The latest statistics from the Employment Tribunals record a 165% increase in employee claims.
What has happened?
There has been a marked increase in claims and tribunal hearings since the abolition of fees in 2017 and both employers and tribunals are struggling to cope with the influx. At least one employment tribunal is listing cases into 2020, with twitter referring to the Manchester Employment Tribunal listing longer hearings into 2021.
What does this mean for employers?
The removal of employment tribunal fees is clearly driving an increased risk of litigation. Whether these claims are justified or not, they distract management teams from their day jobs and inevitably cause additional legal costs as hearing dates are extended.
What should you do?
The risk of employee claims can be managed in a number of ways – Prevention, Preparation and Pricing:
Prevention: Line manager training can ensure that your operational managers are aware of alarm bells and take preventative measures to avoid the grounds for claims arising.
Preparation: Providing witness training to ensure that your staff are fully prepared in the event that the claim goes to tribunal and they are required to represent the business as a witness to support your defence.
Pricing: Fixing the costs of each phase of the process. This provides full transparency in relation to the procedures and costs involved from the outset of the claim, which assists cash flow and enables you to make informed, commercial decisions at each stage.
For further guidance, please contact Rebecca Jorgensen, Head of Employment, on +44 (0)1293 603642 to start a conversation.
You can also find out more about our employment law services here.
To start a conversation about how we can help you to get the outcome you want
Call us on +44 (0)345 521 4545 or send an email.