Law firm research predicts dramatic rise in employment tribunal cases in 2011/13

There could be as many as 370,000 more employment tribunal cases in 2011/13 as there were for 2007/09, research by Dickinson Dees has suggested.

The firm, which has developed an index of employment tribunal trends, calculates that – with an estimated cost of £7,000 for every tribunal commenced – the combined extra cost to employers could reach £2.6bn.

James Wilders, an employment partner at Dickinson Dees, said: “Since 1998 there has been an almost inexorable rise in the number of employment tribunals, with an average of 20,000 more new cases each year than in the previous one.

“This has been driven by numerous changes in employment law and regulations, combined with an increased awareness of workers’ rights and the increased damages available encouraging people and no-win no-fee legal advisers to mount more cases.”

Wilders said the “real problems” come from the way the UK has enacted EU law changes, with additional or ambiguous requirements often added.

Significant employment law changes from 6 April 2010 are:

• Additional paternity leave
• The right to request time off for study and training, and
• The new ‘fit note’ regime.

There is strong evidence that the rate of growth in tribunal claims could increase even faster, Wilders added, pointing to a likely rise in equal pay claims now that the Equality Bill looks set to make it onto the statute book before the election.

The Bill will also see the introduction of a new socio-economic duty on public sector bodies, requiring them to consider what action they can take to reduce socio-economic inequalities service users face.