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Tribunal trends – claims at highest levels in ten years

Posted on: November 10th, 2020 by Ginny Hallam

Employment tribunal claims in April to June 2020 have reached their highest level in ten years. Halborns’ tribunal advocate, George Miller, provides his take on the rise in tribunal claims.

“The coronavirus pandemic has resulted in changes to the litigation climate in the following ways:

  1. High unemployment and little disposable income means ex-employees may be more likely to use tribunal claims to secure compensation or a cash settlement. Tribunals aren’t a route to quick cash – hearings are now being listed in 2022 meaning individuals using the tribunal service to secure immediate gain will be disappointed;
  2. Tribunal compensation is largely based on how quickly an individual has found employment elsewhere (‘mitigated their losses’). A tougher job market makes it harder for employees to mitigate their losses meaning the value of claims at employment tribunal is rising along with exposure to significant tribunal awards;
  3. We’re seeing an increase in lower value claims for notice pay or unpaid wages. Time invested and legal fees can often outweigh the value of these claims.”

Expert advice at the start of any people challenge or process can help to minimise issues arising further down the line and reduce potential litigation risk. Find out more about securing unlimited employment law advice through our Intelligent Employment service.

 

This update is accurate on the date it was sent (10 November 2020), but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.