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Annual Employment Tribunal and Employment Appeal Tribunal Statistics

Summary: Have you ever wanted to know how many claims are accepted by Employment Tribunals (ETs), the largest sums awarded by an ET and what the figures mean for employers? Keep reading to find out…

 

 

 

The Ministry of Justice has published the annual Employment Tribunal and Employment Appeal Tribunal statistics.

The latest statistics cover the period from 1 April 2011 to 31 March 2012.

The key findings are as follows:

Conclusion:

So what can employers take away from these statistics?

On the one hand it is encouraging that:

The statistics are however misleading in relation to costs. It is a common frustration among Respondents that they are unlikely to be able to recover their costs; unfortunately these statistics offer little comfort to employers on this particular issue; even more so, given that the statistics are distorted by a multiple claims case.

Finally, it is notable that in just 2% of unfair dismissal claims, the compensation awarded to the Claimant exceeded £50,000, meaning that only a tiny proportion approached the existing cap of £72,300. Despite this and the fact that figures indicate that unfair dismissal awards may be decreasing in value, the government continues to mull over reducing the existing cap. One cannot help but wonder whether the government’s focus should move on to another aspect of the ET process which could make a noticeable difference to employers for example, the ability to recover costs becoming the norm instead of the exception.

Rachael Jessop, Solicitor

Contact Information

fgmedia@floydgraham.co.uk

+44 (0) 1604 871143

This update is for general guidance only and does not constitute definitive advice.  

Updated: by FG Solicitors
Call us on:  0808 172 93 22

ANNUAL EMPLOYMENT TRIBUNAL AND EMPLOYMENT APPEAL TRIBUNAL STATISTICS

Summary: Have you ever wanted to know how many claims are accepted by Employment Tribunals (ETs), the largest sums awarded by an ET and what the figures mean for employers? Keep reading to find out…

 

 

 

The Ministry of Justice has published the annual Employment Tribunal and Employment Appeal Tribunal statistics.

The latest statistics cover the period from 1 April 2011 to 31 March 2012.

The key findings are as follows:

  • There has been a 15% fall on the number of claims accepted by Employment Tribunals (ETs). There were however slight rises in claims for disability discrimination, religion and belief discrimination, and a failure to inform and consult on redundancy.
  • The largest sum awarded by an ET was £4,445,023; this was a race discrimination claim. Other high awards were made in age and disability discrimination claims.
  • The largest unfair dismissal award was £173,408 which is in excess of the statutory cap of £72,300. However, this cap does not apply where the unfair dismissal is for whistleblowing or for raising health and safety reasons.
  • In unfair dismissal claims, ETs awarded compensation in just 21% of successful cases, with a median award of £4,560. In only 2% of these cases was the amount awarded over £50,000.
  • The number of costs awards made by ETs rose from 487 to 1,411 and 1,295 of those awards were made to the Respondent. However, this figure is distorted by a multiple case which involved 800 claimants where they were jointly made liable for a costs award of £4,000 to the Respondent; this works out at £5 per Claimant. The maximum costs award was £36,466.

Conclusion:

So what can employers take away from these statistics?

On the one hand it is encouraging that:

  • Claims have fallen.
  • Compensation is only being awarded in approximately a fifth of successful claims for unfair dismissal which would suggest that employers are having some success with defences such as the Claimant having contributed to the dismissal and/or even if a proper process had been followed, the Claimant would have been dismissed; and
  • The median award for unfair dismissal is relatively modest.

The statistics are however misleading in relation to costs. It is a common frustration among Respondents that they are unlikely to be able to recover their costs; unfortunately these statistics offer little comfort to employers on this particular issue; even more so, given that the statistics are distorted by a multiple claims case.

Finally, it is notable that in just 2% of unfair dismissal claims, the compensation awarded to the Claimant exceeded £50,000, meaning that only a tiny proportion approached the existing cap of £72,300. Despite this and the fact that figures indicate that unfair dismissal awards may be decreasing in value, the government continues to mull over reducing the existing cap. One cannot help but wonder whether the government’s focus should move on to another aspect of the ET process which could make a noticeable difference to employers for example, the ability to recover costs becoming the norm instead of the exception.

Rachael Jessop, Solicitor

Contact Information

fgmedia@floydgraham.co.uk

+44 (0) 1604 871143

This update is for general guidance only and does not constitute definitive advice.