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Understanding the New "Fire and Re-hire" Code of Practice in the UK | Consensus HR in Herts & Beds

Employment Tribunal: The Potential Cost to Your Business | Consensus HR in Herts, Beds

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Employment Tribunal: The Potential Cost to Your Business

Currently, an employee does not have to pay a fee to make a claim to an employment tribunal. Costs may be incurred to pay witness expenses and, if the claim is lost, the costs of the people or organisation brought to the tribunal.  This can include the fees of legal and/or HR support.

Around 95% of cases are settled before a full hearing at an Employment Tribunal. However, when a case does go to court, the amount of the award can cost the employer dearly. This is why the Consensus HR team always emphasises the importance of being proactive rather than reactive. We ensure our clients are following legal requirements and best practice in the most effective way possible.

The upper limit of compensation awarded by employment tribunals increased in April 2024. The potential cost to employers has now increased to:

  • Cap on a Statutory Week’s Pay: £700

(Used for calculating various awards, including statutory redundancy pay and unfair dismissal basic awards.)

  • Cap on Statutory Redundancy Pay: £21,000
  • Maximum Basic Award for Unfair Dismissal: £21,000
  • Maximum Compensatory Award for Unfair Dismissal: £115,115

(Or a year’s gross pay, whichever is lower.)

  • Additional Award for Unfair Dismissal: £18,200 to £36,400

(Applies when an employer does not comply with a re-instatement or re-engagement order.)

  • Statutory Guarantee Pay: £38 per day

A wide variety of issues are taken to employment tribunals. The most unusual cases and their outcomes during 2023 were:

  1. Being nicknamed ‘Christine Lagarde’ was not discrimination.
  2. A women’s toilet located next to men’s urinals was discriminatory.
  3. Singing a lewd song to a junior colleague saw a law firm partner fined £45,000.
  4. English nationalism is ‘not a philosophical belief’ following complaints about racist remarks.
  5. Singing Victoria Wood’s ‘Let’s do it’ song amounted to sexual harassment.
  6. An employee who advertised sex work online was unfairly dismissed after flaws were revealed in the disciplinary process. 
  7. A ‘Grow up’ comment made to a colleague was not age discrimination.
  8. A train driver was unfairly dismissed after a tarantula prank.

The wide variety of claims, free claim submission and rise in compensation limits increase the importance of implementing best practice HR practices. Many small businesses simply can’t afford to risk being taken to an Employment Tribunal. 

Employment Tribunal: The Potential Cost to Your Business | Consensus HR in Herts, Beds
Employment Tribunal: The Potential Cost to Your Business | Consensus HR in Herts, Beds
Employment Tribunal: The Potential Cost to Your Business | Consensus HR in Herts, Beds

At Consensus HR, we work with our clients to ensure that the correct policies, procedures and contracts are put into place and then acted upon. This ensures that the company operates well,

  • improves on bottom line profit,
  • reduces operating costs, and
  • is an employer of choice.

It involves rewarding your team adequately for the work they complete and with relevant management as needed. This isn’t an easy or quick task. One of our favourite sayings at Consensus HR is: “Rome was not built in a day”. Our HR services enable us to support our clients on a continual basis to continually improve whilst having a return on investment.

Avoid the cost and stress of an employment tribunal! Talk to the team at Consensus HR. Let’s explore your HR practices and avoid any people-based problems. Should you be involved with an employment tribunal, we can help you prepare for and navigate the process involved.

Employment Tribunal: The Potential Cost to Your Business | Consensus HR in Herts, Beds

To view more about our range of HR & Employment Law Services

At Consensus HR, we are proud to offer a wide range of HR & Employment Law services to help our clients with all areas of best practice and Employment Law which can be found by clicking on the button:
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Are you concerned about keeping your business up to date with Employment Law changes?

