Member Article

Unsuccessful Tribunal claim still costs the employer £63,000.00

A Freedom of Information request has revealed that an employer has spent £63,555.00 in defence of a claim brought by three employees for, harassment, victimisation and sex discrimination.

The claim was withdrawn, in full, by the three claimants during the first week of a scheduled six week hearing. No out of court settlement has been made and each party is responsible for their own costs.

According to the British Chambers of Commerce the average cost to employers in defending an employment tribunal claim is about £8,500.00.

It was assumed that the introduction of tribunal fees would reduce the number of ‘give it a go’ claims that employers were compelled to defend. To some extent this has been accomplished. However, many potential claimants may have legal expenses insurance to cover their fees, or, in some cases have remission or their Trade Union pay their fees.

Despite the introduction last year of Acas Early Conciliation, this case highlights the amount of money that organisations are still having to fork out to defend potentially spurious claims.

It is abundantly clear that because of the high costs associated with this sort of case that there is an overwhelming argument for investment in the early implementation of independent Workplace Mediation.

This was posted in Bdaily's Members' News section by The Business Medic .