DON'T BECOME A STATISTIC!
The latest Tribunals Service annual report shows that over 45,000 more employment tribunal cases were received in 2007/08 than the previous year. The number of claims received was 189,348, compared to 143,474 in 2006/2007.It seems that Tribunal awards are getting bigger too. Personnel Today reported that unfair dismissal awards increased from £19.8 million in 2004/05 to a total of £26.6 million in 2006/2007. There is also the spectre of naming and shaming of employers in Tribunal claims. A decision by the Deputy Information Commissioner in October 2008 could lead to the revival of the public register of Tribunal applications. Employers should be aware that anyone can now make an application under the Freedom of Information Act to gain access to the names and addresses of employers who are parties in Tribunal proceedings.
So, how does your business avoid becoming a statistic? Some basic steps will include:-
Recruitment
- ensuring that your employment documentation, including employment contracts, as well as policies and procedures, are up to date. This should help to avoid arguments at a later date as to what was agreed in a particular case and clarify how your policies apply.
Employee relations
- maintaining good employee relations and accurate personnel records. You should promptly address employee grievances which could otherwise give rise to claims. This may seem obvious, but these steps are likely to help in avoiding Tribunal proceedings and if there are claims, these actions should help you to defend them and provide written evidence to support your case.
Restructuring
- carrying out proper consultation, selection and dismissal processes;
- considering whether to enter into compromise agreements to ensure that claims cannot be pursued after paying out enhanced redundancy packages.
The legal requirements will vary depending on the number of redundancies and the period over which they are to be made. A failure to comply with these legal requirements can result in large scale awards of Tribunal compensation, particularly where several employees are dismissed.
To find out more, please contact:
Mark Shulman (d/l tel: 0207 674 0566); or
Charlotte Cecil (d/l tel: 0207 674 0553)
Please note: the contents of this news bulletin are designed for guidance only and is not intended to be a substitute for detailed legal advice. Consequently, whilst every care is taken to ensure that the information is accurate, we cannot accept responsibility for any liability to any person as a result of any errors or omissions.
