The Coalition Government claims that its proposals to the employment tribunal system are necessary to give businesses that want to grow the confidence to hire more staff.
But employment lawyers have warned that the reforms will have the greatest impact on the poor and impede access to justice.
Under the new measures the qualifying period for employees to be able to bring a claim for unfair dismissal will increase from one to two years while a tribunal fee will be introduced for claimants.
Russell Jones & Walker partner Clive Howard said any reform proposals would do little to help a resource stricken service.
He claimed: “The existing system, albeit creaking with the strain of a lack of personnel, works well. What’s needed is additional resource to make sure that the existing system is given every chance to work at its best.
“The introduction of a tribunal fee to be imposed on the claimant will raise an additional barrier to perfectly bone fide claims and will disproportionately affect the less well off.”
Thomas Eggar partner Esther Smith added: “The increase in the qualification period for claiming unfair dismissal, from one year to two, is most unlikely to make any positive impact.
“Those people with between one and two years’ service will still issue proceedings for other claims, such as discrimination or will try to argue that their dismissal falls within one of the categories for which no qualifying period of service is needed.”
The government consultation includes plans to increase disclosure obligations on the claimant and withdraw expenses payments in an effort to encourage settlement. Employers, meanwhile, will face heftier penalties if they are found to be in breach of employees’ rights.
Plans for compulsory mediation for all parties have also been mooted. Such proposals echo the short-lived Statutory Disciplinary Dismissal and Grievance Procedures, which were scrapped in April 2009, Howard claims.
“The outcome of these procedures was extra layers of burden, hours, costs and disputes and no reduction in claims in the tribunals,” he said.
katy.dowell@thelawyer.com
Readers' comments (4)
Beth | 28-Jan-2011 4:22 pm
Most ET claims settle anyway. It's only a minority (25% on the most recent figures I've seen) that go to court. So it seems to me like the system is working.
I'm a FRU volunteer and have dealt with claims where the employer acted completely unreasonably and then acted completely unreasonably again in not settling at the first sign of a claim.
None of my FRU clients have been earning close to the £400 statutory redundancy ceiling for weekly pay. Some would not have been able to file a claim against their employer if they had had to pay anything up front.
While sometimes ET claims have no legal merit, it's relatively rare for a claim to be wholly frivolous/vexatious. The discrepancy comes when the employee's feelings are hurt or they genuinely feel hard done by, even when the employer has acted wholly within the law. Sometimes just having "their day in court" has value in repairing the ill feelings, even if the employer ultimately prevails.
Employment law is already so heavily slanted towards the employer. This is just another scare story from the Tories, who are bent on extinguishing as many of the rights of ordinary people as the Lib Dems will let them get away with.
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Anonymous | 1-Feb-2011 11:04 pm
Beth,
I doubt whether the coalition are bent on extinguishing rights - rather they see the success of businesses as the key to economic recovery. But the employee's (especially the poor ones) will once again have to take one for the team.
I expect the FRU offices will be bulging with discrimination claims as employee's seek to get round the 2-year rule!
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Beth | 3-Feb-2011 5:11 pm
I doubt there will be a big increase before the change comes in. First, most workers don't know their rights.
Second, the person would have to be dismissed to claim unfair dismissal. So they would need to be dimissed before the new rule comes in but with between one and two years' service. I can't imagine that will apply to too mant people. I guess it's possible that someone could quit and then try to claim unfair dismissal, but it seems like a risky strategy when you could just see if you can cling on to your job long enough to make the two-year threshold.
Third, there is no minimum period for certain types of unfair dismissal, including dismissal related to pregnancy or maternity, whistleblowing etc. I suspect we will see more people with less than 2 years' service try to claim that their unfair dismissal comes under one of the automatically unfair reasons and therefore there is no minimum qualifying period.
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Anonymous | 6-Feb-2011 1:33 pm
As an employer I find this topic of great interest. The idea that employment rights are already "slanted towards employers" is laughable. Everybody knows how the current system operates...the legal profession earn fees advising employers that tribunals are unpredictable places generally hostile to employers, hence 75% of cases settle outside tribunal.
Claimants face a path of zero resistance in submitting speculative and dishonest claims, the costs of which all fall onto the employer. The ET almost never award any costs and appear to adopt the position that the plucky employee is taking on the faceless conglomerate who has deep pockets and can afford to waste time and money.
The part of trade unions is also ignored in the analysis of this topic. Unions generally provide free legal assistance to their members and invariably support a claim regardless of merit. They understand the enormous cost and disruption these cases cause and play the system of settlement outside tribunal.
As a final observation the employer has a far greater burden of proof placed upon them and must maintain expensive and extensive records...any weakness in which is exploited to present the defendant as a 'bad employer'.
The claimant basically makes accusations with minimal requirements of proof.
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