Sharp increase in unsubstantiated employment claims
Employees are becoming more litigious judging from a
recent survey undertaken by HR professionals from major UK organisations in and
around the City
At a recent breakfast seminar held by international
law firm SJ Berwin for HR professionals from large companies spanning different
sectors of the UK economy, over two thirds (67 percent) that completed a
questionnaire considered there were more grievances and tribunal claims being brought
by employees. In addition, 59 percent noted an increase in unsubstantiated
claims such as discrimination and whistleblowing.
Unlike unfair dismissal
claims, employees do not need a year’s qualifying service to bring such claims.
This finding is supported by the recently published Employment Tribunal
statistics for 2008/09, which highlighted that, over the last year, there have
been significant increases in claims for unfair dismissal, breach of contract
and redundancy pay. Hilary O’Connor, partner in the Employment group at SJ
Berwin, said: “The rise in unsubstantiated claims should put employers on
their guard; they need to have good policies and timely and effective
processes in place.”
The survey took place at a
seminar held on 29 September 2009 at the offices of international law firm SJ
Berwin. With over 100 delegates in the audience, from major UK
companies across a wide spectrum of industries, 81 delegates
completed and returned a survey giving an insight into the effect of the recession
on their organisations and strategies they are adopting to beat the recession.
The overwhelming majority of
those surveyed have introduced cost-cutting measures (93 percent). Over three
quarters said their organisation had carried on some form of consultation with
their employees prior to introducing measures. The relatively low numbers of
organisations that did not speak to their employees about changes is more to do
with the type of changes introduced, such as the introduction of sabbatical and
part-time working policies.
Hilary O’Connor added:
“Employers should not be tempted to cut corners. An employer who does not
consult prior to bringing in changes does so at its own peril!” The vast
majority of employees accepted proposed changes/measures either straight away
or following consultation (92 percent). In particular, employees appear to be
receptive to cost-cutting measures such as the removal of benefits, freezing
and/or reducing salaries, where this will help reduce redundancies and preserve
jobs
17 November 2009