No employer wants to be on the end of an Employment Tribunal claim but with the abolition of fees back in 2017 which has led to spiralling claim levels, the harsh reality is that your business is now significantly more likely to have to deal with one.
Having to make the choice between settling a potential claim or fighting it out can be a difficult call in which there is only one path left if the employer and employee cannot agree. Defending a claim brought in the Employment Tribunal can be both costly and time consuming and getting it right first time is critical to achieving a favourable outcome.
Settling a claim might feel like you’re giving in, that you have failed. However, there are some benefits. Firstly, it allows the employer to control the cost of the dispute and as such to budget accordingly. It also provides certainty for the future as once the agreement has been signed the relevant claim/s cannot be heard by the Tribunal and the matter is resolved once and for all. The employer can then focus on running their business.
However, employers must consider the message it sends to existing employees if word gets around (which it invariably does!) and you’re seen as a soft touch. An employer that simply waves the white flag at the first hint of an employment dispute can probably expect to receive more claims than you would if you successfully fight your corner. It can also lead to paying out more than is warranted!
If you do decide to fight your corner, you should firstly consider the following:
How likely are you to be able to successfully defend the claim?
How much compensation will you be required to pay if you lose?
How much is defending the claim likely to cost in terms of legal fees?
How much management time will you be required to commit to defending the claim?
How much scope is there for reputational risk by continuing with your defence?
Recent MoJ stats indicate claims are taking on average just under a year to be heard. The journey can be quite costly, directly in legal expenses and indirectly in terms of management time and resources. It can be a great source of stress for all parties involved, not just for a small business owner or manager who has been named as a Respondent, but for those giving evidence on behalf of larger organisations too. Waiting this length of time could also cause problems in terms of witnesses forgetting relevant facts or moving on elsewhere.
So why should you defend a claim raised against your organisation? The obvious answer is probably because it can be worth doing so, you genuinely believe your position is worth defending and you have sought and received sound legal advice on the matter. A good representative can make a world of difference. They will outline the pros and cons of going the whole process, provide worst-case scenario and the likelihood of this happening. They will also outline the likely costs associated with defending the claim and will keep you updated every step of the way.
EML offer a comprehensive employment tribunal representation service through which we can handle any claims you do receive. Our highly experienced and tenacious advocates have defended thousands of claims over the years with an impressive track record of securing the most favourable outcome for our clients. We are more than happy to offer a free, no obligation review of your case. Get in touch on 01942 727200 or email enquiries@employeemanagement.co.uk to find out how we can help.