DCP228 and Business Electricity
What is DCP228? DCP228 is a regulation to be introduced by Ofgem in April 2018 which will change the way busin...Read More
An employment tribunal is every SME’s nightmare. The Government has made changes but is the process any easier?
In a bid to ease the burden on businesses and reduce the number of frivolous claims employment tribunal fees were implemented in July 2013 and require claimants to pay both an issue fee of up to £250 and a hearing fee of up to £950 (depending on the claim).
There has already been a significant impact on the number of tribunal claims being brought, with recent reports showing a drop off of up to 70% since the fees were introduced. This has clearly been of benefit to business, with less time and money being spent on claims. Government figures show that claims for race discrimination fell by 59%, sex discrimination claims by 81%, unpaid wages claims by 80%, and unfair dismissal claims by 62%.
Reducing the unfair dismissal cap has also been good news for employers. In 2013, the maximum compensation payable on unfair dismissal was changed to be the lower of the statutory cap (currently £78,335) and 52 weeks’ pay.
With average earnings at just over £26,000 a year (according to the Office for National Statistics), this has reduced the potential exposure for most employers, making it easier to manage the expectations of employees on termination. This, in turn, helps reduce the number of claims and assists in settling at lower figures.
The ACAS early conciliation process, introduced in April 2014, should also benefit business. Emma Bartlett, partner at Charles Russell Speechlys law firm, notes: “If both parties engage in conciliation, this can reduce the need for subsequent litigation, saving businesses in terms of management time as well as costs.”
The other significant and controversial measure is the proposed introduction of equal pay audits. In October 2014 a power to enable tribunals to order employers who are found in breach of equal pay laws to carry out equal pay audits was passed. “This only relates to equal pay claims presented since that date and does not apply to micro businesses with fewer than 10 employees so it is not clear yet whether they will prove to be a burden for business,” Bartlett explains.
Lucy James, director of Quash, a recruitment process outsourcing provider says that addressing the gender pay gap will not be easy for SMEs. “It is tremendous that the government is finally acting positively on the gender pay gap and demonstrates a real shift in thinking which is long overdue,” she says. “However, the impact on business should not be underestimated as it will be very difficult to equalise salaries down, rather than up, which could impact on profits. “
Neil Carberry, director for employment and skills at the CBI, says that fixing the employment tribunal system remains a priority for businesses of all sizes. “Recent reforms aimed at encouraging early resolution of disputes, such as Early Conciliation and the introduction of fees, are steps in the right direction,” he says. “But fees need to be set at the right level to ensure legitimate claimants are not put off, and, more broadly, simplifying and speeding the work of employment tribunals would be in the interest of employer and employee alike.”
Lorraine - Excellent experience dealing with you!
"I have been talking to Lorraine over the last couple of weeks about switching our gas/electric supplies. Lorraine was more than keen to help and went to a lot of trouble researching the best prices on the market for us. These were all confirmed by emails which allowed me to compare with our current supplier in a clear way. Ultimately our current supplier made an offer we felt was comparable to the best Lorraine had found and we decided to stay with them (B.Gas) but I am very grateful for all of the help she gave me - for no result as it happens. A pleasure dealing with you Lorraine!"This review was posted by Richard Weekley on the 22nd of October 2018
Honest brokers who will actually save you money!
"I dealt with a gentleman called Mark Weeks. He was extremely efficient, helpful and humerous. He saved me 6 pence per/k/hr, quite the saving when your annual bill is over £12,000. I will be using this service again for my water bill!"This review was posted by EDWARD Wickman on the 22nd of October 2018
Cheryl Sreenan delivered excellent…
"Cheryl Sreenan delivered excellent customer service, professional and polite but very natural with it - it's great to deal with someone who knows their job and cares about their customers. Great savings too and a quick switch which is always good. Will be looking to switch other businesses when they are out of contract."This review was posted by Jackie Reeves on the 22nd of October 2018
Excellent service from Pamwan Johnson
"Excellent service from Pamwan Johnson. Polite, professional and was able to provide a much better deal than I was able to secure direct. Would definitely use this service again."This review was posted by Andrea Kirkham on the 22nd of October 2018
i cant fault the service recieved from…
"i cant fault the service recieved from nicole and daniel"This review was posted by alexander dawson on the 19th of October 2018