Law Matters
Unpaid tribunal awards
Last year, nearly £400,000 of employment tribunal awards were not paid due to employers becoming insolvent, People Management reports, further to a freedom of information request it made to the Department of Business, Energy and Industrial Strategy.
The magazine speculates that these figures might be evidence of a practice known as “phoenixing”, where insolvency is used as a deliberate device to avoid payment of tribunal awards, with the insolvent business then re-forming as a new company.