Age clearly does matter, as recent Employment Tribunal statistics show a 79% rise in claims

Figures published recently by HM Courts and Tribunals Service in its Annual Statistics for 2010/2011 have revealed a ‘dramatic’ rise in the number of age discrimination claims lodged at the Employment Tribunal.

The figures show that, in the year up to 31st March 2011, 6,800 age discrimination claims were filed, a rise of 31% on the previous year’s number. Since 2008/2009, the overall number of claims has risen by 79%.

These figures show a dramatic rise in the number of age discrimination claims in the past two years and emphasise the importance of employers becoming more age-aware.

Against a backdrop of a number of high-profile ageism cases, the ending of the default retirement age and rising levels of redundancy and unemployment, many more people believe that they are being discriminated against. With further job losses expected in the public sector and the lingering idea that older workers are a burden, we would not be surprised to see these figures continue to rise. Remember, age is a unique form of discrimination, as it can affect anyone and everyone as age is something we all have, with young people being equally prone to marginalisation in the workforce.

Even large organisations can run into problems, as illustrated by the recent radio comments of an Aberdeen City Councillor, who whilst addressing the issue of funding from the Scottish Government for Aberdeen City Council asserted “that this was a test for the Council’s Leader,[ 26 year old Callum McCaig] who had to show whether he was a man or still a boy.” It is often ill-advised and inappropriate comments, (no matter how well meant) that can lead to discrimination claims and contribute to these rising figures.

Organisations must have appropriate policies and training in place to deal with all aspects of discrimination, and to ensure that processes like redundancies, recruitment and pay are free from any discriminatory practices.

These recent Employment Tribunal statistics also show that despite a small fall in the total number of claims lodged in 2010/2011, the total number of claims was still up by 44% from 2008/2009.

In short, the Employment Tribunal still continues to be busy and organisations, no matter their size, need to have the best HR policies, procedures and practices in place to combat this trend.

Craig Bennison
Head of Litigation

If you've found this post interesting please share it with your online community using either the Twitter, Facebook or Share buttons below.

     

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



Tweet

Case Law: Employer liable for loss of earnings resulting from reference

The case of Bullimore v Pothecary Withan Weld Solicitors and another (UKEAT/0189/10) has highlighted the potential risks incurred by providing a bad reference.

Ms Bullimore placed a claim after discovering that her previous employer had provided a very poor reference to her new employer. The new employer withdrew the offer of employment after receiving the reference which informed them that Ms Bullimore had raised a sex discrimination claim against them, was inflexible and had a poor working relationship with the firm's partners.

The Employment Appeal Tribunal held that the previous employer was liable for Ms Bullimore's future loss of earnings.

This case highlights the importance of ensuring managers are aware of potential consequences of the references they provide. In most circumstances, the safest option is to provide factual reference which only confirms the dates they have been working for the company. The reference should also state that it is company policy to provide factual references (to prevent a future employer drawing negative conclusions).

Please contact Empire HR if you would like advice and support with writing a reference.

Tribunal Case Horror Stories - Trick or Treat?

Over the past year, tribunal cases have more than doubled in the UK, with the economic downturn being blamed on the unprecedented rise.

Steve Cook, Chief Executive of Empire HR based in Aberdeen discusses this with the Press & Journal.

In this article you will see some case studies that are more of a trick than a treat to employers!

Tweet

Proposal to Increase Unfair Dismissal Qualifying Period to two years

At the moment the Government is actively considering an increase in the qualifying period for unfair dismissal from one year to two years.

The timetable for decision is yet to be announced and it is very likely that there will be a consultation period (about this and other employment law issues) first.


If the change in the qualifying period occurs, it will be moderately good news for employers but bad news for employees. In theory this would mean that employers would have an extra year to dismiss an employee unreasonably. But the employer could still face allegations of discrimenation or unfair dismissal claims where no qualifying period is required. This would include things such as whistle blowing and certain health & safety, maternity and trade union related dismissals. With these claims tending to be more expensive to defend than 'ordinary' unfair dismissal claims, it is unclear whether employers will find this proposal an entirely favourable change.

New Year Resolution for Businesses

Empire HR is issuing this timely advice in response to the latest statistics from the Employment Tribunals Service, which reveal a 29% increase in unfair dismissal claims this year. This is obviously worrying news for businesses, which often have to find substantial sums of money to pay their disgruntled ex employees.

All employers should examine their disciplinary policies and working practices to ensure that the risk of a claim is minimised. In the current economic climate, the effects of a successful claim could be disastrous. It is also worth bearing in mind that it is not just the actual compensation that costs the business money; it is also the time and resources spent on defending the claim, which can severely affect a business.

With the maximum amount of compensation for a basic claim currently an astronomical £66,200, and discrimination claims being unlimited, it is essential that business owners and managers avoid the common pitfalls which often result in a claim.

Empire HR has the following top ten tips on avoiding a claim: 


1. Have a clear, up to date disciplinary procedure. 
This is essential. With no disciplinary procedure in place there is a strong chance that employees are not being treated fairly and consistently. The procedure will provide clear guidance to Managers conducting the disciplinary meetings. In addition, failing to use the proper procedure in accordance with the ACAS Code of Practice exposes the business to an uplift in the compensation if they lose a tribunal case.

2. Ensure that Managers know how to implement the disciplinary procedure.
All managers with responsibility for managing others should be trained in using the disciplinary procedure. Unfortunately, managers often do not realise how important it is to follow the procedure with the result that they compromise the fairness of the disciplinary sanction – ultimately risking a claim.

3. Communicate the standards expected, what types of conduct are/ are not unacceptable, and the workplace rules to employees. 

It is essential to ensure that all employees are informed of workplace rules as soon as possible and that they always have easy access to any updates. A person should not be disciplined for breaking the rules if they didn’t know about the rules in the first place.

4. Give the employee a fair hearing or a chance to explain. 

Employees should always be given an opportunity to be accompanied either by a work colleague or a trade union representative at disciplinary hearings, and be given the chance to explain any mitigating circumstances. The hearing must be as fair and unbiased as possible. After all, it is better to hear their side of the story at this stage than during a tribunal hearing!

5.Keep a record of all notices and formal warnings. 
It is important to take detailed and comprehensive minutes of all meetings. You cannot rely on warnings if there is no evidence of them! Also the outcome of the meetings must be given to the employee in writing.

6. Allow an employee the chance to improve. 

When going through a performance management process, reasonable objectives should be set within a fair timescale giving the employee the opportunity to meet the required standard.

7. Make the consequences of poor performance and/or misconduct clear to employees.
It is important that the outcome of every meeting is given to the employee in writing, stating clearly what could happen should the required improvement not occur.

8. Investigate in Full! 
There should always be a full investigation into every allegation. This becomes critical in circumstances which may lead to dismissal. A thorough investigation will often prevent the need for a disciplinary hearing, and will ensure that you are aware of the full facts before embarking on the disciplinary process.

9. Consider all the circumstances. 
All circumstances must be considered before deciding on the outcome of disciplinary action. For example, was the employee provoked or ill? A tribunal will want to know such details when determining if an employer has acted fairly and reasonably.

10. Be consistent.
It is important to ensure that every situation is dealt with in a consistent manner. If an employee can demonstrate that another person has not received the same treatment in the same circumstances, it can seriously weaken a case. It is also good practice since inconsistency can often lead to widespread discontent amongst employees.

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