16 November 2006
The recently published 2005/06 Annual Report of the Employment Tribunal Service makes disappointing reading for employers. Applications to Employment Tribunals (ET’s) increased during the period by a third from the previous year. This increase follows the previous year’s encouraging statistics, which saw a falling number of applications to ET’s and possibly marks the return of a worrying upward trend. This is despite the Government’s introduction of statutory dispute resolution procedures in October 2004, which had the stated aim of reducing ET claims.
The cost and time for an employer in defending even a weak claim can be high. However, for most employers the ideal solution to this growing problem frequently lies close to home! Simple steps, such as ensuring that employment contracts and the company handbook are up to date, effective and properly implemented are essential. Managers and staff must be properly trained in how to operate policies fairly and consistently. Create an audit trail with detailed notes of meetings and other events taken at the time. Implement amongst other HR tools; effective appraisal systems, return to work meetings and meaningful exit interviews. Finally, the importance of recruitment and selection in an organisation should never be underestimated.
Whilst these steps will not eradicate the ET claim, experience suggests that the risk of a claim is significantly reduced. Employers’ should also note that effective practices and procedures are a defence as well as being a deterrent to a claim being brought in the first place.
For more information please contact Andrew Masters, Partner & Head of Employment.
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