Further fallout from the fall of employment tribunal costs?
In an ideal world, businesses don’t expect legal action to be taken against them by employees, customers or suppliers. For the more prudent, they manage this risk and ensure they have the processes and systems in place to make sure such action is minimised and unlikely.
Be aware that, as a business, you could face a legal dispute which can sideswipe you without any warning. As a business manager or owner, it’s important to keep abreast of risks which may arise and trigger such a legal dispute. Take an employment tribunal as one example. Recently, a House of Commons Justice Committee report suggested employment tribunal costs could fall further and the suggestion is that it may prompt more claims by employees.
It was in 2013 when tribunal costs were first introduced in an effort to help reduce the number of false claims brought by disgruntled employees. But since the introduction of fees, the number of employee claims has fallen by a staggering 70 per cent, suggesting that the pendulum has swung too far the other way. As a result, a proposed cut in tribunal fees could address the balance but also open the door once more to those that may see a tribunal as a first choice rather than last resort. Businesses need to be aware for this potential result and prepare for it. Whatever the risks, businesses should ensure they have the correct processes and systems in place to minimise this type of claim against them from occurring in the first instance.
Russell Scanlan works in partnership with legal cost insurer Abbey Legal who is one such provider. If you have an issue relating to legal costs please get in touch with us at Russell Scanlan and we will be happy to discuss your needs in greater detail.
