Earlier this year we reported on the rise in tribunal claims following the abolishment of tribunal fees in July 2017.
The Ministry of Justice has reported that during the period April – June 2018 the number of single claims has increased by 165% compared to the same quarter last year.
Some other key statistics in the report include:
- Number of single claims outstanding rose by 130% compared with the same quarter last year.
- There have been 12,400 fee refund payments made since the fee refund scheme was introduced, totalling just over £10m.
- Disability discrimination cases had the largest average award (£30,700). Religious discrimination claims had the lowest average award (£5,100). The average award for unfair dismissal awards was £15,007.
The significant increase in claims from 60% to 90% and now 165% means the risk to businesses is far greater than it has been in the last few years.
How you can protect your business
Claims can not only cause reputational damage for a business, but for some SMEs it could mean serious strain on their bottom line.
You need to ensure that you have the necessary policies and procedures in place to ensure that your business is adequately protected. We strongly recommend that you seek best practice employment advice when you have any type of people management issues, especially if this is likely to result in a dismissal of any kind.
Having legal expenses insurance is invaluable when the unexpected happens. Some businesses may have never needed to call on that insurance to pay out compensation to an unhappy employee, but this doesn’t mean it will never happen.
We have partnered with Abbey Legal insurance to provide our clients with the option of that extra protection should the unexpected happen. Founded in 1992, Abbey Legal insurance has over 25 years of experience in providing SMEs with legal expenses insurance. So, should you be involved in a tribunal case or need to cover the legal costs of defending a prosecution by the HSE in the event of an accident, you’ll be covered.
Please ensure that you take expert advice on employment matters. For more information please contact our Alcumus HR Consultancy team. For further peace of mind, why not request a quotation for legal expenses insurance by contacting us at [email protected].