Leading survey of employment tribunals shows sharp drop in number of cases

A major survey published 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 employment tribunal cases it handled in 2004.

According to the survey, the number of employment tribunal cases handled for member companies fell from 2206 in 2003 to 1702 last year, a fall of 23%. In addition, the number of overall claims also fell to 3014 last year from 3564 in 2003, a fall of 15%. However, the number of cases which comprised multiple claims increased, to 40% of all cases compared to 29% in 2003.

EEF believes that the fall in the number of cases may be due to a combination of reasons:

The introduction of new dispute resolution and employment tribunal procedures in October 2004 A greater awareness on the part of employers of the need to follow proper procedures through awareness campaigns and the expert advice and guidance produced by EEF A significant reduction in the number of job losses in manufacturing in 2004 compared to the peak in the last downturn in 2002/3.

Commenting on the survey, 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. Whilst it is still too early to call, we would hope that the concerted attempt by employers and government to reduce the number of tribunal claims may be bearing fruit.”

In addition, the survey also showed the following:

23% of all claims were withdrawn by the claimant before reaching a hearing 77% of applications were withdrawn or settled before reaching a hearing Only 4% of claims were upheld by a tribunal The most marked increase in the type of claims is in disability discrimination claims, which increased by 42% compared to last year’s figures The majority of settlements and tribunal awards remain relatively low According to national statistics, of the claims proceeding to a hearing 55% were won by the respondent and 44% were won by the claimant. This compares with 82% and 18% respectively where EEF acted, demonstrating the continuing excellence of EEF legal services.

Notes for editors

The survey, amongst the largest of its kind in the UK, covered Employment Tribunal Cases handled by EEF’s 11 regional Associations in 2004. 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 around 6,000 companies of all sizes, employing some 900,000 people from every sector of engineering, manufacturing, engineering construction and technology-based industries.