See you in court

John Lewis found itself the subject of many newspaper headlines for all the wrong reasons last month, when Konstantinos Kalomoiris, 40, launched a sex discrimination case against Bianca Revrenna, 68, for her alleged ‘bottom-slapping’ in the retailer’s Oxford Street flagship. The claim was thrown out last week at an employment tribunal, but it will have been an unwelcome distraction for all concerned.

Employment tribunals are increasing. Government figures show tribunal claims increased to 236,000 last year - up 56% on 2009. Businesses have to spend an average of £4,000 to defend themselves against a claim - and that’s not taking into account the time they consume and the stress they cause.

The Government is attempting to reduce the number of claims and draft employment law changes are under consultation. The proposed measures include an increase in the qualifying period for employees to claim unfair dismissal from one year to two years, the introduction of a fee to bring a claim, but also a penalty of a maximum of £5,000 on top of any compensation if an employer loses the case.

Uniqlo HR manager Nick Bartlett believes the claim fee will make employees consider more carefully about whether to bring a claim in the first place: “I’ve seen an increase in claims with little merit brought over the past three-and-a-half years I’ve been here. It costs £2,000 for lawyers’ letters back and forth and then the case is often dropped.”

Addleshaw Goddard employment partner Malcolm Pike says: “Imposition of a tribunal fee will reduce the number of unmeritous claims. It’s a greater disincentive for those on lower earnings.”

The extension of the qualifying period for unfair dismissal claims may sound like another positive change for retailers, but Bartlett disagrees: “A year is enough time to assess someone. The sooner matters are dealt with, the better.”

The extension could potentially increase the number of other claims brought to employment tribunal boards. Field Fisher Waterhouse employment partner Nick Thorpe says: “It could encourage employees to bring more spurious discrimination claims, which can be more costly and damaging to retailers and their brand. Discrimination claims don’t have a qualifying period.”

The penalty that is being considered could also be problematic, adds Thorpe. He believes the threat of being slapped with a £5,000 bill on top of compensation should employers lose could encourage them to settle weak claims they would otherwise have fought.

The proposed changes have benefits and disadvantages for retailers. But as the number of tribunals continue to rise, it’s important to look at the reasons why they are being brought against employers, and try to prevent them from happening in the first place.