Tribunal claims can devastate your business

Facing an Employment Tribunal can be costly and time consuming, and the effects on a small business can be devastating. In this post, I will explore some of the most expensive tribunal awards of 2014.

Employment Tribunal

Photograph courtesy of morebyless via Flickr

Since setting up Remote HR Solutions, I have found that most small business owners simply don’t have the time or knowledge to ensure they are compliant with employment law. But, when it comes to it, it pays to defend your business against future problems.

While the introduction of fees saw the number of employment tribunals drop by 70-80%, tribunal cases still occur and the amount of the award can cost the employer greatly.

Last year, a disabled support worker with bipolar disorder was awarded £101,183 from Knowsley Metropolitan Borough Council following the way disciplinary allegations regarding an altercation with a member of the public were handled.

Another employment tribunal saw and employee of the Royal Bank of Scotland (RBS) win £126,348. The employee was alleged to have inappropriately accessed a number of accounts while working at the bank. RBS were forced to pay out, as it was ruled that the disciplining of the RBS employee should have been delayed due to their depression.

Finally, Purple Parking Ltd got into trouble after it was found that they were dismissing drivers over 67 years of age, claiming that their insurance company would not insure them. As part of this age discrimination case, Purple Parking Ltd were ordered to pay more than £700,000 to 20 of their drivers.

As you can see from these examples, the arrival of an Employment Tribunal claim form can have a major impact on the day-to-day running of your business. But there are measures that I can help put into place to aid with damage limitation.

Police forces, local authorities, hospitals and banks are just some of the organisations that were forced to pay large settlements last year. These huge expenses may have been avoided had procedures been followed correctly.

I appreciate that Employment Law can be baffling so, if you’re worried about whether your documents meet the legal requirements or are experiencing issues with your employees/employer and need some advice, get in touch and I will do all I can to help. Remember that I offer a free initial consultation.


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