How do I reduce the value of an Employment Tribunal claim against me?

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If you have been named in an Employment Tribunal claim, there are a few ways that you can try to reduce the value of the claim against you.

First, you can offer a claimant alternative employment within your organisation. This could be at a different location or on different terms and conditions, but it would still allow them to continue working for you. Compensation is based on the financial losses a person suffers, so the sooner you can find a ways to stop their loss of earnings, the lower the value of the claim could be, especially if they are claiming reinstatement or reengagement. Of course, you may not want to re-employ someone who is suing you!

Second, you can try to reach a settlement with the claimant outside of the tribunal process. This could involve paying them a sum of money in exchange for them settling their claim or agreeing to make changes to their working conditions or hours. If you agree terms you should secure them via a formal settlement agreement.

Thirdly, you can source evidence of other available jobs the claimant could have applied for outside your business. This will help the tribunal decide whether the claimant has ‘mitigated their loss’. If not, the tribunal can reduce an award for this reason. This involves arguing that the claimant has not suffered any financial loss, or that their losses are not as great as they claim. If you are successful in reducing the value of the claim against you, this could mean that you have to pay less in damages if the case is decided in the claimant's favour.

Fourthly, if the claimant has not followed the ACAS code, there could be an argument for a reduction in compensation of up to 25%. The facts of the case will depend on whether such an argument is present. Conversely, make sure you follow the ACAS code of practice relating to any disciplinary and grievance processes to avoid an uplift of up to 25% on any compensation awarded to the claimant.

Fifthly, if the claimant’s conduct was such that it was the cause or contributed towards the dismissal, then you can argue they contributed to the termination of their employment. If the tribunal agrees, it can reduce the award by a percentage from 0%-100% depending on how culpable the tribunal believes the claimant was.

Finally, you can argue that the dismissal would have happened in any event. This argument usually applies where there has been a failure to follow a fair process, but the outcome was right and would have been the outcome had the correct process been followed. If successful, this can help limit the award to the time it would have taken to follow a fair process, which could be a matter of weeks in redundancy or misconduct cases.

Article by

Louise Maynard

0800 915 7777

Our expert employment law solicitors all have many years’ experience advising individuals who are in your position. We will be able to guide you through the process and to help you secure the best possible outcome.

We offer a range of services, so please contact our friendly customer services team to discuss further via hello@kilgannonlaw.co.uk or 0800 915 7777.

Disclaimer

The above provides a general overview relating to tribunals and is not intended nor construed as providing specific legal advice.

This article is for information purposes only and is correct at the time of publication. It does not constitute legal advice.

26.08.23

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