The number of employment tribunal claims is an ambiguous one

The introduction of employment tribunal fees and Advisory, Conciliation and Arbitration Service (ACAS) this April appears to be one of the greatest periods of change that our employment law team has seen, especially since the introduction, and then withdrawal, of statutory dispute resolution procedures.

The recently published statistics from the employment tribunals service for the period of October to December 2013 quoted a decrease in the number of claims by 79 per cent compared to the same period in 2012. While some in the profession are convinced that this is a direct result of the fee scheme, others are more cautiously considering that it may in fact be as a result of an improvement in the general economic stability in UK businesses. The figures will be interesting once Early ACAS conciliation is in full swing.

However, fees are not stopping claimants who just want their day in tribunal and can afford to do so, having have represented at least two clients in recent months faced with claimants who did not listen to reasoned argument about their case weaknesses, and insisted on taking things to tribunal only for the inevitable to happen: they lose the case.

While the team have had an increased success in claiming costs against the losing party, the balance still does not appear to be in favour of those employers who are not insured and have additional costs in dealing with unrepresented parties, in particular those who do not understand the system, or whose actions result in unnecessary additional work.

In any event, my colleagues and I are adapting the way we work. Our time is now spent dealing with advice work, acting as a contracted-out expert resource clients of all sizes and in various sectors, with a particular emphasis on personal service, understanding the sector and clients’ specific needs.

The stigma and perception of solicitors being an expensive resource by clients appears to have dampened. Instead, they seek area experts to strategically and commercially plan their HR decisions and ending disputes early before they turn into anything they shouldn’t.

Employment law advice now appears to be entirely proactive rather than reactive. I’ve witnessed a vast increase in this type of work, including bespoke training programmes for clients, along with the usual day-to-day advice and support. Regional law firms are at an advantage in developing these services compared with their larger counterparts.

Peers across different firms and I agree that there is a change in tide in how we do things, but it is a natural progression with specialists being able to sell their services based on quality and personal service.

This is compared to what
has been labelled the scaremongering tactics of retainer-led insurance companies cutting off clients’ ability to shop around when they are tied into lengthy periods with no option to withdraw.

As the tribunal system readies itself to penalise those employers who do not successfully defend claims, initial advice and support has got to be the key to the continued success of our sector.

If clients can see that they are empowered to make decisions for the commercial future of
their company at the same time as further reducing risks of adverse reaction from
employees that can only be a good thing all round. 

Louise Haward is a partner at Smith Partnership