Tribunal Costs - More than just fines
The main concern companies have when taken to an employment tribunal is how much it might cost them if they lose. But they should also consider the demands that the tribunal could impose on them to change their business processes and policies, employment law specialist Bibby Consulting & Support has warned.
The warning comes after the case of a school that was deemed to have discriminated against an employee because of her age. In addition to awarding the claimant £48,000 in compensation, the tribunal exercised its powers to make recommendations in such cases and told the school that it had to take specified action, which included having its equality policies and procedures reviewed and possibly overhauled and implement an equality and diversity training programme to include everyone in the organisation. When the school appealed, saying that the recommendations were "burdensome and impractical", this was rejected.
Says Bibby CAS Managing Director Michael Slade: "Many companies simply do not realise that employment tribunals have the power to impose such specific recommendations on them that can have a detrimental and costly effect on their business.”
He adds: "Our recommendation would always be that companies engage HR professionals and have equality and diversity policies in place from day one, but for those who don't such pronouncements can come as a severe shock. Whilst we would not disagree with the recommendations made, putting them all into place and within a short period of time can indeed have a significant and detrimental effect on an organisation’s existing resources.
"The answer, of course, is for companies and other organisations to review their own policies and procedures now and ensure that they adhere to best practice and comply with all the very latest employment law, including preparations for forthcoming changes in October 2011."
