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Starting 6 April 2024, significant changes have been made to the redundancy rights for employees on maternity leave, those who are pregnant, and those returning from family-related leave. This means enhanced protections for new parents in the workplace.
How have the redundancy rights changing?
Recent legislative updates bring about extended safeguards for employees taking maternity, adoption, or shared parental leave, aiming to provide added security during life transitions. The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 and the Maternity Leave, Adoption Leave, and Shared Parental Leave (Amendment) Regulations 2024, which came into effect on 6 April 2024, significantly broaden the rights of employees facing redundancy during these pivotal life events.
Previously, employees on maternity, adoption, or shared parental leave facing redundancy were entitled to be considered for any suitable alternative vacancy within their employer or any associated employer. Now, this protection is expanded to cover two additional periods:
- Protected Pregnancy Period: Beginning from the moment an employee notifies their employer of their pregnancy, this safeguard extends until the commencement of statutory maternity leave or two weeks post-pregnancy, if statutory maternity leave is not applicable. It’s worth noting that failure to notify the employer timely may result in the loss of this protected period.
- Extended Post-Leave Protection: Following the conclusion of statutory maternity, adoption, or shared parental leave, employees are entitled to an additional safeguard lasting 18 months. This period commences the day after the employee’s leave ends and continues while the employee remains continuously employed.
The implementation specifics vary depending on the circumstances:
- For pregnancies, the extended protection begins either at the start of the week the baby is expected or on the actual date of birth if notified to the employer.
- In adoption cases, protection initiates upon the child’s placement with the employee.
- Shared parental leave cases trigger the extended protection either on the child’s birth date or upon placement for adoption.
These regulations not only address immediate post-leave transitions but also provide a buffer for employees as they reintegrate into the workforce following significant life events. The changes come into effect for employees notifying their employer of their pregnancy on or after 6 April 2024, and for those whose statutory leave periods conclude on or after the same date. By strengthening employment rights during maternity, adoption, and shared parental leave, these amendments aim to foster a more supportive and equitable workplace environment for parents navigating both professional and personal responsibilities.
Preparing for the Transition:
These changes align with other family-friendly adjustments to legislation, including flexible working rights, paternity leave enhancements, and the introduction of a week’s carer’s leave. To ensure compliance and support new parents effectively, organisations should review their policies and procedures to encompass those on maternity, adoption, or shared parental leave.
We have a dedicated employment team at Franklins. If we can be of any assistance to you, please contact the Employment Law team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk
The Spring Budget 2024 has ushered in substantial changes to tax and National Insurance contributions (NICs), affecting both employers and employees across the UK. These alterations are integral to the government’s overarching economic strategy, aiming to improve living standards, and maintain a fair tax framework.
Chancellor Jeremy Hunt commented that : ‘the combined effects of these reductions to National Insurance means that a person on the average wage now has the lowest effective personal tax rate since 1975.’
The government anticipates that the reduction in NICs will stimulate the economy by boosting the total hours worked, equivalent to nearly 100,000 full-time workers by 2028-29. Employers should assess how this broader economic stimulus might affect their businesses, potentially leading to increased demand for goods and services.
Here’s a comprehensive guide to help employers and employees grasp the implications of these changes and prepare for the new financial year:
Key Changes for Employers and Employees
1. Reduction in Employee National Insurance Contributions:
The government has announced a noteworthy reduction in the main rate of employee National Insurance by 2 percentage points, dropping from 10% to 8% effective 6 April 6 2024. This follows a previous 2p cut in January, resulting in substantial savings for employees.
2. Adjustments for Self-Employed Individuals:
Self-employed professionals will also benefit from a reduction in their National Insurance contributions. The main rate of Class 4 NICs for the self-employed will decrease from 9% to 6%, starting 6 April 2024. Coupled with the abolition of the Class 2 requirement, this represents significant savings for self-employed individuals.
3. Impact on Take-Home Pay:
These NICs reductions will directly increase the take-home pay of millions of workers nationwide. For instance, an average worker earning £35,400 can expect to save over £900 annually, while a self-employed individual earning £28,000 will benefit from around £650 in yearly savings.
