Employment Tribunals
Employment tribunals are a costly, time consuming, and emotional experience for employers and that is just if you win. If you lose, the costs can be devastating. With over 60,000 claims made in a single year, many employees now see a tribunal as a reasonable ‘punt’ with minimal risk to themselves. Get support with NewmanHR’s Employment Tribunal Defence London Services.
Employment Tribunals
The Real Cost of Conflict
Many employers budget for unfair dismissal risks but overlook the far costlier threat of discrimination claims. While dismissal awards are often capped, discrimination payouts can be unlimited. When you combine these awards with the typical defense costs and potential reputational damage, the financial impact becomes clear.
It is not just about the legal fees. If a judgment goes against you, the compensation awards can be severe. Here is what the average payouts look like across different claim categories.
Average Awards (If You Lose)
Prevention Strategy
How to Avoid a Tribunal
Rising tribunal numbers are often due to employees misinterpreting complex laws like TUPE or Wage Comparisons. Don’t leave your defense to chance.
1.
Review Policies: Regularly update all employment policies to ensure compliance with existing legislation.
2.
Communicate: Reduce uncertainty and avoid surprises by keeping staff informed at all times.
3.
Grievance System: Resolve grievances formally and immediately as soon as they arise.
4.
Disciplinary: Ensure proper procedures are strictly followed for any disciplinary issue.
5.
Redundancy: Always follow the formal “3 Step Procedure” before making anyone redundant.
6.
Disability Steps: Ensure you are seen to have taken “all reasonable steps” to address the situation.
7.
Mediation: Use conciliation and mediation where appropriate before lawyers get involved.
New Rules
Tribunal Powers
Tribunals now combine pre hearing reviews and case management into one Preliminary Hearing.
Crucially, the Tribunal has the power to strike out cases immediately if they believe there is no reasonable prospect of success saving you the cost of a full hearing.
Compensation Limits
The 12 Month Cap
A cap of 12 months’ pay applies for compensatory awards in unfair dismissal claims.
This applies where the amount is less than the overall statutory cap.
The Alternative
Mediation: The Smart Route
The government is investing heavily in ACAS and mediation to lessen the burden on the tribunal system.
Using external mediators (or training your staff) can negotiate an exit strategy for a disgruntled employee without the “full blown” legal battle.
Facing a Tribunal? Don't be scared.
If you cannot reach an agreement, engage competent representation. Go in there with your representative and be positive.
Recommended Further Information
If you are facing employment tribunals in London, Finchley, or the Home Counties, our expert representation can help mitigate your financial risks.