With the recent tide of employment legislation and a more litigation minded society employers now find themselves facing an increasing number of Employment Tribunal claims. Although the vast majority of these claims are brought out of a genuine sense of grievance, there are many that are completely without foundation.
Employees are spurred on by reports of the levels of compensation awarded in high profile cases and often have little to lose in submitting a claim to the Tribunal. No application fee is payable when a claim is commenced and there are plenty of lawyers and "employment consultants" who are willing to take on claims on a "no win no fee" basis.
Due to the cost and management time involved in defending such claims, they are often settled before a hearing even though if defended the employer would be successful. Even with the most defendable of claims, it frequently comes down to a commercial decision in that it often costs more to defend a claim than to settle it.