4. Employer Considerations:
Employers must update their payroll systems to reflect these NICs changes accurately. It’s crucial to ensure that the new rates are applied correctly from the designated start date to avoid discrepancies in payroll processing and employee deductions.
Preparing for the Changes
- Payroll System Updates: Employers should collaborate with their payroll software providers or in-house payroll teams to ensure systems are updated in line with the new NIC rates.
- Employee Communication: Transparent communication with employees regarding the impact of these changes on their net pay is crucial. Employers may consider issuing guidance or hosting informational sessions to address any queries.
- Financial Planning: Both employers and employees should review their financial plans in light of these changes. Employees, especially, might explore how to optimise the additional income through savings, investments, or other financial strategies.
The changes to tax and National Insurance contributions outlined in the Spring Budget 2024 mark a significant shift in the UK’s fiscal policy, with direct implications for employers and employees alike. By understanding these changes and preparing accordingly, businesses can ensure compliance, while employees can make informed decisions about their personal finances.
If you require any advice on your employment rights or how these changes may affect you, please contact our Employment Law team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk
As we observe World Autism Awareness Week, let us reaffirm our commitment to creating workplaces that embrace diversity and empower all employees to thrive. By understanding and addressing the unique challenges faced by autistic individuals, we can build more inclusive and supportive environments where everyone can succeed.
In view of World Autism Awareness Week, it’s imperative to shed light on the challenges faced by autistic individuals in the workplace. Despite their valuable contributions, autistic workers often encounter bullying, harassment, and discrimination from both their managers and/or co-workers.
Startling statistics from the Office of National Statistics (ONS) paint a concerning picture: only 22% of autistic people are employed in any capacity, and a staggering 47% choose to mask their autism, keeping it concealed from their employers.
In this blog, we delve into ways employers can support autistic workers and foster inclusive work environments.
Understanding Autism:
Autism, or Autism Spectrum Disorder (ASD), is a neurodevelopmental disorder characterised by difficulties in communication, social interaction, and behaviour. Autistic individuals perceive the world differently and may struggle with sensory processing, including challenges such as difficulty in communicating and interacting with others, sensitivity to bright lights, loud noises, and strong smells and challenges in understanding others’ thoughts and emotions.
Employers play a crucial role in creating an inclusive workplace where neurodiverse employees feel valued and supported. Here are some approaches to consider:
1. Adjusting the Recruitment Process
Some examples of adjustments that can be made in the recruitment process included allowing candidates to view questions in advance, allowing written answers, or even targeting recruitment for certain roles at neurodivergent people; all of which could help a potential neurodiverse employee overcome any challenges that the recruitment process might cause.
2. Address Sensory Sensitivities & Provide Reasonable Adjustments
Many autistic individuals are sensitive to sensory input, which can cause discomfort and distress. Employers can create sensory-friendly workplaces by providing noise-cancelling headphones, adjusting lighting levels, and using unscented cleaning products. In addition, reasonable adjustments may be necessary in the work environment that enable autistic employees to perform effectively. This can include modifications to physical workspaces, flexible work schedules, and alternative communication methods.
3. Encourage Disclosure
Employers should foster an open and supportive environment where employees feel comfortable disclosing their neurodiverse condition. This can help facilitate access to appropriate accommodations and support services.
4. Combat Discrimination
It is important for employers to understand that an employee’s neurodiversity could qualify as a disability under the Equality Act 2010. Discrimination of any kind has no place in the workplace and employers must actively address and prevent instances of bullying, harassment, and discrimination against autistic employees, fostering a culture of respect and inclusion.
For more information on supporting neurodiverse employees or combating workplace discrimination, please contact our Employment Law team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk
I have studied Employment Law as part of the Legal Practice Course. I remember that my reading of the subject largely consisted of construing a lot of case law, statutes and applying various tests to determine; whether an employee has been dismissed, if there was a potential fair reason for the dismissal, if a claimant can bring a claim for redundancy, if there is a defence to age discrimination, whether harassment has taken place at the workplace and so forth.
