A new Employment Tribunal regime on the way?
17/02/2011
By Nick Hobden, Partner and Head of Employment.
Over recent times, it seems like we have had to get used to annual increases to the number of claims filed with Employment Tribunals (ET). In many respects such increases have been unsurprising, bearing in mind the widening range of circumstances in which claims can be made and the relative ease with which they can be lodged. Previous attempts by the Labour government to reduce the ET’s workload by, for example, introducing the statutory disciplinary and grievance procedures arguably proved counter-productive. But the ConDem coalition is now having a go, to see whether it can enjoy a little more success.
The Department for Business, Innovation and Skills (BIS) has commenced a process of consultation regarding a range of potential measures. The measures are aimed at, among other things, reducing the burden on employers and making them “feel more confident about hiring people”. Of most interest is the proposal to double the qualifying period for unfair dismissal from one to two years. Initial estimates suggest that this measure alone could reduce the number of ET claims by 3,700 to 4,700 per year. But BIS is also consulting on a requirement for claimants to pay a fee before being allowed to issue an ET claim. This is likely to prove controversial, bearing in mind its potential implications for access to justice. At present, we do not know how any fee might be calculated. There is speculation that it could be calculated by reference either to the value of the claim or the amount that the claimant earned. Either way, the word on the street is that it could be up to £500.
In addition to the two headline-grabbing measures set out above, BIS is also considering initiatives aimed at:
- encouraging the early resolution of workplace disputes;
- making it easier to strike out 'weak' claims; and
- toughening up the costs regime.
It is fair to say that the majority of the proposals seem to favour employers; not before time I hear you cry. But one slightly bizarre proposal is likely to cause some concern among businesses, if introduced. It would require employers who lose an ET claim to pay to the Exchequer a sum equal to half the amount awarded to the claimant (subject to an upper limit of £5,000). However, like a parking ticket, the penalty might be halved if paid within 21 days. It is hard to see this measure as anything other than a fairly brazen attempt to raise money for a cash-strapped administration. Hopefully this is not something that will be taken forward.
The period of consultation ends on 20 April 2011. If you would like to contribute, you can do so here.