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Will Employment Tribunal Claims Decline Forever?

Posted: Friday, 4 January 2019 @ 13:43

Recent changes in employment law Tribunals have led to fees being introduced together with a capping of the level of Employment Tribunal damages that can be claimed for unfair dismissal. Unsurprisingly this has led to a decline in number of Tribunal which can be issued.

Official quarterly Tribunal statistics showed a 17% decline in claims between July and September 2013 compared to the same period last year. More significantly, there was a 42% reduction in the level of unfair dismissal claims.

Some points worth bearing in mind. It may be premature to view this as some marked decline in Employment Tribunal claims which will be issued by the Courts. Some claims were preloaded to avoid the Introduction of Tribunal fees in July.

My view is that you will see a decline in a number of overall claims with a reduction in the level of spurious claims being issued. A Tribunal fee will act as a deterrent. That is to be welcomed.

What is clear is to me is that as much as the 1990s and 2000s saw a significant growth in the level of employment law activity, this growth is over. The tide has turned.

One leading employment lawyer I know is deliberately developing expertise in another and complementary area of law to mitigate this. Good move. Nevertheless it is not all doom and gloom for us hard pressed employment lawyers.

On the other hand, as happened in Personal Injury market you will see insurance firms entering the market to offer payment of fees. This may lead to more interest in the market. One employment law firm I know is willing to pay fees to mitigate the impact on those claims with merit.

Conclusion, employment law is here to stay but in a reduced way.

Justin Patten, Solicitor.

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