However, I don’t think the course was designed in a way to illustrate just how important Employment law actually is because it affects everybody, especially at various stages of their career. It can affect those who have just started out in their career right through to those who are nearing their retirement. Irrespective of one’s duration of being employed and their experience, employment disputes can be unpleasant and unsettling as people’s lives and their livelihoods are at stake.
Although, the case law does highlight how the average person can easily be up against a giant corporate company; thereby showcasing how the individual can be in a vulnerable -position and therefore should be protected. Therefore, it is imperative to focus on how the law is applied in real life. Whilst the textbook law might be straightforward and easy to digest, applying the law to real life scenarios is very different. In other words, how the law is perceived and understood by the general public is very different to how employment professionals perceive the law.
Employers commonly have access to their own in-house solicitors who can advise them on employment matters with their best interests in mind. Moreover, as a rule of thumb, employers are generally expected to stay updated with key changes in legislations and policies as they have various duties and obligations towards their employees that they must fulfil. Sadly, this is not the case for an average person. For instance, in cases where employees are served with a 17-to-20-Settlement Agreement consisting various legal jargons to decipher and sign within tight deadlines, they are undoubtedly placed in a very helpless situation. Therefore, Employment law is more than just case law and legislation as it deals with individuals’ lives. This is why Employment Law is such an important area of Law.
Unfortunately, disputes at the workplace are very common and so when things go wrong, we are here to provide solutions, as well as support and guide you through what can be a very stressful, overwhelming and emotional experience.
If you are an individual, we provide a plethora of services. Please see below for a non-exhaustive list of issues we can assist you with:
3. Redundancy
5. Breaches of contract
In the event that you are unable to resolve your employment issue and Employment Tribunal proceedings are necessary, we can assist you with taking matters further.
We also advise businesses (any size and industry) on a wide range of employment matters, namely:
1. Grievances
2. TUPE
5. Managing performances
6. Training
When advising businesses, we cannot take a one size fits all approach as each business is different. This is where a strong commercial literacy and having a good understanding of the various industries and how they operate is important when advising them about policies, employee performances, training and so forth. Therefore, providing effective support and assistance to employers that is tailored to their business needs and structure is pivotal which again is not something that is covered in law textbooks.
Whether you are a business or an individual, we can support you in your employment disputes.
If you require any employment advice, please contact our Employment Law team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk
The government has recently launched a consultation on the potential reintroduction of fees in the Employment Tribunal (ET) and the Employment Appeal Tribunal (EAT). This move follows the controversial introduction of fees in 2013, which was later deemed unlawful by the Supreme Court in 2017. The new proposal suggests a more modest fee structure with the aim of striking a balance between access to justice and the financial contributions of claimants.
In 2013, the Employment Tribunals and the Employment Appeal Tribunal Fees Order led to a significant decline of 68% in individual claims brought to the ET. The fees, ranging from £390 to £1,200, faced criticism for being unaffordable, particularly for those on low to middle incomes. In response, Unison initiated a judicial review in 2017, resulting in the Supreme Court ruling the Fees Order as an unlawful interference with the right of access to justice.
Following this decision, there was a sharp increase in the number of cases, prompting a review by the House of Commons Justice Select Committee. The committee recommended a reduction and restructuring of fees, and although the government expressed an intention to reintroduce fees, details were not provided.
On January 29, 2024, the Ministry of Justice (MoJ) launched a consultation proposing the reintroduction of a “one-off fee” of £55 for claims presented to the ET or appeals submitted to the EAT. Noteworthy aspects of this proposal include its application to all claim types, exemption for proceedings related to an individual’s right to a payment from the National Insurance Fund, and the availability of assistance through the “Help with Fees” remission scheme for those unable to afford the fee.
If implemented, these fees would come into effect from November 2024 onwards. The MoJ aims to strike a balance between access to justice and contributors covering the tribunal system’s running costs. The proposed fees, estimated to generate £1.3 – £1.7 million annually from 2025 onwards, are designed to incentivise early dispute settlement and align users of the tribunal service with other courts and tribunals.
