Employment Tribinals - The Cost of Getting it Wrong

[EmployEasily HR Services]

We've recently posted in our blog about a couple of Scottish businesses that found themselves at the wrong end of an employment tribunal award but here's another company who have fallen foul of employment legislation:

A council worker has been awarded compensation of £442,466 after being dismissed for whistleblowing.

Pauline Scanlon was working for Redcar Cleveland Council as an equalities officer when she complained that an appointment of new management was in breach of the council's equal opportunities policy since the position had not been advertised. After making this complaint, she was at first suspended and then dismissed from her £25,000-a-year job.

The high level of compensation was based on loss of earnings, as well as loss of future earnings, the expenses involved in seeking other work, pension loss, injury to feelings, aggravated damages and interest.

Protection for whistleblowing

Provisions introduced by the Public Interest Disclosure Act 1998 (and, in Northern Ireland, the Public Interest Disclosure (Northern Ireland) Order 1998) protect most employees and workers from being subjected to a detriment by their employer if they disclose information where they reasonably believe that one or more of the following matters is either happening now, took place in the past, or is likely to happen in the future:

• A criminal offence
• The failure to comply with legal obligations
• A miscarriage of justice
• A danger to the health or safety of any individuals
• A danger to the environment
• Deliberate covering up of information tending to show any of the above five matters

The thinking behind this law is that a worker should be able, out of a sense of public duty, to make disclosures about wrongdoing without fear of reprisals or adverse consequences.

A detriment may take a number of forms, such as denial of promotion, facilities or training opportunities, which the employer would otherwise have offered. Employees who are protected by the provisions may make a claim for unfair dismissal if they are dismissed for making a protected disclosure. Workers who are not employees may not claim unfair dismissal; however, if the employer has terminated their contract because they made a protected disclosure, they may instead make a complaint to an Employment Tribunal that they have been subjected to a detriment.

The disclosure must be made in good faith and not, for example, by the desire to advance a grudge against the employer.

The Employment Rights Act 1996 (and, in Northern Ireland, the Employment Rights (Northern Ireland) Order 1996) provides additional protection to employees who raise concerns about health and safety matters. For example, it would be automatically unfair to dismiss an employee who acts to protect themselves or others from serious and imminent danger.

[frockery]

Do you have a link to this case?

[EmployEasily HR Services]

Originally Posted by frockery

Do you have a link to this case?

I'm pleased to say NO! One of the main benefits of our service is they we're on hand to provide employment law advice so our Clients don't find themselves facing a tribunal in the first place but even if goes that far we protect them from the legal costs and award costs because our advice is insured.

[barryhynd]

Hi Alison,

Maybe the below will help

Council equalities whistleblower awarded more than £400,000 by tribunal

Again I can actually see why this award was made although I have to say the amount does really surprise me. To be honest it wasn't an area I was hugely up to date on so thanks to Gary for posting it. Who'd be an employer eh?

[EmployEasily HR Services]

No problem Barry - we post about these kinds of cases in our blog on a regular basis and try to highlight instances in Scotland but because of the size of the award and the nature of the case (whistleblowing) thought posting about thois case here might be helpful.

Whistleblowing is one of a number of areas where many businesses are unsure. In fact, on a daily basis we come across business that don't have any contracts of employment or HR policies in place at all never mind whistleblowing.

The scary thing is that many Employers don't realise that under UK Employment Law, they have a legal obligation to provide staff with a written statement of employment particulars within two months of staff members commencing work.

Failure to do so can land them at an employment tribunal, regardless of how long a staff member has been working for them.

With over 25 statutory rights under current UK Employment Laws, we strongly advise all Employers to not only provide contracts of employment detailing terms of employment but to also provide employee handbooks containing HR policies covering all of their statutory obligations.

As for written statements of employment particulars, as a minumum these should include the following:

• Employers name and your employees name
• Employee's Job title or a brief job description
• The date when the employment began
• Pay rate and when employee will be paid
• Employee's hours of work
• Employee's holiday entitlement
• Where the employee will be working (if they are based in more than one place it should say this along with the employer’s address)
• Sick pay arrangements
• Notice periods
• Information about disciplinary and grievance procedures
• Any collective agreements that affect employment terms or conditions
• Pensions and pension schemes
• If they are not a permanent employee how long their employment is expected to continue, or if they are a fixed term worker the date their employment will end

Last year there was a 15% rise in the number of individual employment tribunal claims raised by employees and with an ever growing community of 'No Win, No Fee' solicitors willing to take on aggrieved employees, this trend looks likely to continue.

[frockery]

Thanks, Barry. I found it by googling and flagged it up to J who says it is likely to be appealed.

Awards are getting interesting, but there is always that old Denning blood and stone argument that applies in cases where the taxpayer isn't footing the bill as in the above case.

[frockery]

Originally Posted by EmployEasily HR Services

with an ever growing community of 'No Win, No Fee' solicitors willing to take on aggrieved employees, this trend looks likely to continue.

A trend does not mean increased likelihood of winning, though, just that more people are jumping on the bandwagon. Tribunals outcomes are certainly not an exact science.

[EmployEasily HR Services]

Originally Posted by frockery

A trend does not mean increased likelihood of winning, though, just that more people are jumping on the bandwagon. Tribunals outcomes are certainly not an exact science.

Your absolutely right Alison which is why Employers should do everything in their power to strenghten their position.....i.e. ensuring contracts, policies, etc are completely up to date with current legislation, seek expert advice before taking any formal action with staff members and secure proper representation should they end up facing a tribunal claim.........

.............having insurance against the costs associated with employment tribunals (legal fees / awards) helps too!