Lawyers warn ’employment claims have become a costly burden for businesses’
Lawyers are urging businesses to stay ahead of employment law changes after a new report revealed employers are devoting more than a month of their time to deal with employment claims.
New research from law firm Birketts revealed that English and Welsh businesses have spent on average 4.8 weeks out of 24 months purely handling Employment Tribunal claims.
Leading the most common types of claims was unfair dismissal at 23.9 per cent, but disability discrimination was a close second with 22 per cent of all claims in this research.
The law firm noted that it is rare to encounter a straightforward ordinary unfair dismissal claim on its own, as it usually sits alongside other claims, such as whistleblowing, harassment or maternity related discrimination.
It was highlighted that the majority of the claims in the report were settled, with almost a quarter of respondents stating that the settlement was the day before the main hearing.
The firm urged employers to take an early view on whether early settlement is the most cost-effective or desirable outcome, to limit the time and expense on preparing for a full hearing.
Catherine Johnson, partner in Birketts’ employment team stated that “employment claims have become a costly burden for businesses”.
She warned that “with a backlog of employment claims in the courts and tribunals, and the introduction of new and strengthened workplace rights being a central element of the Government’s policy agenda, staying ahead of the rapidly changing employment law landscape has never been so important for businesses and their HR leaders.”
The government revealed its employment overhaul last October in its Autumn Budget.
“Failing to tackle the potential for employment claims early on is already proving costly to businesses and could get worse at a time when employers are already grappling with increased costs from the Autumn Budget,” she added.
Last August, City PM reported that the Employment Tribunal is already dealing with a backlog of cases from the pandemic, with one lawyer fearing the “situation may worsen when having to deal with a whole new set of laws.”