Despite early criticism drawing comparisons to the previous regime, the proposed fee is notably lower, and safeguards such as fee assistance and exemptions are in place to address affordability concerns. This presents a uniform application of the fee aims to eliminate indirect discrimination against certain claimants, addressing past criticisms.
The consultation period ends on March 25, 2024, and further details and the consultation document can be accessed on the official Ministry of Justice website.
If you require any employment advice, please contact our Employment Law team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk
The Worker Protection (Amendment of Equality Act 2010) Bill has received Royal Assent, with the aim of empowering employees and fostering safer work environments by addressing and preventing sexual harassment.
The new legislation is set to be effective from October 26, 2024, and introduces crucial changes to the Equality Act 2010, focusing on preventing sexual harassment in the workplace. Employers are now obligated to take ‘reasonable steps’ to proactively address and prevent sexual harassment, shifting the legislative emphasis from redress to prevention. Additionally, this new legislation grants employment tribunals the authority to increase sexual harassment compensation by up to 25% when an employer is found to have breached the prevention duty.
Sexual harassment is defined in the Equality Act as unwanted conduct of a “sexual nature”. The law has primarily been introduced to protect women, however it applies equally to people of all genders.
Key Amendments:
While impactful, the legislation has undergone amendments, with the House of Lords eliminating the proposal to reinstate third-party harassment provisions and modifying the language to require employers to take ‘reasonable steps’ rather than ‘all reasonable steps’ to protect employees from sexual harassment. This adjustment introduces a more achievable standard for employers, distinct from the high hurdle of the existing statutory defence under section 109(4) of the Equality Act. To summarise, the key amendments include the following:-
Preventing Workplace Sexual Harassment: Employers will now bear a crucial duty – to take ‘reasonable steps’ in preventing workplace sexual harassment. This marks a pivotal shift, emphasising proactive measures over reactive responses.
- Compensation Uplift: In cases where sexual harassment is proven against an employer, the compensation awarded can see a significant uplift of up to 25%. This underscores the importance of employers fulfilling their duty to prevent harassment.
- “Reasonable Steps” defined: as mentioned above, the legislation initially called for employers to take “all reasonable steps,” but a House of Lords amendment has altered this requirement to “reasonable steps.” The absence of a rigid definition leaves room for interpretation, offering employers a more achievable standard.
Expectations from EHRC Guidance:
The Equality and Human Rights Commission (EHRC) is expected to release updated guidance before the legislation takes effect. The anticipated inclusions in the guidance are as follows:-
- Anti-Harassment Policies: A focus on comprehensive policies that address and prevent sexual harassment in the workplace.
- Effective Complaints Procedures: The importance of establishing clear and efficient procedures for reporting harassment incidents.
- Staff Training: Emphasis on ongoing and meaningful training for staff, ensuring they are equipped to address and prevent sexual harassment.
Looking Ahead:
As the EHRC prepares to provide additional guidance, employers are urged to proactively review and possibly revise their policies, procedures, and training programs. This forward-thinking approach will not only align businesses with the upcoming legislation, but also contribute to cultivating a safer and more respectful work environment.
The UK’s proactive approach to combatting sexual harassment in the workplace sets a precedent, emphasising the importance of fostering respectful and inclusive work environments. Despite the legislation’s scaled-back impact, employers should not overlook the new duty. Employers should proactively review and enhance their practices to align with the duty starting in October 2024. This may be in the form of updating anti-harassment policies, ensuring meaningful anti-harassment training to educate employees about their rights and responsibilities, as well as establishing clear reporting mechanisms for victims.
If you require any employment advice, please contact our Employment Law team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk
The new law provides special protection to pregnant women and employees that are returning from certain types of family leave in a redundancy situation. The Protection from Redundancy (Pregnancy and Family Leave) Bill received Royal Assent on 24 May 2023 and became the Protection from Redundancy (Pregnancy and Family Leave) Act 2023. The Act came into force on 24 July 2023.
What protection will employees be given?
The law provides greater protection to women that are on maternity leave or an employee that is on adoption or shared parental leave in a redundancy situation. In other words, before making a woman who is on maternity leave (or an employee on adoption or shared parental leave) redundant, an employer must offer a suitable alternative vacancy to them, where one is available.
