No sooner had 2011 got into its ill-starred stride then employers groups such as the British Chambers of Commerce and the Confederation of British Industry went into full-on moaning mode about the numbers of cases going before the Employment Tribunal. Yet their use of headline figures masked the fact that most claims never get before the tribunal bench.
It’s true that 236,100 claims were made in the year 2009-10, the last full year for which figures are available. But 164,000 of these emanated from multiple claims related to equal pay, issues arising from strikes at airlines and so on. But 73,000 claims were withdrawn, 70,600 were conciliated by ACAS and 20,100 were struck out at the first hearing. So getting on for 70% of unfair dismissal claims never go through the tribunal system fully.
Unfair dismissals – which bear the brunt of employers’ ire – added up to 50,900 claims. Some 12,200 were withdrawn, 22,400 were settled by ACAS, 3,900 were struck out before a full hearing and only 5,200 were successful – ie the Tribunal ruled in favour of the claimant.
Employers want the Government to make it more difficult to bring claims to tribunal. This largely applies to claims for unfair dismissal as discrimination claims relate to law based on edicts emanating from the EU and are, therefore, more or less untouchable unless the UK re-asserts its sovereignty and the Lib Dems become extinct.
The median award for unfair dismissal claims was £4,903 and the average £9,120. This is hardly massively life-changing territory.
Nevertheless, don’t be surprised if the Government pulls some wheeze to keep the BCC and CBI happy – probably raising the threshold for employment rights from one year to two.
As things stand, of course, employers have 11 months or so to judge if an employee is competent and to get rid of him/her if needs be. Would raising the threshold to two years mean they’ll let incompetents soldier on for 23 months?
The Government may also impose a fee for making a claim – but given most claims follow dismissals then the majority of claimants would be unable to pay, so would have to be given what amounts to legal aid.
Employers should be able to manage many situations that lead to unfair dismissal claims by improving their assessment and performance management processes – moaning about the numbers of claims is crying wolf.