Employment tribunal reform

Employees taking cases to an employment tribunal should have to pay a fee in order to discourage spurious claims, according to the British Chambers of Commerce (BCC).

The BCC has called for reform of the Employment Tribunal system and released figures that it says highlight the costs for business under the current system.

The BCC found that the average cost for an employer to defend themselves at Tribunal is £8,500. However, with the average settlement calculated at £5,400, the BCC says it is often cheaper for employers to settle, even if faced with a spurious claim.

This proposal is expected to be considered by the Government as part of an on-going review on a wide range of employment laws, which includes the proposal for a two year period of employment before an unfair dismissal claim can be made (currently 1 year).

See Hardwick HR Blog for comment on this issue.