According to the latest full-year figures recently released by the Tribunal Service, the number of claims made in the year 2007/08 reached a record high of 189,303.
The dramatic rise in cases - up 43% on the previous year - is thought to be due in large part to the ongoing recession. Many of the cases heard related to equal pay and working time regulations, but a significant number involved redundancy and unfair dismissal.
Provisional figures for 2008/09 show that this trend looks set to continue. In the period between April 2008 and February 2009, the number of claims concerning redundancy payments rose from 7,313 to 9,220, and claims for unfair dismissal, breach of contract and failure to consult over redundancies also increased substantially.
The reasons for the increase in cases are inevitably tied in with the UK’s current recession. The unfavourable economic climate has forced many businesses to lay people off, cut working hours or reduce employee benefits, which are all measures that can lead to claims under employment law if not negotiated correctly by employers.
The speed with which the recession hit appears to have taken many businesses by surprise. Some quickly rushed into changing working practices or laying off staff without following the statutory procedures, which has left them open to claims from disgruntled employees.
Prior to the recession, many employees who lost their jobs found it relatively easy to find alternative employment. With the economy in its current state, however, finding a new job is much more difficult, so workers may choose to pursue a claim to make up for their lack of income.
Employees are also much more aware of their rights these days, and are more willing to take a claim to a tribunal if they have an issue with their pay or conditions at work.
In the coming year, the trend of rising claim numbers looks set to continue, as the new Equality Bill passes into law. The bill will introduce stronger measures to combat discrimination in the workplace, which could lead to an increase in the number of claims related to age, disability and equal pay.
1 response so far ↓
1 Paul Latreille // Nov 30, 2009 at 9:00 am
Actually the most recent figures available are for 2008/9, and these reveal that the number of ET claims accepted actually fell back by around 20% from the figure you note above to a ‘mere’ 151,028. Most of this reduction was the result of a fall in the number of multiples, which has largely driven the rise in claims in recent years. The data, and a nice graphic illustrating the crucial role of multiples is available at http://www.employmenttribunals.gov.uk/Documents/Publications/ET_EAT_Stats_0809_FINAL.pdf
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