Who will be protected?
The Act extends protection to:
- A pregnant employee who is in “a protected period of pregnancy”;
- An employee who has recently suffered a miscarriage;
- Employees returning from maternity leave;
- Employees returning Adoption leave; and
- Employees returning from Shared parental leave.
Expectant mothers could be provided with a period of up to 24 months protection on the basis that they:
- Inform their Employer of their pregnancy at the 3-month stage and
- Take the full 12 months of maternity leave; and
This works out as follows:
- Six months’ protection during pregnancy, plus
- Twelve months’ protection during maternity leave, plus
- Six months’ protection on their return to work.
What does it mean for Employers?
Employers are not required to take any immediate actions at the moment as the Guidance regarding the implementation of the Act is still awaited. The Guidance will provide further regulation explain how the new legislation will work. In the meantime, employers should be aware of the new Act but wait for the Regulations before implementing the Act.
In the meantime, Employers should consider the implications and update their policies to ensure they are compliant with the legislation and minimize the risk of potential discrimination claims on the grounds of pregnancy and/or maternity. Employers will be required to implement processes to identify the timeframe of earlier periods of maternity leave in redundancy situations, adopt systems to identify alternative suitable vacancies across the organisation and creating a supportive environment for employees returning from family leave.
If you require any employment advice, please contact our Employment Law team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk
The government is expected to bring the Employment (Allocation of Tips) Act 2023 into force in 2024.
The Employment (Allocation of Tips) Act 2023 imposes statutory obligations on employers to allocate tips, gratuities, and services charges to workers without making any deductions. Consequently, withholding tips from staff becomes unlawful resulting in more than 2 million workers’ tips being protected. It is estimated by the government that £200 million a year will go back to workers that would have otherwise been withheld from them.
The Act also provides that Agency workers cannot be excluded or disadvantaged from this benefit. Therefore, under the new legislation, agency workers also gain the statutory right to receive a share of their tip.
The new legislation once in effect will include:
- An obligation on organisations to fairly allocate tips, gratuities and service charges over which they exercise control or significant influence and pay them to workers in full within a month of the tip being paid by the customer.
- Where tips are paid on more than an occasional and exceptional basis, an employer must have a written record and policy, available to all workers, setting out how qualifying tips are dealt with. The records must be maintained for a three-year period beginning with the date on which the qualifying tips, gratuities or service charge were paid.
- Employees have the right to request information about the employer’s tipping record.
The consequences for non-compliance may include an award up to £5,000.00 per Claimant to reflect the additional financial losses caused by non-payment. Workers will have 12 months from the date of non-compliance to raise a claim in the employment tribunal if the employer has not complied with their obligation to fairly allocate tips within a month of the tips being received. In the event the employer has failed to comply with their obligation to have written polices and keep records under the Act, workers have three months to bring a claim in the employment tribunal.
Whilst the Act is due to come into force in 2024, employers in the hospitality, leisure and service sectors may wish to review their policies and practices now to ensure that they are compliant with the Act by the time it comes into force.
Our Employment Law team is able to assist you with a review of your policies and employee handbook and can help you identify any potential risks to be addressed in your current practices.
If you require any employment advice, please contact our Employment Law team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk
Office Christmas parties are a festive and eagerly-awaited event for many employees. However, it’s important to remember that employment laws still apply during these celebrations. Employers and employees should be aware of their rights, responsibilities, and potential legal issues that may arise.
In this article, we’ll explore some key considerations regarding employment laws and office Christmas parties.
Office Christmas parties can be enjoyable and boost employee morale, but it’s essential to ensure they comply with employment law regulations in the UK. By considering aspects such as equal opportunities, alcohol consumption, social media usage, discipline, and attendance policies, employers can create a festive atmosphere while mitigating potential legal risks.
While the below mentioned cases may seem like extreme examples of a work event gone wrong, this serves as a reminder for employers ahead of the Christmas party season of the dangers of employees behaviour and alcohol consumption.
