A “perverted” system? The heads of the largest British businesses met with Premier David Cameron on January 10th to discuss the labor law reform aiming to increase competitiveness and encourage job creation in the private sector. The reform of employment tribunals is notably under discussion: for several weeks, employers’ associations have been encouraging the government to make employees who make a claim against their employer pay. The aim is to deter workers who make groundless claims. The British Chambers of Commerce (BCC) published figures showing the cost of the current system of employment tribunals for businesses: £8,500 (€10,230) in average for an employer to defend themselves at tribunal. The average settlement is £5,400 (€6,500), often making it cheaper for employers to settle, even if faced with a spurious claim. Three quarters of claims are settled out of court, via the Acas conciliation organization or privately. Rather than fearing losing the claim, the main reasons employers try to settle are to keep costs down.
loyer to defend themselves at tribunal. The average settlement is £5,400 (€6,500), often making it cheaper for employers to settle, even if faced with a spurious claim. Three quarters of claims are settled out of court, via the Acas conciliation organization or privately.
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