Expert warns over growing tribunal costs

Employment expert Tom Watkins, who is based at the firm's York office in Bishopthorpe Road, believes the costs will be created by businesses defending themselves and by payments for awards.

New research from the firm shows that, if the current trend continues, employers will face around 370,000 more tribunal cases in the next three years than they did in the previous three.

The firm's Employment Tribunal Trends Index reveals that with an estimated average cost of 7,000 for every tribunal begun, employers will spend around 2.6bn more defending themselves in the coming three years than the previous three – an increase of 46 per cent.

Tom Watkins, an employment lawyer who specialises in advising employers, said: "Since 1998 there has been an almost inexorable rise in the number of employment tribunals, with an average of 20,000 more new cases each year than in the previous one.

"This has been driven by numerous changes in employment law and regulations, combined with the increased damages available encouraging people, an increased awareness of workers' rights and no-win-no-fee legal advisers to mount more cases.

"While many of the employment law changes originated from the European Union and this often gets the blame, the real problems come from the way they have been enacted in the UK, often with additional or ambiguous requirements added.

"Legislation created in the UK is also a big cause of the relentless increase in tribunals, and there is strong evidence that case numbers increase even faster in the years after new legislation is enacted.

"Indeed, if, as expected the Equality Bill makes becomes law in October this year, then there will potentially be a big increase in equal pay cases over the next couple of years."