Unpaid Wages: How to Enforce Payment from Employers

When an employee or worker is not paid what they are owed, whether it is wages, holiday pay, redundancy pay, tribunal compensation or another legal entitlement, the law in England and Wales provides a number of remedies. Employers are legally required to pay agreed wages on the correct pay day. Failure to do so may amount to a breach of contract or statutory rights and could give rise to an employment tribunal claim, civil enforcement, or other legal action. This guide explains the legal steps available, statutory time limits, enforcement options when an employer refuses to pay, and common practical issues for claimants.

When an Employer Fails to Pay Wages or Other Entitlements

Unpaid Wages and Statutory Obligations

Employers must pay employees and workers the salary or wages stipulated in their contracts on the agreed pay dates. They must also pay at least the National Minimum Wage/National Living Wage where applicable. Failure to pay can affect financial wellbeing and is often unlawful. You should first check your contract, payslips and pay dates to confirm whether pay is overdue.

Raising the Issue With Your Employer

If your pay is wrong or unpaid:

• Raise the issue informally with your manager, payroll team or HR to check whether a mistake has occurred.
• Follow up in writing to create a record of your request.
• If informal contact does not resolve the issue, raise a formal grievance with your employer explaining the amount owed and the basis for your claim.
• Include calculations, contractual terms and any evidence such as timesheets or payslips.

Resolving the matter internally might avoid legal proceedings.

Legal Actions for Unpaid Wages or Compensation

Employment Tribunal Claims

If informal or formal approaches do not resolve the issue, you may be able to bring a claim to an Employment Tribunal. Common claims include:

• Unlawful deduction from wages (for unpaid or underpaid wages including holiday pay).
• Other statutory claims where pay issues form part of a broader dispute.

Time limits are strict: you typically have three months minus one day from the date the payment was due to start a tribunal claim for unpaid wages or deductions.

If the tribunal finds in your favour, it will issue an award/judgment specifying the amount the employer must pay. The tribunal cannot enforce its own decision directly; payment is expected when the written judgment is sent to the parties.

Making a Tribunal Claim

Steps include:

• Attempting early conciliation through Acas before submitting a tribunal claim form.
• Filing the appropriate claim form with the tribunal within the statutory deadline.
• If successful, the tribunal calculates what is owed, including arrears of pay and any applicable interest.

Redundancy and Insolvency Situations

If an employer is insolvent (for example, in liquidation or administration), repaying tribunal awards or wages may be difficult. Claimants can potentially claim certain statutory payments from government sources such as the Redundancy Payments Service, but other money owed may not be recoverable through employer enforcement.

What Happens If an Employer Still Doesn't Pay

When an employer does not comply with a tribunal award or refuses to pay owed wages:

Contact Them and Try to Resolve

Contact the employer in writing, requesting payment and specifying a reasonable deadline. This may prompt payment without formal steps.

Government Penalty and Naming Scheme

You can notify a penalty officer at the Department for Business and Trade if an employer fails to pay a tribunal award. The process is:

1. Submit a penalty enforcement form or email the department.
2. The employer will receive a warning notice notifying them that a penalty may be imposed.
3. If they still do not pay within 28 days of the warning notice, they may receive a financial penalty and, with your consent, be publicly named on GOV.UK.
4. A penalty is usually a percentage of the unpaid amount (commonly around 50%, subject to statutory limits).

The naming scheme is intended to encourage compliance through reputational pressure.

Enforcement Through the Courts

If the employer continues to refuse to pay, you can ask a court to enforce the debt:

• In England and Wales, you can apply to your County Court to register the tribunal award as a civil judgment for a debt.
• Alternatively, use the Employment Tribunal Fast Track Enforcement Scheme by filing Form EX727. This involves a High Court Enforcement Officer (HCEO) seeking to recover the award on your behalf.
• Once registered, enforcement methods include writs of control, attachment of earnings orders, third party debt orders or charging orders against the employer.
• Court or HCEO fees are usually added to the amount the employer owes if enforcement succeeds.

These procedures give claimants more powerful tools to compel payment but require administrative steps and possible fees.

Interest on Unpaid Awards

If an employer does not pay within the period set by the tribunal (commonly 14 days), interest at 8% per year may be added automatically to the unpaid amount. This serves as additional compensation for the delay.

Practical Considerations and Risks

Appeal Period

You cannot take enforcement steps while the employer has a valid appeal outstanding. Typically, employers have 42 days from the date of a tribunal judgment to appeal to the Employment Appeal Tribunal. Enforcement is delayed until that period ends or an appeal is dismissed.

Ability to Pay and Insolvency

If the employer is insolvent or has ceased trading, enforcement may be difficult because there may be no assets to recover. In such cases, even successful enforcement action may not result in actual payment. You may need to explore statutory schemes for certain payments or settlements under insolvency rules.

Costs of Enforcement

Court and enforcement fees are generally added to the amount the employer owes if recovery is successful. Fee remission may be available for claimants on low incomes or receiving certain benefits.

Key Takeaways

When an employer does not pay wages or a tribunal award in England and Wales:

• Start by raising the issue with your employer both informally and formally.
• Consider employment tribunal claims for unpaid wages or unlawful deductions within strict time limits.
• If you win at tribunal but the employer still does not pay, you can use the government penalty and naming scheme and initiate civil court enforcement through the County Court or High Court enforcement officer schemes.
• Enforcement may involve writs of control, attachment of earnings, or other methods designed to recover debts.
• Interest and enforcement costs can be added to amounts owed, but enforcement can be constrained by insolvency, appeals, or lack of assets.

Understanding these options helps employees and workers navigate the enforcement landscape when employers fail to meet their legal obligations.

James William Steven Parker

James is the founder of UKLegalGuides.com and a former agent at the Ministry of Justice (UK). With a background in processing legal claims, he launched this platform to make the laws of England and Wales accessible to everyone.