Tory Unfair Dismissal Claims Absurd

3 Oct 2011


Tory claim that cutting rights to appeal to employment tribunal on unfair dismissals will lead to new jobs is absurd. Only about 5,000 claims succeed at tribunals each year in UK which is a successful claim for one in every 5,000 workers with a median level of compensation of £4,900 says GMB

There were 57,400 claims for unfair dismissals to an employment tribunal in the year to end March 2010. That is 24% of all the 236,100 claims that were accepted by employment tribunals on all grounds in that year. Some of the 236,100 claims cite multiple grounds for the claims. In the year to end March 2010 there were 95,200 claims relating to the working time directive, 75,500 claims for unauthorised deduction from wages, 38,310 claims for discrimination on grounds of sex, disability, race, religion or gender orientation and 37,400 claims for equal pay.

Of the unfair dismissal claims dealt with in that year 68% of the claims were settled or withdrawn before getting to the tribunal, 10% were struck out or dismissed before getting to the tribunal, 10% were successful at tribunal while 9% were unsuccessful and there was a default judgement in the remaining 3% of cases. Of the cases that were successful the median award for unfair dismissal was £4,900.

GMB released this analysis as the Tory Party announced plans to cut the right for workers between one and two years service to appeal to an employment tribunal on unfair dismissal.

Paul Kenny GMB General Secretary said “The very notion that reducing the rights of workers of between 12 months and two years service to bring unfair dismissal claims will create a single new job is quire frankly absurd. Job creation is not the real reason the Tory Party want to take away these rights. The real reason is that the Tory Party is increasingly being funded by asset strippers and predators who resent workers having any rights to challenge their exploitative ways. GMB members experienced this when the asset strippers took over the AA and sacked nearly 40% of the workforce in the greatest act of corporate bullying seen to date in the UK. This is why the Tories want to reduce the employment rights of ordinary workers not to be sacked from their livelihoods unfairly. They are the same old nasty Tories now shoulder to shoulder with the predatory elite.

A cursory look at the figures shows how absurd the Tory claims are on job creation. Out of 24.2 million employees in employment there are between 50,000 and 60,000 claims for unfair dismissal each year. That is less than one claim for every 400 workers or a claim from 0.2% of the total workforce in the UK. More than two thirds of these cases get settled before they reach the tribunal.  Only about 5,000 unfair dismissal claims succeed at tribunals each year. That is a successful claim for one in every 5,000 employees in employment in the UK. Successful claims attract a median level of compensation of £4,900.

The claim that this change will create jobs has as much foundation as the old Tory claim that the introduction of a national minimum wage would destroy millions of jobs when the opposite turned out to be the case. Same old Tory lies.“