from the defendant, normally the former employer, to sell at auction to recover the value of the award, the court fees, interest and the HCEO fees.
How is it different?
Before the FastTrack it was still possible to transfer an employment tribunal award to the High Court for enforcement, but the FastTrack system has made the process simpler and easier, reducing the number of forms required to just one.
Does it matter how much the award is for?
No. there is no minimum value for transfer to an HCEO for enforcement (there is for judgments and orders, but this does not apply to Employment Tribunal awards and ACAS settlements).
What does it cost?
There is a court fee of £60 to transfer the award and obtain the writ of Fi Fa.
The court fee is added to the amount to be recovered from the defendant. If enforcement is successful the claimant will be paid the award, the court fee and interest at 8%.
The HCEO’s fees are paid by the defendant.
There is no abortive fee charged by the HCEO if enforcement is unsuccessful (HCEOs have a set abortive fee for unsuccessful enforcement for judgments and orders, but this is waived for Employment Tribunal and ACAS settlement awards). The only cost if enforcement is unsuccessful is the £60 court fee.
Step 1 – choosing an HCEO
You can start enforcement as soon as the defendant has defaulted in payment.
You can either instruct your own HCEO, for example The Sheriffs Office, or you can contact Registry Trust, who will allocate an HCEO based on a rota system.
We would recommend you research which HCEO can provide the best service and has the best track record, rather than waiting to see who you’ll be allocated.
Step 2 – submitting the application
You will need to complete form N471 (for Employment Tribunal awards) or form N471A (for ACAS settlements) and send it to your HCEO along with the original order.
If you no longer have the order, you can get a certified copy at no cost by writing to:
The Secretary to the Tribunals
First Floor
10-0 Southgate Street
Bury St Edmonds
IP33 2AQ
Step 3 – adding interest
The HCEO will add the interest you are owed to the application to the Court at the rate of 8%.
Step 4 – enforcement
The HCEO will attend the defendant’s premises without warning – if it is commercial premises they have the right to force entry - and they will seize goods. In the majority of cases, the threat of seizure encourages payment. At The Sheriffs Office, we find that only 1% of cases results in the removal of goods.
Step 5 – payment
Payment is made to the claimant approximately 14 days after the HCEO has either received the money from the defendant or from the sale of goods seized.
© Sheriffs High Court Enforcement Ltd. Please contact us to request permission to reproduce this article.
Disclaimer: The statements and opinions expressed in this article are those of the author and do not necessarily reflect those of Sheriffs High Court Enforcement Ltd, trading as The Sheriffs Office. Sheriffs High Court Enforcement Ltd does not take any responsibility for the views of the author. The author will not be held responsible for any comments posted by visitors to this site. Please note that this article does not constitute legal advice. The author has used his best endeavours to make this article as accurate and complete as possible, but requests that the reader be aware that the law of England and Wales frequently changes. The author strongly advises the reader to take legal advice before embarking on any enforcement action.
