CBI and TUC lock horns over 'vexatious' employment tribunals

More than two-thirds of businesses believe that the number of "weak or vexatious" employment tribunals brought against employers has increased in recent years, according to a CBI survey.

The latest annual CBI-Pertemps employment trends survey, the publication of which coincides with the start of the TUC conference in Brighton, has found that 69% of firms said the number of weak and vexatious employment tribunal claims had increased; and 44% of companies believe that the current employment tribunal system is "ineffective".

The survey of over 500 firms concluded that there are fears that new legislation on age discrimination due in October 2006 will lead to an "explosion of unnecessary tribunal cases".

Official figures from the Employment Tribunals Service, quoted by the CBI, found that the number of employment claims increased by 17% between April 2003 and April 2004 - an extra 16,425 individual claims.

John Cridland, CBI Deputy Director-General, said: "The have-a-go mentality is fuelling a surge in dubious employment tribunal cases that is both costly and time-consuming. With the compensation culture spiralling out of control, companies do not have confidence in the current tribunal system and are sceptical about the difference that government reforms will make.

He added: "In fact firms fear that legislation to be introduced on age discrimination will make matters worse, sparking an explosion of employment tribunal cases. In the current compensation culture, there is a risk that people will take advantage of a lack of legal clarity."

Commenting on the survey, TUC General Secretary Brendan Barber said that the CBI had got it wrong – unions were not behind the vast bulk of tribunal cases, as they came from non-union employers.

The 17% rise in case was not a long-term increase, but "simply a one-off blip in cases about dress codes", he added.

Mr Barber said: "The best way for the CBI to reduce tribunal cases would be to encourage their members to recognise unions and agree fair procedures that can deal with difficulties without resorting to legal action."

He added: "The CBI should focus on the facts on tribunals, temporary agency workers and National Minimum Wage. There is no evidence of an increase in vexatious tribunal claims."

The TUC said that according to the latest annual Trade Union Trends survey the numbers of tribunals brought by trade unions fell by 40%, due to "effective collective bargaining".

(gmcg/mb)