Are Employment Tribunals getting more expensive?
Employers
and the taxpayer were promised savings following the introduction of tribunal
fees but has that been the case? Despite an initial fall in the volume of
Tribunal applications since fees were introduced last July, the complexity of
cases and therefore duration and costs are eroding anticipated cost savings.
Whilst
many tenuous, malicious or spurious claims are deterred by up-front fees the
remainder are being up-scaled to ensure awards will cover costs. The latest
tribunal statistics show a 40% increase in complaints per application from an
average of 1.8 to 2.5 (during 2013). This is the unintended result of
introducing fees that can run to several thousand pounds for something like an
unfair dismissal case that goes all the way to an appeal hearing.
As
a result employers are facing complex and aggravated complaints which expose
them to inescapable legal fees and potentially unlimited compensation awards
that have the potential to damage their business.
Recent reports
highlighting extended and complex cases concerning whistle-blowing, sexual
harassment and equal pay show how time consuming and damaging these kinds of
cases can be to the business. Resulting bad publicity has added to the problems
for the organisations concerned.
If your
commercial customers have our commercial legal protection policy they will be cushioned
against such awards, legal costs as well as any tribunal fees awarded against
them. With a successful defence, all their costs would be indemnified and a
stressful situation averted.
David Haynes
Head of
Underwriting & Marketing
