Experts call for review as downward trend in claims continues
The number of single claims made to employment tribunals has fallen 70 per cent in a year, according to the latest figures from the Ministry of Justice (MoJ).
Between April and June 2014, 3,792 claims were recorded, 70 per cent fewer than those logged in the same period in 2013.
The number of multiple claims during this year’s three-month period reached 11,099, relating to 1,004 multiple claim cases in 2014.
However the MoJ warned that the trend in multiple claims is much more volatile due to large numbers of claims against a single employer, such as the airline industry cases in recent years.
Experts are attributing the continued fall in claims to the number of reforms to the tribunal system, including the introduction of fees in July 2013.
Kevin Jones, head of employment and HR at law firm Clarke Willmott, said he wasn’t surprised to see the reduction in figures, as one of the main drivers behind the recent system regulations was to drive down the number of claims being brought against employers.
“Many of our employer clients are reporting a decline in claims against them,” he said.
“Without doubt the need to pay an initial fee to commence a claim coupled by a further hearing fee has put off many potential claimants.”
Despite the majority of employees being open to settling disputes via the Acas Early Conciliation scheme, Richard Fox, head of employment law at Kingsley Napley LLP, said the current system needed further amendments to make the system fair to both employers and employees.
“We really have reached the situation where many voices are coming together to say ‘something must be done’,” he said.
“There is now a serious question of access to justice on account of the level at which fees were introduced. It can be no coincidence that Chuka Umunna took the opportunity at this week's TUC Conference to propose a new system for dealing with this issue.
“It is clear some changes are required. Interestingly, he did not seem to restrict himself to a simple “means test” as some have reported.”
In April this year, the coalition government said it would consider reducing the fees, in a review of the system, but Fox said it was “disappointing” that nothing had yet come of these promises.
“Given how well it had been doing in achieving a real balance between on the one hand allowing business to get on and prosper for everyone’s benefit, and on the other, allowing those with legitimate claims to have access to justice (prior to the introduction of fees), that is very disappointing,” he said.