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Do you understanding Tribunals, costs, awards & how to prevent them?

Susan Silwood • Oct 03, 2022
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How do i prevent / limit tribunal action and awards ?


Many businesses give little thought to the possibility of having to face a tribunal claim or the costs they could be facing.


Do you have formal contracts, HR policies and systems in place ?


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.


What if I didn’t know the law and how to do things correctly ?


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.


How do I know if I my contracts, HR policies and systems are currently legally compliant ?


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.


How can I find out if my business is legally compliant for free?


FREE HR Audit


KeyHR offers a completely FREE HR audit to help business make sure they stay on the right side of the law.

 

What do I get with a free HR Audit ?


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.


What grounds can a tribunal claim be brought?


An employee can bring a tribunal claim for any number of reasons including:


  • Unfair dismissal i.e. where the correct legal process was not followed or the employee was treated in an unfair manner
  • Discrimination based on disability, race, religious belief, age, gender / gender reassignment, sexual orientation, marriage / civil partnership, political opinion
  • Breach of contract i.e. making changes to a role, working environment or terms of employment without notice / consultation
  • Redundancy pay
  • Unlawful /unauthorised deduction of wages
  • Working hours
  • Equal pay
  • Written terms / contract of employment
  • Lack of consultation, redundancies and or business transfer ( TUPE)
  • Health & Safety
  • Trade union member or none membership
  • Failure to adhere to / provide a statutory right


What are the length of service qualifying periods to be able to make a tribunal claims ?


Unfair Dismissal Claim


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.


Automatic Unfair Dismissal Claim


There is no qualifying employment term / length where the termination can be deemed to be automatically unfair.


What is an automatically unfair dismissal ?


There are in excess of 50 reasons why an employee may claim automatic unfair dismissal mainly designed to protect an employee statutory rights e.g

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


Time limits for bringing a tribunal claim?

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

What happens if an employee does not bring a tribunal claim within the required time scales ?


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 much does it cost to defend a tribunal 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.

 

If I lose at tribunal how much will it cost ?

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 and average tribunal awards ?

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

Am I safe from tribunal action if have all the correct HR documentation in place ?


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:

  • Do have in place the correct up to date HR systems and documentation
  • Have made all your employees aware of them
  • Have followed your policies and systems


A simple technical error could result in you facing an expensive tribunal award.

How can a simple mistake result in you losing in tribunal ?


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. 

For additional information, employment law advice or HR support please contact us on

01905 347536

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