ACCORDING to the most recent labour market data, Northern Ireland unemployment rates reached the lowest in Europe in 2018.
During the last quarter, there were 2,000 additional people in employment, bringing the total number in the workplace to 845,000.
Undoubtedly this positive trajectory is great news for Northern Ireland and the economy as a whole. With growth in employment and therefore larger workforces, business owners must also be mindful of the potential risk of employee disputes and grievances arising in the workplace.
The government recently released the latest set of tribunal statistics for the period October to December 2018 and during this period, the number of single-claim receipts is up by 23 per cent from 7,957 in 2017 to 9,811 in 2018. This significant increase in employment tribunals year-on-year, should be an area of concern for employers. Not only are tribunals time consuming and stressful, but they also can leave you with a hefty bill.
There are of course measures business owners can take in order to protect their employees and their business and therefore to minimise the risk of disputes taking place or escalating to the scale of an employment tribunal.
At the outset you must ensure you have efficient and comprehensive policies and procedures in place within the workplace. Employer’s Liability is included in such policies and procedures and is a compulsory element. If a business diligently follows the agreed procedures and protocol, you could reduce the risk of an employment tribunal taking place at a later stage.
Investment in regular and ongoing employee training within your business can also divert a relatively small issue or grievance from spiraling out of control. Investing in a Human Resources consultant or an in-house HR division is a useful and beneficial resource for both employees and business owners, ensuring views, issues and concerns from all levels of the organisation are being heard and to offer guidance.
In 2017/18, TheBusinessDesk.com stated an average award of compensation was around £15,000, plus the costs of defending this type of claim, which could be in the region of £8,000. In addition to this, it’s not just the number of claims received that should be a concern for businesses but also the length of time they are taking to resolve. The mean age for a claim when it finished in 2018 was 30 weeks, which is four weeks longer than for the same period in 2017.
The ever-growing number of employee tribunal claims can be worrying for businesses . In order to protect your interests against an employment dispute, you should speak to your local insurance broker who can provide you with commercial legal expenses insurance and advice to help cover the costs and provide peace of mind. Your insurance policy could help you with legal advice prior and during a dispute, legal costs and an Employment Tribunal compensation award. Other common commercial legal exposures that a business may face include contract disputes, debt recovery, criminal prosecution defence and tax protection.
An employment dispute can be very difficult for business owners to manage, make the smart decision and protect your employees and business from any potential fall-out.
:: Angela Stewart is commercial manager at Autoline Insurance Group
