New tribunal laws "too complicated"
21 Oct 05
Experts question whether employment tribunal rules now deterring good as well as frivolous cases
The complexity of the new rules that apply to employment tribunals has led to many employers claiming they are having to settle cases they could have won.
An article in today's Scotsman also claims that employees have said that the new rules could stop people with genuine grievances from using tribunals.
New rules for employment tribunals were introduced last October, making it mandatory for all employers to have minimum dismissal, disciplinary and grievance procedures in the workplace. The rules are aimed at deterring frivolous claims.
Recent figures have shown that the number of cases taken to tribunal has fallen by a quarter – 86,181 cases in the last year, compared to 115,042 the year before.
The article quotes a recent study by the CBI which found that half of the firms it surveyed saw tribunals as ineffective and decided to settle claims, despite receiving legal advice that they could win at a tribunal, to save time and reduce legal costs.
The TUC on the other hand is concerned that the substantial fall in claims has been caused by the new rules deterring employees from bringing a claim – even if they had a strong case.
David Walker, a partner and employment lawyer with Dundas & Wilson, said the system was overly complicated and that there was widespread confusion over basic issues, such as what a grievance is.