A raft of new legislation has reinforced employee rights, and the Tribunals Service recorded a 15 per cent rise in employment tribunal claims last year. Employment tribunals can be expensive, time-consuming and stressful, and it pays to know how to reduce your risks in a dispute
Ron Woods (RW), assistant director of individual conciliation policy at Acas, explains how to prevent employment tribunal claims and what to do if one is made against you.
What claims do small firms most commonly face?
RW: Acas conciliated on around 67,000 employment tribunal cases in Great Britain last year. Of these, the most common were for unfair dismissal. Claims relating to unauthorised deductions from wages or breach of contract are also common reasons for tribunal claims in small firms.
What can I do to prevent claims?
RW: Let employees know about your firm's rules and policies and follow workplace procedures diligently. For example, in the event of a workplace dispute it's essential to follow the three-step discipline and grievance procedure. Having the right procedures and following them will help you avoid most potential claims, and leave you better placed to defend yourself in an employment tribunal.
How will I know when an employee makes a claim?
RW: The Tribunals Service will serve a claim against you and you have 28 days to respond in writing. If you don't, the tribunal can proceed without you and you risk losing the opportunity to defend yourself.
What last minute measures can I take to avoid court?
RW: After being served a claim, try to negotiate an out-of-court settlement rather than going all the way to a hearing. Acas will also be sent a copy of the claim and contact you to explore the possibility of settling it. Most claims don't make it to a hearing - three-quarters are settled or withdrawn.
How can I prepare my defence?
RW: If the claim proceeds to court, you will need to prepare carefully. Assemble any documentary evidence, both about the matter that led to the claim and how you handled it, and identify any key witnesses to give evidence. You can choose to represent yourself or hire a solicitor.
What will happen at the hearing?
RW: An employment tribunal is less formal than a court hearing, but it is still a judicial process. Even if you are represented, you will have to give evidence under oath and undergo cross-examination. The length of hearings varies; an unfair dismissal case will typically take a day, but discrimination claims can take much longer.
What are the possible outcomes?
RW: Unlike civil court cases, it's rare for costs to be awarded against the losing party, so even if you win the case, you will probably have to bear the cost of any representation, plus your own and your witnesses' time away from work, as well as enduring the discomfort of going through such a challenging experience. And if you lose an unfair dismissal case, for instance, the financial award can be substantial.