Businesses lose out in Tribunal Lottery….

A Nottingham lawyer is calling on the government to get tough with workers who plague their bosses with weak and frivolous compensation claims.

Sally Laughton, employment specialist at Anderson Solicitors, said everyone accepted that the rights of employees should be protected, but some people were abusing the system and costing small firms millions of pounds they could ill afford.

Ms Laughton said she had even come across serial complainants who moved from firm to firm making compensation claims. “Such cases are rare but they can be a problem,” she said.

Now, according to a report by the employers’ organisation the CBI, that problem has got so bad that businesses are losing faith in the employment tribunal system. They believe it’s ineffective and skewed against them.

The report, based on a survey of 450 businesses, reveals that many firms settle cases they have a strong chance of winning because they fear the cost of going to tribunals. According to the survey, every firm questioned with a staff of less than fifty settled every claim, despite advice that nearly half the cases were winnable.

Ms Laughton said that it‘s often the small to medium size firms that are the worst hit because they feel they don’t have the resources to fight an unfair claim.

“I would like to see costs awarded against people bringing frivolous cases. This would deter weak claims and make the system fairer.”

Ms Laughton urged employers not to give in too easily when faced by unreasonable claims. “I can understand a firm’s dilemma if they feel the tribunal system is more trouble than it’s worth, but if everyone simply gives in then it encourages more people to proceed with weak cases and the problem snowballs.”

“It’s vital to get legal advice from an employment specialist as soon as possible. Sometimes it’s cheaper to stand your ground and fight the case. But even when it’s necessary to settle, good legal advice at the outset can save thousands of pounds later.

Ms Laughton is a member of the Employment Lawyers Association.

For further information contact Sally Laughton, tel 0115 9886706, e-mail Sally Laughton.