UNFAIR DISMISSAL?

UNFAIR ON WHO?

It’s an expensive business being an employer, particularly when things go wrong. For many, it comes as an unpleasant surprise to lean that, unlike legal action in the County Court / High Court, claims in an Employment Tribunal are all too often expensive, even if their actions are ultimately upheld.

Rules in Employment Tribunals mean that, save in exceptional circumstances, an unsuccessful employee will rarely be ordered to pay costs incurred by their employer in defending the claim. Depending on the nature of the case, such costs can be substantial. Of course, the reverse is also true for employees who win, often having to fund their own costs from compensation.

These rules were always part of the objective of making Employment Tribunals accessible to everyone, without legal representation. However, the law is now so complex and fast changing that even specialists have to work hard just to keep up. The reality is that an ever increasing number of employers find themselves shelling out money to get rid of claims that they would otherwise defend, simply because it is cheaper to make a ‘nuisance value’ payment than to pay the costs of defending themselves. There are even reports of individuals making blanket job applications, looking to bring claims on the basis that a good percentage will pay out a ‘nuisance value’ settlement, rather than fight. Other employees without sufficient length of service to claim unfair dismissal, frame their claims in other ways to try to get round the problem, inevitably making the claims more complex and expensive to defend.

All is not lost - Changes are coming (albeit slowly), and even though Tribunals are still reluctant to use their powers to award costs, there are other ways of dealing with apparently bogus claims. It is possible to nip a poor or bogus claim in the bud before it gets to a final hearing and, the earlier this is done, the bigger the costs saving. However, the alternative approach starts before such claims even arise.

Whilst there is little that can be done to prevent a claim being brought out of bad faith, invariably, good communication is the key to avoiding virtually every kind of dispute. Further, having the right systems and procedures in place and handling disputes appropriately can prevent a claim being issued. Employers who have no in-house personnel function may struggle most. At Sandersons we ensure that clients always have someone on hand to help – the same as having your own, expert in-house personnel department but at a fraction of the cost and without dealing with face-less individuals on a call centre. Additionally, there are affordable insurance products available to support such a service that will cover both the cost of representation and any compensation (if awarded).

If you would like to know what we can do for your business, contact:

Stephen Dixon

Sandersons Solicitors

17-19 Parliament Street

Kingston upon Hull

HU1 2BH

Tel 01482 324662

Fax 01482 223110

Email sdixon@sandersonssolicitors.co.uk

Source: Yorkshire Today, September 2006