Eastbourne MP Stephen Lloyd has welcomed a report into payments ordered at employment tribunals but said more needs to be done to ensure people receive costs and damages awarded to them.
He said a number of his constituents have yet to be paid after an Eastbourne-based company was taken to an employment tribunal after failing to pay staff.
The Department of Business, Innovation and Skills released the report about employment tribunals and found that only 49 per cent of people received payment in full following a successful claim at a tribunal.
Mr Lloyd said the company was taken to tribunal and lost numerous times but because of the lack of enforcement, the staff never received payment.
Citizens’ Advice has responded to the report and called for the Government to play a proactive role in enforcing employment tribunal awards.
Mr Lloyd said, “I have been campaigning with Citizens’ Advice for an investigation into unpaid tribunals for 18 months, as I have seen the shocking consequences of their non-payment within my own constituency. I’m glad that the Government has finally woken up to the outrageous abuses of this system, but now the problem has been acknowledged and its significant scale recognised, there is a lot of work to be done to close the loopholes that rogue employers have, frankly been abusing for decades.”