A major report on employment tribunals handled by EEF, the manufacturers' organisation, one of the UK’s leading providers of employment law services has shown a sharp drop in the number of cases in 2005. However, the report also revealed a significant increase in the number of claims withdrawn by the claimant before reaching a hearing, more than double the number from 2004.
According to the report, the number of employment tribunal cases handled for member companies fell from 1702 in 2004 to 1227 last year, a fall of 28%. In addition, whilst the number of claims increased by 14%, from 3014 to 3449, this is accounted for by a number of unusual cases with a very high number of claims which inflated the figures. Extracting these from the overall sum would make the 2005 Claims figure also down about 25%.
EEF believes that the fall in the number of cases may be due to a combination of reasons:
- More effective use of dispute resolution and employment tribunal procedures
- A greater awareness on the part of employers of the need to follow proper procedures through awareness campaigns and expert advice and guidance produced by EEF
Commenting on the report, EEF Director of Employment & Legal Affairs, Peter Schofield, said:
“These figures suggest that the increasing tide of litigation we have seen over the last few years may have started to ease in response to a concerted attempt by employers and government. However, the increase in the number of claims withdrawn before reaching a hearing remains a concern.”
In addition, the report also showed the following:
- 47% of all claims were withdrawn by the claimant before reaching a hearing, up from 23% in 2004
- 90% of claims were withdrawn or settled before reaching a hearing, compared to 77% in 2004
- Only 2% of claims were upheld by a tribunal
- The majority of settlements and tribunal awards remain relatively low
- The continued excellence of EEF legal services was demonstrated; where EEF acted on behalf of the respondant, 80% of the claims proceeding to a hearing were won by the respondent and 20% were won by the claimant. This compares with 46% and 54% respectively according to national statistics.
The report, amongst the largest of its kind in the UK, covered Employment Tribunal Cases handled by EEF’s 11 regional Associations in 2005. A detailed breakdown of the results is attached.
EEF’s guide to Dispute Resolution was published in September 2004
EEF, the manufacturers' organisation, employs over 50 employment lawyers and 30 HR specialists who provide an employment law service to all types of companies across the UK through its regional associations. It has a growing membership of almost 6,000 companies of all sizes, employing some 900,000 people from every sector of engineering, manufacturing, engineering construction and technology-based industries.