After much fanfare and with the clear intention of reducing the burden on business by trying to reduce the number of spurious or vexatious claims being made to Employment Tribunal, the introduction of charges for claimants will be introduced on 29th July 2013.
This is a highly significant moment and is very welcome all round. Over recent years Employment Tribunals have become a regular source for opportunists who bring claims on sometimes very dubious grounds in the hope of extracting a settlement from their previous employer. Defending claims at Employment Tribunal is expensive, they are also very time-consuming and distracting, particularly for smaller businesses that don't have the resources (or deep pockets) that many larger business do.
There is little doubt that as a society we are far more happy turning to the law for redress than we were before and certainly from my own experience, I've seen some highly questionable Employment Tribunal claims that may well have been written at about midnight on a Friday night after a lengthy visit to the local pub!
In principal then the idea of introducing charging seems a sensible approach to try and deter this type of claim and is to be applauded. One of the most pleasing aspects of the new rules will see Employment Judges sifting Employment Tribunal claims before hearing to see if the claim has a realistic prospect of success and if not whether the claim should be dismissed.
Whilst there has been much positive support for these changes and I include myself as a supporter, what effect will these changes have on Employment Tribunal claims that are submitted and how will that effect you as business owners and managers?
What hasn't received much "broad" commentary is the fact that over recent years Employment Tribunals have been gradually moving towards becoming Employment Courts.
We've seen the "Chair" of the Tribunal become a Judge and we see that Employment Appeals Tribunals will now be heard by a Judge sitting alone with no lay members in support. I don't think it will be long before Employment Tribunals are heard by Judges sitting alone. It was not too long ago that barristers were a rarity in Employment Tribunal, they are expected nowadays and respondents (you) are rarely under-represented in Employment Tribunal.
So how will the changes made this July affect Employment Tribunal workings?
Recent years have seen Employment Tribunal become far more adversarial, much like other courts in the UK and I think that fee paying will affect their workings.
In my opinion the introduction of fees will create an even more confrontational environment. Whilst I am certain that the judiciary will retain their same high standards and the position in law won't change, what will change is the expectations of the claimant and as a result the pressure on the claimants' advisers will be far greater to achieve a result. The net outcome of this is that that the respondents (employers/you) may be placed under even greater scrutiny to show that they have acted reasonably and they will be pressed far more aggressively to prove that this is the case. In simple terms, the bar will be raised as far as proof is concerned
In essence the changes will mean that employers who find themselves in an Employment Tribunal will have to prepare better than ever before. If respondents don't prepare better and the claimants' solicitors do press harder for a result in their favour, an additional consequence may be more decisions found in favour of the claimant than before. This in turn may lead to more claims being made as claimants may feel that paying fees might give them a better chance of success.
As far as employment law is concerned the floodgates of litigation opened a long time ago and it going to take something really spectacular to close them.
So as a business what do you need to do?
Well the most important thing is not to think that life regarding employment law suddenly becomes easier after 29th July 2013, the same rules still apply and you have to apply them reasonably and be seen to do so.
So don't "switch off" regarding employment law. This is a good time to review and check your practices, processes and policies to make sure that they are current, legal, apply to your business and that they are properly communicated and understood by both your managers and your employees.
As the world of the Employment Tribunal becomes more like another court of law, it certainly isn't a good time to try and do everything yourself.
Don't try and be an "expert in everything," particularly in the world of employment law, it's too risky, too time consuming and very distracting. Make sure you have up to date, effective support that works for your business.
Most people don't realise it yet, but these new changes are going to have a profound effect on this area of law and you need to keep pace or risk the consequences.
Cream HR takes great pride in understanding how to apply current employment law to businesses to help minimise the risk of claims whilst maximising the performance of your employees. For an initial assessment of your needs, with no obligation, call us on 01543 308642 or email us at info@creamhr.com
Anthony Sutton
Managing Director
Cream HR Ltd
