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The Department for Business, Innovation & Skills recently ran a consultation - “Resolving Workplace Disputes” - which looked at the workings of the Tribunal Service.
A survey carried out by law firm Pinsent Masons found that only 3% of firms are satisfied with the current system while 97% think it is weighted in favour of claimants.
Excluding any award made, the average cost for an employer to defend themselves at tribunal is estimated at £8,500. There is a clear benefit from taking out insurance to help with what can be an expensive process, which is often seen as being one-sided.
Particular issues identified included the length of time it takes for the system to deal with claims, the number of hearings which are cancelled at short notice and inconsistencies in the system. 81% of respondents felt that tribunals differed between regions and 58% believed they did not operate consistently, even within the same region.
Most companies in the survey were in favour of a new measure being introduced to force disputing companies and employees to talk through issues before employees can make a claim. Further, 62% of respondents would like ACAS, the conciliation service, to be given the power to make recommendations following the pre-claim discussions.
We wait to see whether there will be any changes to the way employment disputes are settled.
