The
Tribunals Service has released statistics, for the period 1 April 2011 to 31
March 2012, showing the types and numbers of claims pursued. At the same time,
Vince Cable continues to announce plans to reform employment laws to give more
flexibility and confidence to employers managing their workforce. But do they
marry up?
The
total number of claims received by the Tribunal has fallen from 218,100
(2010/2011) to 186,300. For the year 2009/2010 the figure was 236,100. The fall
represents a 15% drop in the number of claims being pursued in comparison to
last year and a 21% fall in comparison with 2009/2010.
The
government is concerned that too many Tribunal claims are being pursued and, according
to John Walker of the Federation of Small Businesses, “Too many small firms
don't take on staff because they fear being taken to an employment tribunal.”
Can this really be right when the number of Tribunal claims is dropping?
Vince
Cable has recently announced a proposal to reduce the cap for compensation in
unfair dismissal cases. The cap at present is £72,300. The Tribunal figures for
2011/2012 show that the median award of compensation in unfair dismissal cases
was £4,560 and the average award was £9,133. The vast majority of claims do not
get anywhere near the cap - so why reduce it?
The Tribunals
have also been making more costs awards, where the losing party pays the winner’s
costs. Costs should only be awarded in limited circumstances but it seems the
Tribunals are more inclined to award costs these days with the number of awards
rising from 487 to 1,411, with 1,295 of those awarded to Respondents i.e.
employers. In fairness one of those cases involved 800 Claimants being ordered
to pay costs, so if that case is counted as one a more accurate picture shows
an increase from 487 to 612 costs awards. Nevertheless, there has been an
increase in costs awards against a fall in the number of claims pursued. Plainly
the Tribunals are already exercising their powers to dissuade employees from
making unmeritorious Tribunal claims.
The
median awards of compensation for discrimination cases range from £4,267 in
religious discrimination cases to £13,505 in sexual orientation cases. Average
awards are higher but skewed by maximum awards, such as £4,445,023 in a race
discrimination claim. Of course there are going to be very serious cases which
warrant substantial awards of compensation, but the figures do not begin to show
that compensation is getting out of hand.
There
is so much discussion and consultation about reforming employment law and it
all seems to be pointing towards making it even more difficult for employees to
exercise their rights and gain access to justice. With the stats showing an
ever decreasing number of claims and limited awards of compensation, I’m not at
all persuaded there’s a need to change.
Dan Kindell - Solicitor
For further information on Employment Rights, please visit our website or call 0113 245 0733 and ask to speak with our Employment Rights team.
