14/09/10

By Claire West

HR Insight, a leading HR consultancy and part of top 20 UK accountancy firm Kingston Smith LLP, is calling for a review of the UK tribunal system, saying it is unduly tilted in favour of employees.

On Thursday, East London Employment Tribunal saw yet another example of how the UK tribunal system is unfairly biased towards employees, who are using the system as a no-risk way of making ‘easy’ money.

Numerica IT of Basildon, Essex, was forced to pay an out-of-court settlement of £10,000 to a disgruntled former director, who had been dismissed for gross negligence two years ago.

Despite the fact that Numerica had a strong case, managing director Mike Hickson could not risk the future of the business by running up further legal costs and a considerable amount of management time to defend a claim when there was no chance of recovering the legal fees, even if he had been successful.

Mr Hickson, said: “There is something fundamentally wrong with our justice system when employers are being forced into making payments to former employees because they can’t afford the time and cost involved in defending unwarranted claims.”

Joanna Cowie, Head of Legal at HR Insight, who prepared the defence for Numerica, said: “The time is long overdue when employees should be made to pay a fee to present their claim to the tribunal or have the tribunal review the merit of a claim before huge costs are incurred.”