Employer Tribunal Nightmares

In the last year, there has been an increase of more than 50% in tribunal cases against employers with the economic downturn being blamed for the unprecedented rise.

Unfair dismissal is one of the most common type of claim but certainly the most expensive for an employer. Over 120,000 unfair dismissal claims were made in the last year, with average pay-outs of £8,000 up to a maximum of £76,700.

Leading Aberdeen-based employment law, HR and health & safety firm, Empire HR, is urging businesses to ensure there are certain procedures in place to avoid potential tribunal claims.

The firm says business leaders and managers should be taking a fresh look at their disciplinary policies and working practices to ensure that the risk of a claim is minimized.

Research has shown there is a increase in the willingness among employees to raise claims against their employer or former employer. Claims can now be made online making the process more accessible and with employees struggling to find another job they are much more likely to resort to litigation.

CEO of Empire HR, Steve Cook, said: “In the current economic climate, the effects of a successful claim could be disastrous for a business. It’s worth bearing in mind that it’s not just the actual compensation that costs the business money, as the time and resources spent on defending the claim can also severely affect the day-to-day running of a business.”

Mr Cook continued: “The rise in the number of dismissals over the past year, combined with the increasing awareness that employees have of their rights in the workplace have had a disastrous impact upon businesses.

“Factors such as the availability of legal information on the internet, the difficulty in finding new jobs, and the resulting poor financial situation of former employees means that people are more likely to file a claim than ever before.”

The good news, however, for employers is that statistics show employers with legal representation are more likely to be successful in defending any claims brought against them by former employees.

Here are ten employment tribunal stories that have been faced by some UK organisations:

Council facing potential pay out of £600m in equal pay case
Birmingham City Council is facing a hefty pay out after around 5,000 mainly female workers won their case for equal pay at a tribunal. Unions claim some female workers may be owed £30m in back-pay for bonuses paid only to their male counterparts. It is estimated the pay out could be up to £600m.

City lawyer awarded millions
A London lawyer who accused her bosses of destroying her career with a sexist bullying campaign accepted a secret pay-out of millions to drop her claim. She had been claiming a record £19million compensation deal over allegations that intimidation and sexual discrimination had left her 'mentally disabled'.

Hospital chief executive awarded £1.2m
The Royal Cornwall hospital had to pay-out £1.2 million to its former chief executive after he won a case claiming he was unfairly dismissed as a ‘whistle blower’.

Gay manager awarded £118,000 after only eight days of employment
A gay media sales manager was sacked after just eight days with a company because he was apparently not ‘psychologically balanced’. A tribunal heard the Glasgow man had been harassed and on one occasion been told he looked like a ‘cream puff’. He was awarded the compensation for discrimination on the grounds of his sexual orientation.

Company director awarded £68,000 for wrongful dismissal
A security company director was sacked under the grounds of the business’s financial difficulties. The director was apparently told by bosses he had to go due to lack of business, but when he was unable to find a new job the case was ruled as unfair dismissal and breach of contract, forcing the company to award him £68,000.

Teacher awarded £63,000 after unfair dismissal
A teacher in Blackpool won his case and was awarded £63,000 for unfair dismissal after imposing discipline on a disruptive pupil. The disciplined pupil claimed that she was unfairly treated which cost the science master his job leading to the unfair dismissal case.

£45,000 pay-out for cafe worker after being refused maternity pay
A cafe worker from Northern Ireland was awarded £45,000 for unfair dismissal. The woman
was working as a full time manager in the café for around 40–45 hours per week, however, the
owner had only been putting her down in the books for working 15 hours a week. When the
worker fell pregnant, the owner then claimed she didn’t qualify for maternity pay, prompting
the employee to raise a claim.

Accountant awarded almost £40,000 after unfair dismissal
An accountant from Perth was awarded £40,000 after being fired from his job accused of spending a “ridiculous amount of time” on the internet during working hours. It was later found that the management of the company had no idea how to interpret the internet usage reports and therefore the dismissal was treated as unfair.

Barmaid awarded more than £14,000 after text sacking
A Dundee barmaid who was sacked by text message by her boss was awarded more than
£14,000 at an employment tribunal for unfair dismissal. The barmaid, who had slept in for her
shift during the festive period, had previously worked 11 hours the day before her dismissal.
The barmaid was awarded a further £1,296 for breach of contract after being left alone in the
bar for more than two hours by her employee.

Wheelchair worker awarded £6,000 after being nicknamed by boss
A worker in a wheelchair who was nicknamed ‘Ironside’ after the disabled 1970s TV detective won a £6,000 payout for his ‘violated dignity’. Ironically, the ill-advised quip was made by a manager at a firm that helps people with disabilities return to work. The claimant took the company to a tribunal after finding out that he was being referred to as ‘Ironside’ behind his back.

Empire HR Ltd can assist businesses on all aspects of disciplinary action, from drafting the
disciplinary procedure to representation at tribunal.

For further information, please contact Steve Cook on 01224 701383 or email
s.cook@empirehr.com



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