At Consensus HR, we ensure that our clients do not make assumptions when it comes to the performance / abilities of team members and that if identified, we seek the member of teams consent to write to a relevant medical professional to obtain support and advice and any reasonable adjustments needed to ensure what is possible is provided. If you manage a team / business and find it hard to keep on top of changing Employment Law and best practice and wish you could outsource it to a HR Charity for a small monthly investment, give us a call now for a non-obligatory conversation. Consensus HR | Your Outsourced Human Resources and Employment Law Department. | “Helping companies take the pain out of managing people whilst Preventing People Problems – 01438 576750.
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Understanding the New "Fire and Re-hire" Code of Practice in the UK | Consensus HR in Herts & Beds

Proposal to bring back fees in Employment Tribunals and the EAT | Consensus HR – Herts Beds:

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Proposal to bring back fees in Employment Tribunals and the EAT | Consensus HR – Herts Beds:

The Ministry of Justice (MoJ) has launched a consultation into the proposed reintroduction of modest fees in the Employment Tribunals (ET) and Employment Appeal Tribunal (EAT).

With full details available at https://consult.justice.gov.uk/digital-communications/introducing-fees-employment-tribunals-eat, it states that the aim is to contribute to the continuous improvement of the Courts and Tribunals Service and to reduce the cost to the taxpayer to fund these services.

The proposal is to introduce “modest fees” for claimants to bring a claim in the ET and appellants bringing an appeal in the EAT.

Parliamentary Under Secretary of State, Mike Freer, said: “The Ministry of Justice has carefully considered the 2017 Supreme Court ruling on the previous approach to fees in the Employment Tribunals and has endeavoured to ensure that the fees proposed in this consultation are proportionate and affordable, in line with the judgment.”

As with other court and tribunal jurisdictions, he went on, those who cannot afford to pay the proposed fees will be supported by the Government’s fee remission scheme, Help with Fees (HwF). 

In addition, modest fees may incentivise parties to settle their disputes early through ACAS without the need for claims to be brought to an Employment Tribunal, the MoJ argues.

The proposal is to introduce a £55 issue fee that is payable by the claimant on bringing a claim to the Employment Tribunal with the same fee charged in the EAT, payable per judgment, decision, direction or order of an ET being appealed.

The deadline for responding to this consultation is 25 March 2024.

 

HRInform – Jan-24

Our HR Comment: Proposal to bring back fees in Employment Tribunals and the EAT | Consensus HR – Herts Beds. 

Matthew Chilcott, FCIPD, ACEL, Owner of Consensus HR comments: “This is a very interesting article and the information / link provided by the Government shows some detailed information since the previous introduction of fees was trialled from July 2013 to July 2017 and characterised claims in two different ways:

‘Type A’ or ‘Type B’ claims different fees payable dependent on whether the claim was a Type A or Type B claim. Type A claims (which covered simple disputes such as unpaid holiday pay) attracted an issue fee of £160 and a hearing fee of £230, totalling £390 in fees. Type B claims (which covered more complex disputes such as discrimination) attracted an issue fee of £250 and a hearing fee of £950, totalling £1200 in fees. The EAT attracted a £400 issue fee and a £1200 hearing fee, totalling £1600 in fees.

A proposed fee of fee £55 is generally seen as affordable for claimants and appellants and we wait to see if this progresses with the current long waiting times.”

Proposal to bring back fees in Employment Tribunals and the EAT | Consensus HR – Herts Beds:

To view more about our range of HR & Employment Law Services

At Consensus HR, we are proud to offer a wide range of HR & Employment Law services to help our clients dot their ‘Is’ and Cross their ‘T’s’
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Possible Return of Employment Tribunal Fees

Do you run a business with a team and wish to concentrate on what you know best, your product and have somebody else look after the HR & Employment Law side ensuring you are working to best practice and the law whilst becoming an employer of choice? We are an Outsourced HR & Employment Law company who work with businesses that wish to provide the resources of an HR Department with unlimited telephone and emails provided for a monthly retained fee. Consensus HR | Your Outsourced HR & Employment Law Department – “Helping companies take the pain out of managing people whilst Preventing People Problems – 01438 576750”.
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Your Outsourced Human Resources (HR) Department.

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How to Handle Potential Misconduct | Consensus HR |Herts, Beds, Cambs

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Treating Potential Misconduct Appropriately

People problems can hit any size of business. Misconduct cases are more common than you may think. They can involve:

  • Theft
  • Sexual harassment
  • Abuse of power
  • Falsifying documentation
  • Health and safety breaches
  • Goods or property damage
  • Drug and/or alcohol use

A TUC survey found that 58% of women of all ages reported they had experienced being harassed, bullied or verbally abused while trying to do their job. In almost 40% of the most recent incidents to affect a victim, responsibility lay with a third party, such as a customer or client.

