Common Reasons Employers Get Taken to Employment Tribunals in England

As an employer, you must be aware of actions that may lead you to face an employment tribunal claim. Unfortunately, since the COVID-19 pandemic, employee tribunal claims have increased. Thus, it is highly likely your business may need to defend one. A successful claim in an employment tribunal can negatively affect your business and your reputation as an employer. Accordingly, it is useful to know some common reasons employers face the employment tribunal process so you can avoid these situations. This article will explain what an employment tribunal is and some common reasons why employers are taken to the tribunal. By taking preventative action and avoiding actions likely to lead to employee claims, you can minimise your risks of ending up in a tribunal. 

What is an Employment Tribunal?

An employment tribunal is an independent tribunal dedicated to employment law. It makes decisions regarding employment issues where there is a dispute between an employer and employee. A claim may arise where an employee or potential employee believes the employer has treated them unlawfully. For example, the employee claims:

• unfair dismissal;
• discrimination; or
• unfair deductions from their pay.

Common Reasons for Holding an Employment Tribunal

There are many reasons an employee may take you to an employment tribunal. However, some reasons are more common than others, and some of these are listed below.

Unfair Dismissal

Unfair dismissal is the most common reason employees take their employers to employment tribunals. If you dismiss your employee without a fair basis for doing so or when dismissing, you have acted unfairly, you may face an unfair dismissal claim. For most unfair dismissal claims, the employee should be working for your business for at least two years continuously.  

Fair reasons for dismissal are:

• capability or qualifications;
• employee conduct;
• redundancy; 
• where your employee has breached statutory duties or restrictions; and 
• “some other substantial reason”.

Breach of Employment Contract

Breach of an employment contract is a common reason an employer may be taken to an employment tribunal. If you breach any term in the employment contract, your employee may take you to the tribunal.

Wrongful Dismissal

Wrongful dismissal refers to dismissing your employee in a manner inconsistent with the employment contract. Therefore, it is a breach of the employment contract and can lead to a loss for your employee. An example of wrongful dismissal is when you terminate your employee without the correct notice per their contract.

Discrimination

Employers must not discriminate against employees. Discrimination in employment is unlawful where it concerns one of the nine protected characteristics.

A claim for discrimination at an employment tribunal can arise through discrimination which is:

• direct;
• indirect;
• harassment; or
• victimisation.

Whilst as an employer, you may not directly carry out any of the above, if you instruct, cause, induce or knowingly helped carry out the discrimination, an employee may seek justice in a tribunal. For example, an employee may claim discrimination due to unequal pay based on gender. 

Working Time Directive

The Working Time Directive should set out the work hours and the rest breaks during and between work hours. Therefore, the law restricts you in specific ways. Accordingly, the Working Time Directive is the second most common tribunal complaint employees file in the tribunal. Therefore, it is essential that you abide by the law in terms of when you require your employees to work and the breaks you allow them.

Key Takeaways

As an employer, it is in your interests to avoid a situation where you face an employment tribunal. This will undoubtedly damage your business and your reputation as an employer, and it can also be costly for your business. There are many common reasons why employers face employment tribunals, and knowing these may help you try to avoid them. For example, unfairly dismissing your employees or discriminating against them based on one of the nine characteristics protected by law, such as age or race. A further common reason for an employment tribunal is employers not abiding by the Working Time Directive, which covers a range of information about when your employee can work and the breaks you must give them.

If you need help understanding common reasons employers get taken to employment tribunals in England and Wales, our experienced employment lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on 0808 196 8584 or visit our membership page.

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