Understanding Employment Tribunals – A Step-by-Step Guide
Written by Andrew Johnson, Founder and CEO HRGuide - Thu 10th Oct 2024
Introduction
In the United Kingdom, Employment Tribunals play a crucial role in resolving disputes between employers and employees relating to employment rights, discrimination, unfair dismissal, and other workplace issues. Employment Tribunal hearings provide a formal legal process for parties to present their cases and seek resolution. The latest figures published by the Ministry of Justice between January and March 2023 show that just over 23,000 claims were made. These claims varied but included:
- unauthorised deduction of wages (up 57%)
- redundancy pay (up 55%).
- breach of contract claims (up 49%).
The number of claims continues to rise as the system fails to keep up with the backlog, often meaning cases take months to be heard.
1. Purpose of Employment Tribunals
Employment Tribunals are independent judicial bodies tasked with adjudicating disputes between employers and employees. Their primary purpose is to provide a fair and impartial forum for resolving employment-related disputes outside of the traditional court system.
2. Types of Cases Heard
Employment Tribunals hear a wide range of cases, including claims of unfair dismissal, discrimination (on grounds of age, sex, race, disability, etc.), breach of contract, redundancy pay disputes, whistleblowing, and unlawful deduction of wages, among others. For employees to make a claim for unfair dismissal they need to have been employed for a minimum of two years, although this may be about to change under the Labour Government. There is no qualifying period for employees to make a claim for discrimination.
3. Mediation through ACAS
Often, once a case is registered with a tribunal then, ACAS will offer to mediate between the employer and employee to see if some form of settlement or resolution can be made before the case has to be heard at a tribunal. This is often worth pursuing because it can save time and money for the employer.
4. Preparing for the Hearing
Prior to the hearing, both parties (the claimant and the respondent) are required to exchange relevant documents and evidence to support their case. This may include witness statements, employment contracts, correspondence, and any other relevant documentation. Tribunals are most interested in ensuring an employer has followed a robust and fair process when managing an employee dispute or dismissal. It is critical there are the relevant policies, letters, documents and you have followed the necessary procedures when managing an employee. If you haven’t you will invariably lose your case.
5. Representation
Parties may choose to represent themselves or be represented by a legal representative, such as a solicitor or barrister. Representation is not mandatory, but it can be beneficial, particularly in complex cases or where legal expertise is required.
6. Conducting the Hearing
Employment Tribunal hearings are typically held in public, although certain sensitive cases may be heard in private. During the hearing, both parties can present their case, call witnesses, and cross-examine the opposing party’s witnesses. The Tribunal panel, consisting of an Employment Judge and lay members, will carefully consider all evidence and testimony presented before reaching a decision.
7. Decisions and Remedies
Following the hearing, the Tribunal will issue a written judgment outlining its findings and conclusions. If the Tribunal finds in favour of the claimant, it may order remedies such as compensation, reinstatement, or re-engagement. The Tribunal may also make recommendations to address systemic issues within the workplace.
8. Fees
In most cases, there are no fees associated with bringing a claim to an Employment Tribunal. However, parties may be liable for costs if their claim is deemed to be vexatious, frivolous, or otherwise unreasonable. Additionally, the losing party may be ordered to pay the other party’s legal costs in certain circumstances.
9. Confidentiality and Privacy
Employment Tribunal hearings are generally open to the public, although sensitive information may be heard in private sessions. The Tribunal has the discretion to restrict reporting of proceedings in cases involving confidential or sensitive information.
10. Costs
For a straightforward case a solicitor or employment lawyer will cost on average between £10,000 to £15,000s to represent you. If you lose a case for unfair dismissal the average employee award in 2020/21 was £13541 and for sex discrimination it was £24630. It can cost an employer a lot of money if they lose a tribunal claim. Also, because these cases are in the public domain, this can attract adverse publicity to the business.
Get expert advice on Employment Tribunals from HRGuide
If you invest in developing robust HR policies and procedures you can go some way to preventing potential disputes and claims. Also, maintaining accurate and up-to-date employee records, contracts, and documentation is essential as well as having effective internal mediation or grievance procedures, to resolve conflicts before they escalate to an employment tribunal.
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