The Employment Tribunal Service has recently published its annual employment tribunal statistics for 2006/07 (1st April to 31st March). The number of claims has risen again, this year by 15%, from 115,039 in 2005/06 to 132,577. Despite the rise, the ETS confirms that they have managed to reduce the waiting times for single cases appearing before the Tribunal.
Unfair dismissal claims accounted for the greatest number lodged, at 44,491, closely followed by equal pay claims which saw the largest increase, rising from 17,268 in 2005/06 to 44,013. This is a 155% increase which has contributed significantly to the overall rise in claims and is also likely to be responsible for the 26% increase in multiple cases (as compared to a 3% rise in single cases). Indeed, multiple cases now account for 60% of all claims received. Interestingly, national minimum wage claims are also up by 83%.
Discrimination claims (28,153 in total) have also continued to rise (save for race), with the greatest increase of 98% being seen in relation to sex discrimination (many of which were lodged in conjunction with equal pay claims), followed by claims under the Part-time workers Regulations which have seen a 93% increase from 402 to 776 claims. A total of 5,533 disability discrimination claims were received, compared to 648 and 470 claims respectively in respect of discrimination on grounds of religion/belief and discrimination on the grounds of sexual orientation. In contrast, the number of race discrimination claims is down by 8% from 4,103 in 2005/06 to 3,780.
Notably, the statistics for 2006/07 include age discrimination claims for the first time. Since the new Age Regulations came into force on 1st October 2006, there have been 972 claims but interestingly, the statistics indicate that none of these were successful at Tribunal. 38% of claims were withdrawn and 41% settled through ACAS. As a result it is not possible to provide any details concerning awards.
Maximum and average levels of compensation awarded by the Tribunal have decreased since 2005/06, although the median awards for sex and race claims are up. More specifically, in race discrimination cases, last year’s average award has been halved to £14,049, whilst the median award was £7,000. The maximum award fell dramatically from £984,465 to £123,898. The highest discrimination award was in respect of disability discrimination (£138,648) with the average award being £15,059 and the median, £8,232. The highest award in respect of sex discrimination was £64,862 (compared to £217,961 last year), with an average award of £10,052 and a median of £6,724.
Overall, whilst many average awards are down on last year, the number of claims lodged continues to rise and claims often cost employers significant amounts in management time as well as in actual pounds sterling. In addition, we are yet to see the true impact of the Age Regulations as these statistics only relate to the period to 31st March (i.e. 6 months for age cases). Finally, whilst many employers will be enthusiastic about the future repeal of the statutory dispute resolution regulations, this is unlikely to happen before 2009 so they are here for a while yet. Employers should continue to reduce their chances of tribunal claims being lodged against them by ensuring that disciplinary procedures are followed, grievances are investigated and addressed and appropriate policies such as an equal opportunities policy are in place and that the appropriate training is provided to staff.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.