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Home | News & events | Legal updates | Employers: Why you must comply with employment law

Employers: Why you must comply with employment law

12 July 2010

Recent annual statistics for employment tribunal services show claims submitted reached a record figure this year – up 56% on last year.

The most popular types of claim accepted by the tribunal were for unfair dismissal (57,400), unauthorised deductions from wages (75,000) and breach of contract (42,400). These showed an increase from last year's figures of approximately 8%, 54% and 23% respectively.

The figures come as no surprise to employment lawyers, who have noticed a significant upward trend in litigation against employers in the last 12 to 18 months.

Inevitably the recession has been a factor in this as employees who have little prospect of securing alternative employment feel they have no alternative and nothing to lose by bringing an employment tribunal case against their ex-employer.

Added to this, individuals are more aware of their legal rights then ever before thanks to the media and the internet.

This environment means that compliance with employment law by employers is a necessity not a luxury – getting it wrong could be very costly indeed.

The costs involved where an employer has to deal with employment litigation are not only monetary ones such as legal fees and settlement sums but also indirect costs such as management time and staff morale.

Given these latest figures the risk of a claim is greater than ever and the best defence for an employer is to ensure they have followed best practice for example, in respect of carrying out dismissals. 

Tips for employers

• ensure you have robust HR policies and procedures in place and that these are properly communicated throughout the organisation, particularly to line managers who may be dealing with disciplinary and dismissal issues
• ensure that HR and managers are fully trained and up to date on the latest legal requirements
• if in any doubt, seek legal advice at the earliest possible opportunity and in any event before you dismiss an employee – a small investment in legal fees up front could save you a lot of costs further down the line

© Shoosmiths. This page is for general information: it is not legal advice. Please read our full terms and conditions for details of the disclaimers and exclusions which apply.

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Kevin McCavish

Partner
T: 03700 86 8802
I: +44 (0)118 965 8802
E: kevin.mccavish@shoosmiths.co.uk