Tribunal claims rise by 120% - Is your business protected?

17th January 2018

Employment Tribunal fees were abolished in July 2017 therefore making it much less costly for an employee to make a claim against their employer.

This has resulted in a rise in Employment Tribunal claims of 120%. The latest statistic on the claims entering the Tribunal system are: Single cases have doubled: 1,520 single cases in June and 1,358 in July; compared to 3,045 in August and 2,639 in September 64% increase in single claims and 63% increase in cases of multiple claims compared to the same quarter in 2016 Over 3,000 breach of contract claims made between July and September 2017 representing a 57.5% increase 9,300 Equal Pay claims made in between July and September 2017 representing a 274% increase A 130% increase in national minimum wage claims A 119% increase in failure to inform and consult during redundancy Over 5,500 claims unauthorised deductions from wages claims between July and September 2017 representing a 179% increase Over 4,300 claims Unfair dismissals between July and September 2017 representing a 41.8% increase. How does this affect you as a business? A Tribunal Claim can be a huge cost to your business in both time and money. The cost of seeking representation to defend a claim can range between £5000 and £15,000, without taking into account the amount of lost working hours for managers and staff involved. What you can't put a figure on though is the stress of the case and the impact upon the reputation of your business given that Tribunal proceedings are held in an open court, that may be immeasurable. How can I protect my business? There are many things you can do to protect yourself from a potential Employment Tribunal Claim. Up to date policies and contracts of employment: You should ensure that the correct documentation is in place. Legally, you must provide all employees with a contract of employment containing all necessary information within two months of them starting employment. You should also accompany this with a copy of your Staff Handbook. Act Swiftly: Addressing an issue at an early stage can often resolve it before it escalates. Managers should receive appropriate training and information to effectively deal with dispute resolution. Issues and concerns that are not addressed early on often worsen and progress into conflict between employee and employer before developing into a costly tribunal claim. Grievances: Every grievance must be dealt with. A grievance, raised either formally or informally is an early indication of a problem. Dealing with these problems effectively will prevent a dispute developing. Follow Your Procedures: Having very clear procedures which are followed consistently is vital to successfully managing a potentially risky situation to a satisfactory conclusion. Seek Advice: If you need support with your disciplinary and grievance procedures or have an ongoing situation which is progressing to tribunal, you have a number of options. You could seek case by case advice from a solicitor, hire in-house support, or consult with HR & Employment Law experts. How can we help? Here at Bhayani HR & Employment Law we have a skilled team of employment solicitors and HR experts. We can manage any Tribunal claim from start to finish, in the most cost-effective way. If you feel that you need to update and improve your policies, then please don't hesitate to get in touch with us. We can help you to identify whether you are adhering to current guidelines and put in place legally compliant policies and processes to minimise the risk to your business. We will agree a fixed cost for this work with you, depending on how much we need to do. In some cases, we can offer you free guidance. To view our full range of services, please visit our website. If you are interested in our Watertight HR package and would like a quote, contact us on hello@bhayanilaw.co.uk or 0114 3032300.

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