- Equality and Discrimination:
Employers need to ensure that Christmas parties are inclusive and do not discriminate against any individual or group. This includes considerations related to gender, race, religion, disability, and sexual orientation. Any discriminatory behaviour or harassment can result in legal consequences for the company.
- Mrs C Palladino v Reed in Partnership Ltd: A middle aged HR worker sued her employer for age discrimination because her younger colleagues wanted to go ‘clubbing’ for their company Christmas party has lost her tribunal claim. Claudia Morel-Zifonte Palladino brought legal action against Reed In Partnership after her suggestion of a family-friendly venue for the work Christmas party was dismissed in favour of a more ‘entertaining’ option. Palladino, 45, claimed her younger colleagues were ‘negative to derisive’ in response to her recommendation, and thus she was treated unfavourably. Employment Judge R Lewis rejected her claims, ruling that she did not suffer a ‘detriment’ simply because co-workers disagreed with her suggestions. This case illustrates the importance of establishing a genuine detriment as the result of a protected characteristic.
- Alcohol Consumption:
Alcohol is often a central part of Christmas parties, but employers have a responsibility to ensure a safe and controlled environment. Implementing a clear alcohol policy is advisable to prevent excessive drinking and related issues. It is also crucial to provide alternative non-alcoholic options and arrange transportation for employees to ensure their safety.
- Drink driving after the office party: Other than giving the incredibly simple advice of ‘don’t do it’, ensure that employees are advised that:-
- they must arrange alternative transportation home if they are intending on drinking, and
- if anyone drives home after they are reasonably believed to be in no fit state to do so, that they will be subjected to disciplinary action which could result in their dismissal.
- Social Media Policies:
With the popularity of social media, employees may be tempted to share pictures or videos from the office Christmas party. Employers should have clear guidelines regarding the use of social media during company events. It is therefore important to remind employees about the importance of maintaining professionalism and respecting colleagues’ privacy.
- Misconduct and Disciplinary Procedures:
If an employee misconducts themselves at the Christmas party, it is essential to follow the usual disciplinary procedures outlined in the company’s employment policies. In serious cases, disciplinary action, including termination, may be appropriate. Consistency in addressing misconduct is crucial to avoid claims of unfair treatment. Caselaw illustrates how an employee who was sexually harassed at a work Christmas party has been awarded £18,857 after claims of sexual harassment, victimisation and unfair dismissal.
- Bellman v Northampton Recruitment Ltd [2018] EWCA Civ 2214: At a Christmas party, the managing director of the Respondent company physically attacked one of his employees leaving him severely disabled. The issue here was whether the company was vicariously liable for the actions of the Managing Director. The court in 2016 said that it was not, however the Court of Appeal allowed the claimant’s appeal and held the defendant was vicariously liable for damages due to the sufficient connection between the employee’s field of activities and the physical assault. The Court held that there was sufficient connection between the Manging Director’s field of activities and the assault to render it just that the Respondent company should be vicariously liable for his actions. Employers are reminded of the dangers of inappropriate conduct taking place inside and outside of the workplace. A defence to vicarious liability can be argued where the employer can show all reasonable steps were taken to prevent the unlawful act occurring.
- Christmas Party Attendance:
While Christmas parties are seen as a company-sponsored event, attendance is usually voluntary. Employers should clarify whether attendance is mandatory or optional. This can help avoid any legal disputes related to work hours or payment for attendance.
This article is for informational purposes only and should not be considered legal advice. Employers and employees are encouraged to seek professional guidance specific to their circumstances.
If you require any specific employment advice, please contact our Employment Law team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk to consult with an employment lawyer for any legal concerns related to office Christmas parties and employment law.
After two years of disruption and transition in the employment tribunal system, the statistics for April 2022 to March 2023 offer a fascinating look into the landscape of workplace disputes and tribunal awards. It’s essential to recognise the impact of data transitions in the Employment Tribunal’s case management system. Transitioning to the new Employment Case Management (ECM) system from March to May 2021 affected data consistency and availability. As a result, data for Q1 2021/22 is not available, and caution is advised when making statistical comparisons before and after migration.
