Tribunal reforms could put undue pressure on companies
A new survey has shown that increasing numbers of companies
would be forced to settle employment tribunal cases brought against
them if proposed reforms to the tribunal system are given the go
ahead.
Some of the reforms - which would bring in penalties for
employers found to have breached employment rights - would result
in six out ten of firms being compelled to settle the cases, due to
the costs incurred, rather than take the case to a full
hearing.
Employment law authority, Owen Warnock, said many companies felt
the changes would put undue pressure on them and force them to
accept positions with which they were unhappy.
"The government is keen to ensure that more employment cases are
settled without a tribunal hearing," he said. "However, our study
has indicated that many employers consider that the proposal to
fine those found to have breached employment rights could
improperly increase the pressure on them to settle claims rather
than defend themselves."
Of the 600 companies surveyed by Mr Warnock, nine in ten said
they backed a 'formal offer' system, where claimants or defendants
who refused a 'reasonable settlement' could have any subsequent
compensation awarded by a tribunal lowered or increased.