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Many businesses give little thought to the possibility of having to face a tribunal claim or the costs they could be facing.
One of the first things that a tribunal will look at is whether you have in place formal contracts, HR policies and systems and if they are up-to-date.
As an employer you have a legal responsibility to make sure you understand the law, and that all your systems and documentation adheres to current legal requirements. Ignorance is no defence in tribunal, and not having the correct up to date process & documentation could end up being very expensive.
The only way to really know if you are adhering to current employment legislation and HR / ACAS best practice is to undertake or have undertaken a full HR Audit on your HR systems, contracts, documents and policies as the law is constantly changing, and needs to be kept up to date. Many business consultants may charge for this service.
KeyHR offers a completely FREE HR audit to help business make sure they stay on the right side of the law.
You will get a comprehensive in depth HR report of how legally compliant your business currently is, and what needs to be put in place to help keep your business on the right side of the law.
Our FREE HR audit can be undertaken over the phone, via zoom or onsite. Book your FREE HR audit here.
An employee can bring a tribunal claim for any number of reasons including:
An employee has to be employed for 2 years (actually 23 months & 3 weeks) to bring a claim for unfair dismissal unless the dismissal is deemed to be automatically unfair.
There is no qualifying employment term / length where the termination can be deemed to be automatically unfair.
• | Health & Safety | • | For performing functions as an occupational pensions trustee |
---|---|---|---|
• | Protected Characteristic | • | Pension auto enrolment |
• | Whistle blowing or making a protected disclosure | • | Following an application for flexible working |
• | Pay & Working Hours including: | • | Enforcing rights in relation to working tax credit |
Unlawful deduction of wages | • | Exercising rights as an agency worker | |
Annual leave | • | Any reasons relating to pregnancy or maternity | |
National minimum wage | • | Taking or trying to take leave for family reasons or a family emergency including: | |
Working time regulations | Time off for dependants | ||
• | Jury service | Paternity leave | |
• | Joining or refusing to join a trade union | Adoption leave | |
• | Being a trade union representative | Shared parental leave | |
• | Being an employee representative | • | Taking or trying to take any statutory right |
• | Taking part in formal protected tribunal action | • | Redundancy |
Redundancy payment | 6 months from date of termination |
Contractual Claims | 3 months from date of termination |
Equal pay | 6 months from date of termination |
Holiday Pay | 3 months from date of termination |
Unlawful deduction of wages | 3 months from date of termination |
As an employer you have the right to request that the tribunal rejects / “ strikes out” the case for being out of time.
Be mindful this is not always upheld by the courts so it should not be relied on as means of defending a claim.
How long is a piece of string and how deep are your pockets on average an employment solicitor could cost you in the region of £200 + per hour and if you have hearing that last 2 or 3 days it becomes very expensive.
Rates from 6 April 2022 | |
---|---|
Unfair Dismissal — Basic Award | £17,130 |
Unfair Dismissal — Compensatory Award | Maximum £93,878 or 52 weeks’ pay (whichever is lower) (No maximum re: whistleblowing or H&S complaint) |
Unfair Dismissal — Additional Award | Maximum £14,846–£29,692 |
Discrimination | Unlimited |
Breach of Contract | Amount equal to loss but maximum £25,000 |
Failure to comply with reinstatement or re-engagement order | £14,846 - £29,692 (26-52 weeks' pay maximum) |
Trade union exclusion | £10,628 |
Failure to give right to be accompanied | £1,142 (two weeks' pay capped at the statutory amount) |
Lack of consultation redundancies’ / TUPE | 90 days basic pay |
Failure to give written statement of particulars (contract of employment) | £1,142 or £2,284 (two or four weeks' pay capped at the statutory amount) |
Maximum Award | Average Award | |
---|---|---|
Unfair Dismissal | £118,842 | £10,812 |
Race Discrimination | £30,330 | £9,801 |
Sex Discrimination | £73,619 | £17,420 |
Disability Discrimination | £265,719 | £27,043 |
Religion/belief Discrimination | £0 | £0 |
Age Discrimination | £243,636 | £38,794 |
Sexual Orientation Discrimination | £96,645 | £27,936 |
Unfortunately it is not as simple as that.
Even if you have all the correct HR systems and documents in place, the tribunal will look at whether all your employees have been made aware of the companies HR systems and operating practices.
If you have not made all your employees aware of the company systems / operating practices and have formal documented evidence of this, a tribunal will still be likely to find against you in court.
Finally the tribunal will look to see if you have followed your own HR systems and processes as well as the fair correct legal process. Failure to follow your own systems will again result in you losing at tribunal.
Even if you:
A simple technical error could result in you facing an expensive tribunal award.
The law and its interpretation is constantly changing, and it is very easy to say or do the wrong thing that then results in you losing a tribunal claim on a simple technicality.
e.g.
In the case of Kingsway v Tonks - Mr Tonks took £20 out of the cash till to buy some cigarettes. He was told by the manager he could not take the companies money. Mr Tonks took the money anyway saying he was borrowing it.
Mr Tonks was subsequently dismissed for theft. At tribunal, Kingsway Scotland lost the case, a they dismissed Mr Tonks for theft and Mr Tonks had stated he was borrowing the money when he took it. Therefore a dismissal for theft was deemed unfair.
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