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Annie Hayes

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Tribunals could spiral

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New survey figures reveal that businesses are unaware of the new statutory dispute resolutions due to be implemented this October and in a warning to business, survey authors Peninsula say that ignoring the rules may leave employers exposed to Employment Tribunal claims.

The findings show that 97% of businesses are unaware of the implications of the new statutory regulations, despite 73% of respondents saying they are aware of the new laws.

As of October, all businesses regardless of size will be obliged to apply new documentation to manage disciplinary, dismissal and grievance procedures. The new steps-system will mean that employers will be exposed to costly Employment Tribunal claims if they fail to follow the correct procedures when dismissing staff.

In worrying news for British enterprise, 74% of survey respondents said that they would have thought twice about starting up if they had realised the amount of red tape and employment legislation involved in running a business.

Cost was also cited as a concern for businesses facing the new rules with 95% believing that the new legislation will cost their businesses both time and money.

Mike Huss of Peninsula said: “I fear that companies do not realise how much of an impact the new statutory regulations will have on their businesses. The sheer amount of time and funding required to satisfy the new legislation could prove to be enormous.

“So it is critical that employer’s try to absorb the new regulations and ensure that the regulations are understood and complied with accordingly. If these new statutory regulations are not taken seriously then I fear that employers around the country are sitting on time bombs waiting to explode in litigation claims.”

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Annie Hayes

Editor

Read more from Annie Hayes
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