human rights tribunal
The number of human rights tribunal made to the Employment Tribunal has grown enormously over the past decade. In the last recorded year, 132,492 claims were made by employees including 43,510 unfair dismissal claims, 47,776 breach of contract/unpaid wages claims and 17,842 discrimination claims. This is great news for employment lawyers but causes serious difficulties for small and medium sized businesses. To make matters worse, the maximum compensation for loss of earnings in a claim for unfair dismissal has arisen from £11,300 in 1997 to £53,500 today.
In response to the increasing risks of employment law litigation, there has been a very substantial growth in compromise agreements. A compromise agreement is a particular form of legal settlement under which an employee (or ex-employee) gives up the right to bring any legal human rights tribunal against their employer on the basis of some kind of financial payoff. Many companies in Swindon will insist that their employees sign binding compromise agreements as a condition of receiving enhanced redundancy pay. It is also common for employers to approach employees who are causing difficulty (for example on grounds of performance, health or conduct) and offer a financial payoff subject to a compromise agreement.
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