Employment Tribunal and Universal Credit

[UC989]

Hi,

I've searched and searched for an answer to this and can't find it. I'm hoping someone will be able to help.

Under JSA if you won an employment tribunal you had to pay back any JSA received from the award. But if you settled 'out of court' you didn't have to pay back the JSA from the settlement amount.

Does the same apply to UC? Or would a settlement 'out of court' be classed as earnings?

Thank you.

[UC989]

For anybody who is searching for an answer to the same question. I have an update, of sorts.

I put in a written request the the DWP for an answer to this. Basically the reply said it boils down to how you are paid. If you settle outside of court and it’s paid by your old employer and it’s logged (if that’s the right word?) with the ‘Real Time Information’ (RTI) tax system. Their computers will flag it up and it will count. If say for example the respondents lawyers pay you and it’s not logged on the RTI they aren’t concerned. Unless the amount is over or puts your savings over £5.5k. They also said that if you won your benefits wouldn’t be deducted.

I have serious doubts about the accuracy of that though. Firstly I can’t see the government giving away all that returned money if you win. I suspect it will get deducted as it is with JSA. As it is an order of the court and the respondent pays it (as per the old JSA) direct to the DWP (as far as I’m aware). I suspect the people in the department I asked wouldn’t know about it.

Secondly, just because the RTI system automatically flags it and takes account of the money doesn't mean it’s correct as per the conditions of UC. As an example, if you are paid monthly and your next months payment gets paid early due to the way the dates fall. The RTI system thinks you have been paid twice in one month and takes it into account. But it shouldn’t and you have to apply to get the money back. This could be the case here.

I tried and tried but I couldn’t get an answer I could trust. The answer I got from CAB contradicted the information I got from the DWP. You could well get money deducted when they have no right too. But to get it back you are going to have to appeal and know the statute which applies. But I suppose it could go the other way and you could keep it when you aren’t meant too.

I tried to look it up in the UC legislation. But from what I could see there is no one document which explains it. There is new UC specific legislation. But some of the documentation I was reading just referred too older JSA legislation and it said replace the words JSA with UC. I also couldn’t see clearly what legislation superseded other legislation. Confused? I know I am!

If I win my case I’ll update again.