Law Commission calls for reforms to close “unsatisfactory gaps” in powers of employment tribunals

The Law Commission has made a series of recommendations for reform to the jurisdiction of employment tribunals, and the areas where they share jurisdiction with the civil courts to hear employment and discrimination claims.

In its report, Employment Law Hearing Structures, the Law Commission said there were “unsatisfactory gaps in employment tribunals’ powers which can mean that claimants have to bring two sets of proceedings because the tribunal cannot deal with all their claims”.

The law reform advisory body’s recommendations include:

• Increasing the powers of employment tribunals “so that they can decide claims of breach of contract brought by employees and workers while they are still employed. Currently, the employee has to have left the employer before bringing a claim”;
• Increasing the time limit for bringing all types of employment tribunal claims to six months (currently it is 3 months for some types of claim). “Tribunals would have the discretion to extend time limits where they consider it ‘just and equitable’ to do so”;
• Giving employment tribunals the power to give damages in breach of contract claims of up to £100,000 (currently the limit is £25,000). “This should reduce the need to pursue claims in two different courts”;
• Allowing tribunals to hear complaints by employees that they are working hours in excess of the maximum working time limits;
• Improvements to the procedures for enforcing employment tribunals’ awards to ensure employees receive the compensation in a timely fashion;
• Employment judges with experience of hearing discrimination claims to be deployed to sit in the county court to hear discrimination cases outside the employment field.

“These recommendations, if implemented, would enhance the protections that employees and workers receive from the employment tribunals against discriminatory and unlawful practices,” the Law Commission said.

Law Commissioner Nicholas Paines QC said: “Employment tribunals play an important role in resolving disputes and protecting the rights of workers, however the system is not working as well as it should.

“The reforms that we have recommended will bring real benefits for the courts and tribunals system and its users. The adjustments will improve employment tribunals’ ability to resolve employment disputes as effectively and justly as possible in one place.”