Steep increase forecast in employment tribunals
Commercial insurance
9th April 2010
Employment tribunal rates in the UK could grow substantially over the coming three years, a new report forecasts.
According to the Dickinson Dees Employment Tribunal Trends Index, employers could be faced with as many as 370,000 more tribunal cases by 2013 as they did between 2007 and 2009.
Each tribunal costs the firm concerned an average of £7,000 and the amount spent by employers on their defence is such cases is expected to grow by 46 per cent to £2.6 billion over the coming three years.
James Wilders, Dickinson Dees employment partner, remarked that changes in employment law and regulations had pushed up the number of cases, while there had also been a rise in damages and no-win-no-fee legal services in recent years.
"There is strong evidence that case numbers increase even faster in the years after new legislation is enacted," he explained, warning the Equality Bill could see a further boost in tribunals in the future.
The prediction by Dickinson Dees highlights the importance of having good liability insurance in place and could prompt companies to assess their policies.
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