More than two thirds of employers (69%) say they have no effective protection against employees making wholly unjustifiable claims to employment tribunals. This is a key finding from a survey of employers’ experiences of managing workplace conflict, published in the run up to the CIPD conference on conflict management.
The Conflict Management survey report suggests that 61% of respondents have experience of an employee claiming unfair dismissal and ‘tagging on’ a discrimination claim in the hope of getting more compensation. Fifty-five per cent say they have endured a complaint against their organisation on malicious grounds.
52% think the law on unfair dismissal should be amended to make it easier for employers to dismiss. A similar proportion (54%) also support more effective case management to identify ‘vexatious’ claims, with exactly half supporting the move to require tribunals to award costs against losing claimants.
The survey also suggests very little confidence for the current dispute resolution system. Seven out of ten employers (70%) use compromise agreements to avoid the risk of tribunal claims, with more than half (52%) saying that their use of compromise agreements has increased in the last two years. Also, half of respondents (49%) say their organisation has increased its use of mediation in the last two years.
Mike Emmott, employee relations adviser, CIPD, commented: “This survey reflects the strength of feeling among employers about the failings of the current system for resolving workplace disputes. Despite many attempts in recent years to find a solution, the volume of tribunal claims has increased and employers believe they have no protection against weak or speculative claims.
“However the survey findings also suggest that recent plans outlined by the Government – to increase the minimum period employees serve before they can claim unfair dismissal from 12 months to two years – will have only limited impact on the number of claims. This is because many claims are linked to discrimination claims which can be made from day one of employment.
“The real problem is that the employment tribunal system itself is broken and its costs and benefits are wholly out of line. The Government needs to take a radical look at the existing machinery for protecting employment rights.”
Emmott continues: “It is encouraging to see that employers are increasingly using mediation to resolve workplace issues. Not only does the survey show that it is significantly cheaper than having to respond to tribunal claims, but a large majority of respondents say that it improves relationships between employees and reduces or eliminates the stress involved in more formal processes. In-house mediation, using trained managers and others, can reinforce a culture where people recognise they need to take some personal responsibility for sorting out their problems.
“It is also positive to see that organisations are increasingly training managers to have difficult conversations. This is vital if problems relating to employees’ performance or behaviour are to be nipped in the bud instead of escalating to the point where formal and often lengthy disciplinary action has to be taken.”