Did you know that there were more than 7,500 applications to employment tribunals in the final quarter of 2023? In that same quarter, more than two-thirds of the disputes (68%) had already been resolved by Acas early conciliation. This will probably be a better outcome for you than at a tribunal, but it does not mean that it will not cost you.
When you are running an SME, being summoned to an employment tribunal is always a risk. And this risk is going to get greater under the new government’s employment law changes.
Our latest podcast offers a great discussion on what you may feel when a former employee lodges an official dispute. It is packed with expert advice, balancing pragmatism and satisfying your sense of justice. If you don’t have time to listen just now though, here are some of the most important considerations.
Don’t assume the worst
You’ve just received a letter from Acas (Advisory, Conciliation and Arbitration Service) about a potential employment tribunal claim. Maybe you were expecting it, maybe it has come out of the blue.
Your heart may be sinking at the thought of conflict, time you are going to have to spend and potential costs. Now you’re at the early conciliation stage, which is a chance to resolve the dispute before it goes any further.
Mediation and early settlement
At this stage, Acas will offer to act as a go-between for you and your employee. It’s a great opportunity to nip things in the bud. Mediation can help you understand each other’s positions and potentially find a solution that works for everyone.
If mediation doesn’t work out, you might want to consider an early settlement. Yes, it might mean paying out some money, and this could go against your sense of justice, but it could save you a lot more in the long run. We can help at this stage, providing advice and leading on the negotiations to ensure you get the best outcome. We’ll be firmly on your side, seeing the bigger picture for you, and we will usually save you money.
This is where pragmatism comes in. Think about the time, stress, and potential legal fees involved in a full tribunal. Sometimes, it’s worth settling early to avoid all of this. But equally, you don’t want to send out signals that you are a soft touch, where other staff might see opportunity to make a few quick bucks with a claim of their own.
Another benefit of resolving at this stage is that you can keep matters private. It’s rarely in anyone’s interests to air dirty laundry in public and that is exactly what a tribunal court is – a public record and free for the press to report on.
By getting an adviser like us in early you can also take advice on the strength of your case. Often it can be a failure to follow a procedure which means you’ll lose, even if the underlying issue would have gone in your favour.
Just last week it was reported that an employee was awarded more than £5K for being fired after accidentally calling a customer an expletive word in an email. In her ruling the judge said “I am satisfied that if a fair procedure had been followed, there is no chance that the claimant would have been dismissed.”
An agreement facilitated by Acas is legally binding on both sides.
If it goes to tribunal…
If you go to tribunal there will be forms to complete, evidence to gather, and possibly witnesses to call upon. It is sensible to have legal representation, although not compulsory for you or them.
At any point up to the tribunal, it is possible to settle out of court, so always consider this as an option. There is currently a big back-log of cases so a tribunal ruling will not be a quick resolution, maybe up to two years. Use the time to ensure you get all your ducks in a row, gathering the relevant documents and witness statements while they are fresh in people’s minds.
How The HR Dept can help with employment tribunal protection
Prevention is better than cure and our retained Advice Line gives you unlimited telephone and email support to ensure you make the right decisions and follow the right processes. It also provides regular documentation updates.
Better still, it actually comes with tribunal protection insurance. This means that as long as you followed our advice from the outset, tribunal costs will be covered by the insurance. To find out more, get in touch.