Very recently, high-profile cases involving potential employee misconduct have hit the headlines, involving media presenters who are household names.

‘It’s crucial to have robust disciplinary procedures in place. This ensures that, as a responsible and reasonable employer, you can deal with instances of alleged misconduct and inappropriate behaviour legally and fairly,’ says Matthew P Chilcott of Consensus HR.  

 

When you decide on a disciplinary you need to ensure that a thorough investigation has taken place. This considers the allegations and relevant punishment involved, applying the outcome to all employees involved.’

He adds: ‘From experience, I know this can be hard for some employers who do not have the staff numbers to manage the situation correctly. Businesses of all sizes must ensure that they seek the relevant support needed. Otherwise, they risk expensive tribunal claims and a negative reputation as an employer.’

Do you have robust, fair HR practices in place to deal with employee misconduct?

Treating Potential Misconduct Appropriately

Talk to the friendly experts at Consensus HR. Explore how your HR practices can be improved, protecting your business and your employees.

Contact us now

Misconduct issues can hit any business, of any size. Update from Consensus HR, expert outsourced HR services. Herts, Beds, Cambs Give us a call now if you wish to discuss.
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YOUR OUTSOURCED HUMAN RESOURCES DEPARTMENT.

For further information on any of the HR subjects we provide, please click the heading below:

Employment Tribunal: The Potential Cost to Your Business

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Understanding the New "Fire and Re-hire" Code of Practice in the UK | Consensus HR in Herts & Beds

Employment Tribunal Payments | Consensus HR | Outsourced HR Services

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Employment Tribunal: The Potential Cost to Your Business

Employment Tribunal: The Potential Cost to Your Business – Employment Tribunal Payments | Consensus HR | Outsourced HR Services

Since the introduction of fees, the employment tribunal has, thankfully, become a less common destination for business owners and HR professionals.

52% of all claims submitted, on average in the last 10 years, settle through Acas or are withdrawn, including cases which are settled privately. Of those that were pursued, only 8% of cases were successful at trial. This is over the same 10-year period, with the remainder of cases being either unsuccessful, struck out, dismissed at a preliminary hearing, or a default judgment granted.

However, when a case does come to court, the amount of the award can cost the employer dearly. This is why the Consensus HR team always emphasises the importance of being proactive rather than reactive. We ensure our clients are following the law and best practice in the easiest most effective way possible.

The latest annual statistics show that during 2021/22 the types of tribunals and average compensation awarded were:

Unfair dismissal

Number of claims awarded compensation 633

Average award £13,541

Race Discrimination jurisdictions

Number of claims awarded compensation 30

Average award £27,607

Sex Discrimination jurisdictions

Number of claims awarded compensation 45

Average award £24,630

Disability Discrimination jurisdictions

Number of claims awarded compensation 93

Average award £26,172

Religious Discrimination jurisdictions

Number of claims awarded compensation 10

Average award £19,709

Sexual Orientation Discrimination jurisdictions

Number of claims awarded compensation 6

Average award £32,680

Age Discrimination jurisdictions

Number of claims awarded compensation 11

Average award £18,623

 

At Consensus HR, we work with our clients to ensure that the correct policies, procedures and contracts are put into place and then acted upon. This ensures that the company operates well,

  • improves on bottom line profit,
  • reduces operating costs, and
  • is an employer of choice.

It involves rewarding your team adequately for the work they complete and with relevant management as needed. This isn’t an easy or quick task. One of our favourite sayings at Consensus HR is: “Rome was not built in a day”. Our HR services enable us to support our clients on a continual basis to continually improve whilst having a return on investment.

Employment Tribunal: The Potential Cost to Your Business

Avoid the cost and stress of an employment tribunal! Talk to the team at Consensus HR. Let’s explore your HR practices and avoid any people-based problems. Should you be involved with an employment tribunal, we can help you prepare for and navigate the process involved.

Contact us now

What could an Employment Tribunal cost your business? Avoid the stress and cost with Consensus HR. Professional outsourced HR services. Call us now.
Contact Us

YOUR OUTSOURCED HUMAN RESOURCES DEPARTMENT.

For further information on any of the HR subjects we provide, please click the heading below:

Employment Tribunal: The Potential Cost to Your Business

Copyright © Consensus HR All right reserved.

Designed by JCP Web Designs

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