This article delves into key findings, trends, and significant data from this period, shedding light on the state of employment-related legal proceedings.
Maximum Award |
Median Award |
Average Award |
|
Unfair dismissal |
£184,200 |
£6,201 |
£11,914 |
Race Discrimination |
£452,474 |
£11,400 |
£23,070 |
Sex Discrimination |
£995,128 |
£11,177 |
£37,607 |
Disability Discrimination |
£1,767,869 |
£15,634 |
£45,435 |
Religion & Belief Discrimination |
£92,039 |
£9,239 |
£19,332 |
Age Discrimination |
£84,723 |
£5,675 |
£14,210 |
Sexual Orientation Discrimination |
£82,168 |
£26,247 |
£31,623 |
Fall in Number of Claims
One of the headline statistics reveals a surprising trend. The total number of claims made during the 22/23 reporting period has decreased to 85,352. This figure is more aligned with the years prior to the abolition of employment tribunal fees in June 2017. In the years following fee abolition, claim numbers surged well beyond 100,000 annually. The drop in claims may indicate a return to the pre-2017 norm, reflecting complex factors like COVID-19 pandemic’s effects.
Trends in Award Quantification
The quantification of employment tribunal awards is highly dependent on the specific circumstances of each claim. However, certain general trends are worth noting in the 22/23 reporting period. Median awards across various heads of claims have seen a decrease compared to the previous year, except for disability discrimination cases.
The data reveals that in 2022/23, Disability Discrimination claims received the largest average award, standing at £45,000. The highest maximum award, a substantial £1,770,000, was granted in a Disability Discrimination case. These trends offer insights into the dynamics of tribunal awards with other notable awards including the following: –
- a substantial award of £995,128 was made in a sex discrimination claim;
- £452,474 was granted in a race discrimination case; and
- age, sexual orientation, and religion and belief discrimination claims saw awards ranging from £82,000 to £93,000.
Unfair dismissal cases usually face statutory caps, but one exceptional case received an award of £184,200 in the 22/23 reporting period, not subject to the cap. The median award for unfair dismissal claims, however, stood at just £6,201, with an average of £11,914.
It’s important to remember that most employment disputes are resolved through settlements and do not appear in these statistics. Many of these settlements could far exceed the average and median figures, potentially even reaching £1,000,000 agreements.
Rare Costs Awards
Costs awards in employment tribunals remain relatively rare. In the 22/23 reporting period, there were 195 cost awards, with 150 favouring respondents and 45 favouring claimants. The maximum costs award was £174,141, while the median costs award was significantly lower at £3,700.
Employment Tribunal Single Cases
In the first quarter of 2023, the Employment Tribunal received 7,900 single claim receipts and disposed of 7,100 single claim cases. Notably, there were 35,000 single claim open cases at the end of June. This suggests a growing caseload and the need for efficient case management.
Employment Tribunal Multiple Cases
During the same quarter, 16,000 multiple claim receipts were registered, with 6,700 disposals. The substantial open cases figure of 436,000 at the end of June underscores the complexity and volume of multiple claims. The dynamics of multiple claims can be influenced by a high number of cases against a single employer.
Representation and Costs
In 2022/23, 60% of claimants were represented by lawyers, a slight decrease from the previous year. Conversely, 31% of claimants had no representation recorded, reflecting a similar decline. This data suggests a relatively stable legal representation over the past few years.
Employment Appeal Tribunals (EAT)
The Employment Appeal Tribunal received 1,400 appeals in 2022/23, marking a 10% increase from the previous year. However, it disposed of 880 appeals, showing an 8% decrease in disposals compared to 2021/22.
Of the appeals handled at preliminary hearings, 43% were dismissed, with a higher dismissal rate for employer-initiated appeals. Additionally, when appeals reached the EAT final hearing, 40% were dismissed, again with a higher proportion related to employer appeals.
As the statistics for the next year become available, they will shed more light on whether the lower number of claims during the 22/23 reporting period is a lasting trend or a transient effect of the pandemic.
If you have any queries about Employment Law, please contact our Employment Law team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk