Employment Tribunal claims cost businesses a fortune – not just in terms of legal costs but in management time, personal stress, damage to reputation and, of course, the potential Tribunal award itself.
Even if you follow all of your procedures and take expert legal advice, there is nothing to prevent former employees, current employees or job applicants bringing a claim, particularly as there is now no fee to pay. They have everything to gain by ‘having a go’ and, unfortunately, employers have everything to lose.
This is why businesses need protection from the consequences and costs of Employment Tribunal claims. It is always best to take proper legal advice prior to dismissing an employee or if you are faced with a serious allegation - for example, harassment or discrimination. Putting the right protection in place at this stage is vital.
If a disgruntled employee or job applicant is contemplating bringing a Tribunal claim, the first step in the process is for them to contact Acas to commence what is known as the Early Conciliation process. If this happens, Acas will contact you to see whether you are interested in trying to resolve the matter. In the past many employers would simply say 'no' and wait to see if the employee coughed up the money to present a Tribunal claim. Now that fees have gone, however, employers would do best to engage in the Early Conciliation process at least to find out what the employee is looking for and what they are doing to get another job. The amount of compensation an employee can claim is based largely on tangible losses – their loss of income – and so, if they have got another job, this will reduce the potential value of the claim.
Once Early Conciliation has concluded, if no settlement has been reached, the employee will be able to present a claim to the Employment Tribunal and you will be sent a copy. You then have 28 days in which to file your defence. This is a crucial document and should be prepared for you by an expert to ensure that all aspects of the claim are properly defended and any weaknesses in the claim exploited to your advantage.
Ministry of Justice statistics show that claims lodged in Employment Tribunals rose by an incredible 90% between October to December 2017 compared to the same quarter in 2016. This is undoubtedly a result of the removal of fees and is putting considerable pressure on the Tribunal system, with claims taking longer to process and lengthy delays in hearing arrangements.
I have been handling Employment Tribunal claims on behalf of businesses for over 20 years. The risks and potential costs to employers has increased considerably during that period. There are more possible claims employees can bring and a 'litigation' culture, as well as social media, encourages people to present claims.
Employers need clear guidance before and during a Tribunal claim so that they know the likely costs involved and receive clear advice as to the risks involved and the claim’s potential value. You also need to be guided as to what you should do to have the best chance of winning the claim and have an experienced advocate who will represent you every step of the way, including at the hearing itself.
If this is the service you are looking for, I can help. Working alongside you and/or your HR managers, I will also manage your employees to reduce the impact of claims on managers and others who may be called as witnesses and, if you wish, negotiate the best possible settlement on your behalf. I will also advise you on any steps you can take in your business going forward to reduce the risk of further claims. Please call me on 07595 369485 if you would like further information or assistance.
