Increase in compensation awards
This week has seen the Employment Tribunal Service publish their annual statistics for 2009/10 which show that the number of claims has gone up again this year so have the amounts awarded as compensation as employees resist moving away from a claims culture.
We have taken this opportunity to speak with Robert Grinham, Employment Law Specialist at mhl support who helps us to dissect these latest statistics.
Robert explained “the most notable statistic is one which shows the total number of claims accepted has increased from last year to a staggering 236,100 claims; more than a 56% increase on the previous year.”
In addition, Robert explained also that “we have seen average compensation amounts awarded increase alongside the number of claims. In particular, we have seen the average unfair dismissal award increase 15% to £9,120, with the maximum award in this area reaching an astonishing £234,549. In addition, we have also seen average awards in the area of disability discrimination increase to £52,087 with one case reaching figures as high as £729,347.”
When asked how many of these cases will have proceeded to a hearing, Robert explained that “most get settled either through ACAS or through individually negotiated settlements, with this year seeing 31% of claims settled through ACAS and 32% of claims withdrawn, a lot of which are likely to have been settled outside of ACAS. However, this year has seen 26% of claims proceed to a hearing with nearly 77% of these being successful or being resolved by a default judgment.”
The prospects of employers ‘winning’ at tribunal are therefore bleak and asked for one key success strategy for anyone facing an Employment Tribunal claim, Robert stressed that that the best tactic is knowing which battles are for fighting and which are for conceding. Robert explained that “Knowing your prospects of success at the Employment Tribunal is key to knowing whether it is beneficial to settle or not and what to settle for.”
As the statistics show, times are getting more and more litigious. With a mere 0.13% of respondents receiving their legal costs reimbursed, it is even more important this year for employers to ensure that they are adequately protected for the likelihood that they might get sued this year. mhl support has a number of product offerings to help cover against the risks of Employment Tribunal claims, along with services offering legal represented at Employment Tribunal, and even products which will help to cover any awards made at a hearing. For those employers who are interesting in receiving more information about the services mhl support provide, please call Katy Vaughan today on 08453 100 600.
For those keen readers who wish to obtain a copy of the entire annual report, a copy is available online here.
