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Increase in complaints against dismissal

12 February 2010

While overall claims to tribunal fell last year, the number of cases about unfair dismissal and redundancy pay rose, says employment lawyer Emma Hawksworth.

Employment tribunals accepted 151,000 claims in 2008/09, a 20% decrease on the previous year.

This is thought to reflect the fact that there were a large number of multiple claims brought by airline cabin crew in 2007/08 and, with these claims excluded, the decrease was 4%.

Taking all multiple claims out of the picture, there was a 15% increase in the number of single claims brought.

As is perhaps to be expected in the current economic climate, claims about unfair dismissal, redundancy pay and breach of contract rose considerably when compared to the previous year.

In particular, there were 2.5 times as many claims about failure to inform or consult during redundancy when compared to the previous year.

The figures are found in the annual report published by the employment tribunal service that details the claims brought and resolved.

Discrimination claims difficult

Considering all claims, 32% of those lodged were resolved with the assistance of Acas and 33% were withdrawn by the employee – this would include cases where the parties reached a settlement other than via Acas, as well as those where the employee decided not to continue.

The remainder were determined by the tribunal, with only 13% of claims brought succeeding at a hearing. More than half of unfair dismissal claims had a successful outcome for the employee: 10% at a hearing and 42% resolved through Acas.

The figures suggest that discrimination claims were particularly difficult to bring. Last year, only 3% of sex, race, disability, and religion or belief claims were successful at tribunal; only 2% of age and sexual orientation claims succeeded.

Many claims will have been settled before a hearing, but this illustrates how difficult it can be to satisfy a tribunal of discrimination.

Compensation and costs

Awards of compensation continue to be modest other than in exceptional cases. Median average compensation in unfair dismissal cases was a little over £4,000 in 2008/09.

For sex, race and disability cases, the median compensation was £5,000 to a little over £7,000. Age discrimination compensation was lowest at £3,000.

These figures include compensation for any financial losses as well as awards for injury to feelings.

The general rule in employment tribunal claims is that each party has to meet its own costs, irrespective of who wins. Orders to pay the other party’s legal costs are rare. Only 102 employees, and 265 employers, received an award of costs last year.

Overall, the statistics reflect our experience of employment tribunals: discrimination claims are particularly difficult claims to bring, and compensation tends to be modest other than in unusual cases.

When these factors are considered together with those which the statistics cannot show – such as the personal impact of bringing an employment tribunal claim, and the protracted and stressful nature of proceedings – it seems that for many employees, informal methods of dispute resolution such as early intervention or negotiation by union reps, may provide a better outcome.

Emma Hawksworth is a partner in the employment law team of Russell Jones and Walker solicitors.
 

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