CBI sets out wishlist for reforming "legalistic" employment tribunal system

The CBI has outlined a package of reforms to the employment tribunal system, which it claimed is “slow, legalistic and antagonistic”.

In its submission to the Government’s Resolving Workplace Disputes consultation, the business group called for:

• Action to weed out claims: This would include “making sure people are aware of what they could achieve to avoid unrealistic expectations” and the introduction of a fee per claim so that only reasonable claims are brought. “Fees should never be a barrier to justice but should be proportionate and refundable on success,” the CBI said
• Measures to encourage early settlement: “A formal system for making offers to settle, and advising the tribunal when a reasonable offer has been turned down, should be put in place”. The legal process around compromise agreements has also become unnecessarily complicated and expensive, the CBI said, and the government should make them much easier to use
• Using employment tribunal league tables to improve efficiency and consistency: Showing how different regions and individual judges perform against certain standards would encourage best practice and greater efficiency, the CBI said. The business group said a transparent mechanism showing how the system works across the country would restore credibility.

Katja Hall, CBI Chief Policy Director, said: “It’s always regrettable when the relationship between employer and employee breaks down to the point where a tribunal claim is made. But when this happens, both sides deserve a system that is consistent, quick and keeps legal costs to a minimum. Instead, we are saddled with a tribunal system that is expensive, stressful and time-consuming for all parties.

“Surely it’s in everyone’s interests for cases with merit to be heard quickly and settled, while weak claims are swiftly identified and weeded out. We’d like to see more workplace disputes being resolved before they reach tribunal.”

Hall claimed that the tribunals system had gradually become a barrier to justice. “Even where a successful outcome is likely, firms try to avoid the heavy costs and long delays,” she said. “A programme of common sense reforms is long overdue. We need to see a transparent, fairer system built around the interests of legitimate claimants and responsible firms.”