Figures released by the Tribunals Service on 30 June reveal a steep rise in the number of claims brought against employers in England, Scotland and Wales. In the 12 months to the end of March 2010, 236,100 claims were brought to the employment tribunals, a 56% rise from the 151,000 claims last year. It is clear that the steep increase in claims this year is mainly attributable to multiple claimant claims, which rose by nearly 90% on the same period in 2008 to 2009.[1] This is exemplified by the fact that, as of the end of March, three fifths of the claims still to be dealt with by the Tribunals Service were multiple claimant cases relating to employment claims.
For the same period to March 2010, there were 57,400 claims of unfair dismissal brought by employees, compared to 52,700 in the previous 12-month period and 40,941 in the twelve-month period ending at the end of March 2008. The increase in unfair dismissal claims has undoubtedly been a consequence of the economic downturn. As well as complaints by employees about being made redundant, many of these extra claims will stem from employers facing up to the need to tackle underperforming members of staff.
Redundancy-based claims
However, looking at mass redundancies for instance, complaints that employers have failed to consult properly in such case have seen a decrease from last year's figures. In the 12 months to the end of March 2009 there were 11,400 such claims. This year, that figure has decreased to 7,500 indicating that the nadir of the recession is past, for the private sector at least. It remains important however for employers, who can sometimes feel frustrated at legal requirements to consult staff representatives about potential redundancies, to fully comply with the consultation obligations. Attempts to short-circuit the process can backfire and lead to steep penalties for employers.[2]
The multiple claimant cases, in which two or more people bring cases arising out of the same or very similar circumstances, are largely focused on equal pay, working time, TUPE and redundancy; and increasingly, these are brought with union support.
Age discrimination
Another notable development that the figures have brought to light is the significant increase in the number of age discrimination claims: 5200, compared with the previous year's 3800 claims. Laws protecting against age discrimination in the workplace have been around for a relatively short period of time. As employees are becoming increasingly aware of their rights in this area it is not surprising that we should see a rise in the number of claims.
Keeping up with employment regulation
Keeping abreast of employment regulations remains a big challenge for employers and it is therefore not surprising that so many legal challenges are being brought to court.
The key thing for employers to remember is that they should adopt clear and consistent policies and procedures throughout their business in order to comply with the law and ensure they are applied fairly and avoid any claims by employees. Training goes hand in hand with this as it helps employers ensure that a consistent message is communicated throughout the organisation.
Looking forward – and despite the new government’s commitment to deregulation, there is as yet no let up in the pace of change in employment law and it is likley to be some time before employers see any benefit. Expected changes include extensions to family-friendly rights, a phasing out of the default retirement age, with further rumours of changes to the collective consultation period for redundancies, and to the the rules governing the level of support ahead of strike ballots. The change of government has also led to uncertainty about planned legislation, although the Home Secretary has now confirmed that the Equality Act will come into force, and that many of its provisions will take effect from October 1.[3] The controversial vetting and barring scheme has been halted, however, pending remodelling to ‘common sense levels’.[4]
Uncertainty over the UK workforce will be maintained as a result of the cuts announced by the government to the public sector workforce. What will be interesting to see is how the unions position themselves in any ensuing disputes and how this impacts on the level of claims brought to employment tribunals in the UK.
[1] www.tribunals.gov.uk/Tribunals/Publications/publications.htm
[2] See also the James Baker’s article ‘Beyond the P45’ in The People Bulletin, 12 May 2009.
[3] See also Michelle Gray’s article ‘Some more equal than others’ in The People Bulletin, 29 June 2010.
[4] www.isa-gov.org