When the news that the Employment Tribuanl fees were being abolished broke in July 2017, we knew that there would be an increase in the number of claims made against employers.
The Tribunal has published its second set of statistics since the fees were abolished and what is emerging is a very worrying picture for employers:
- Single ET claims received have increased by 90%!!!!
- Single ET claims disposed of have increased by 21%
- The backlog of single ET claims has increased by 66%
Also, from the launch of the ET refund scheme, in the period from 1st October to 31 December 2017, 4,800 applications for refunds were received and 3,400 payments were made with a total value of £2.8m.
Before July 2018, claimants had to pay £250 to issue a claim and then up to £1,200 for their claim to be heard by a Tribunal. For most. this may have been financially out of reach or simply not worth the risk. As claimants no longer have to pay anything to issue a claim, there has been a significant rise in the number of claims being brought. Though the likelihood of having a claim brought against you has increased, this does not mean that you are not able to be confident and robust in your people management – you can’t run a business walking on eggshells.
Making sure you are managing your people issues properly will give you a better chance to spot and address any potential claims before they escalate. So, if you are still muddling your way through HR and Employment law issues in your business, now would be a good time to stop and get some help as defending or settling a claim can be very costly, time consuming and stressful.
If you are in doubt about how to handle a situation you currently have going on in your business then get advice from experts (such as ourselves) to give you the peace of mind you need to get on with the day job. Stop the headache before it causes a migraine!