INDUSTRY VIEWPOINT - Warning - more tribunals ahead

Martin Phillips, a solicitor who specialises in employment law and advisor to employment law consultant Lawrite, comments on the Computacenter tribunal cases (PC Dealer, 26 August)

The UK's largest reseller is facing at least 10 cases brought by former staff at the Employment Tribunal, including unfair dismissal, sex and racial discrimination.

Tribunal appearances are on the increase. The growth is partly attributable to the change of government, which has committed the country to closer relations with the EU. Employers should be aware of the implications - Computacenter is the tip of the iceberg.

First, there is a White Paper outlining plans to remove the present maximum of #12,000 that can be claimed in a tribunal for unfair dismissal. It proposes to make claims limitless. There is also the Fairness At Work Act, due next year. Should the act go through, it will reduce the qualifying period that staff need to work before they are legally entitled to compensation.

Currently, employees need to work full-time for a company for two years to have these rights. The government has said it will halve the time, which should offer staff better protection.

As for cases such as the ones against Computacenter, I can only see an increase in awards - in both numbers and amounts won. If the government removes the financial limit on unfair dismissal cases, it will bring it in line with sex and race discrimination complaints. In cases of unlimited damages, we could see colossal awards.

My message to employers is, take heed and get your act together. The number of cases at Computacenter is relatively high. Problems are inevitable in most large organisations, but employers need to be capable of managing systems to avoid too many claims. Many employers do not understand what they are liable for and lack trained staff to deal with situations internally.

The way to avoid discrimination cases is to ensure managers are adequately trained, backed up by a good personnel department.

Regarding the most popular claims, last year there were more than 80,000 applications to tribunals, over half of which were for unfair dismissal.

But the growth area employers really need to be aware of is disability discrimination. The recent Disability Discrimination Act is so wide-reaching that it paves the way for an increase in cases. The act bans all employers with 20 or more staff from discriminating against people with disabilities.

But this can encompass mentally based stress problems and even PMT.

Employers don't know what's about to hit them. Add in the Working Time Directive, to be implemented on 1 October, that restricts the hours people can work, and there has never been a better time to get advice.

Tribunals are also on the increase because employees are more aware of their rights. In the PC Dealer Computacenter story, one former employee said: 'Computacenter works on the basis that you cannot afford to take it to court.' Employees generally feel it is not economically viable to take employers to court, which is how employers get away with mistreatment.

But as we see at Computacenter, staff are going ahead with complaints.

They can cut costs by representing themselves and there is no reason not to win.

The Computacenter employee said he turned down a settlement to drop the case. He added he would like a Website to help. The site at www.lawrite.co.uk has information on employee rights.

Complaints against tribunals themselves include lack of account of injury to feelings. You can claim compensation for financial losses but not because you feel you were treated badly. Another worry is the length of time a settlement takes. But case times are improving: on average, an unfair dismissal case will be heard within two to four months, and a decision can be reached on the day of the tribunal.

Employers generally perceive tribunals as being biased in favour of the employee. I don't think that is justified. But a sensible employer would try to prevent it going that far by negotiating with the staff member to reach an agreement. Many cases are settled without ever becoming public.

Regardless of factors that hold employees back from taking legal action with employers, the number of cases Computacenter is facing is an omen for the future. The law is making it easier and more beneficial for employees to take action. Employees are becoming more aware of their rights and employers need to educate themselves about their responsibilities - only then will they be protected from the awards that are imminent.