
Increased public knowledge of legal rights coupled with the means to sue on the basis of 'no success, no fee' has been swelling the numbers of people prepared to take legal action to recover damages in compensation if they suffer 'injury'.
This includes employees!
The past few years has seen an explosion in the numbers of employees taking Employment Tribunal action against their employer.
Employment Tribunal claims have trebled in the past decade
Figures released by the CBI in Sept 2001 showed:
Complaints and claims by employees against employers at Employment Tribunal have trebled in the past decade.
A nationwide survey of "small to medium scale enterprises" from across all industry sectors undertaken by Legal Director Magazine in 2001 revealed that 43 % had been involved in at least one employment tribunal claim in the past five years.
According to Digby Jones, CBI Director-General, "In too many cases the tribunal system is the solution of first resort rather than last resort. ..... While most cases are genuine, firms are worried that a punt-for-cash culture is taking hold."
The cost of Employment Tribunals has also been escalating
Figures released by the CBI in Sept 2001 showed:
Basic tribunal costs have also risen four-fold over the past decade
The cost to business of Employment Tribunals has risen 50 per cent in just two years
Employees are now more likely to sue in the civil courts (cranking the costs up even higher!)
Where an employer has failed (or refuses) to take "reasonable steps" to protect against violence (including bullying and harrassment) employees might well be justified in resigning and claiming Constructive Dismissal (and compensation) at Employment Tribunal.
However, there are statutory limits on the level of damages which can be awarded and time limits for bringing cases before an Employment Tribunal are also pretty tight.
Employment Tribunal claims must be brought within 3 months of the date of the last incident complained of (Discrimination cases) or 3 months from the effective date of termination of employment (Constructive Dismissal cases).
These limitations do not apply to cases brought to the civil courts and make it much more likely that cases of bullying/ harrassment will be heard in the Civil Courts.
Cash awards to bullied workers are becoming commonplace
Cash awards to bullied workers are becoming commonplace - and the level of compensation is usually eye catchingly large.
Examples:
(1) In 1998, deputy head teacher Anthony Radcliffe won £100,000 compensation after being bullied by colleagues at a primary school in Tenby, South Wales;
(2) In July 1999, Beverly Lancaster, a former part time Birmingham City Council employee was awarded £67,491 compensation, following a claim for 'personal injury' caused by workplace stress; (Note: David Cooper, the chairman of public service union UNISON'S legal department, welcomed the decision as a "historic precedent", adding that the union is investigating a further 7000 stress-related complaints.)
(3) July 2000, Cath Noonan, a home help employed by Liverpool City Council received £84,000 in an out of court settlement after being bullied by a colleague.
The total costs?
The cost consequences of violence at work amounts to millions and millions of pounds every year.
The results of a study conducted by the University of Manchester School of Management (released in 2000) suggested that the cost of workplace bullying includes as many as 18 million working days a year lost through absenteeism.
CBI figures show that in 2000, 54,655 UK employees claimed 'damages' from their employer in the courts - for ill health, injury and stress. 51,936 of them won - and were awarded a total of £320 million in payouts. (That's up £18 million on 1999.)
The full business cost will be millions of pounds more - as the figures do not include out of court settlements, productivity losses and extra staff cover, hikes in insurance premiums and other intangible costs like damage to reputation and diversion of management time.
Just one successful claim could totally eclipse the expenditure required to implement the necessary standards of safety.
Compensation awards are a matter for juries, but as an indication of the legal costs involved:
A County Court action (where the claim is over £50,000) will cost at least £50,000.
Claims over £50,000 are likely to cost in the region of £100,000 and could cost up to a million.
Look ahead!
Prepare yourself for what is almost certain to happen here - by looking at what is happening now in the USA.
Employers are now defendents in 40% of all civil actions
90% of employees who suffer violence at work take their employer to court.
Take a glimpse into the (near) future
MountainView Software Corporation is a USA based company that sells software products designed to help businesses report and manage high volumes of workers' compensation claims.
Reduce the risks now!