by business editor Trevor Sturgess

Bosses have dismissed the Government's proposed reforms to employment tribunals as "timid and flawed."

Rodger Broad, director of the Institute of Directors South, representing thousands of members across the county, says they will not achieve any significant reduction in the number of weak complaints and costs in management time and legal fees.
"Being timid will get us nowhere," he said. "Employment tribunals need radical reform. Unfortunately, the Government's proposals, although well intentioned, will do little to tackle the problem of weak claims.

"What we need are stronger strike out powers for tribunals, universal employee deposits and compulsory pre-claim conciliation. These changes would reduce the number of vexatious claims and the associated costs to business in terms of management time and lawyers' fees."

The current tribunal system had failed, he claimed. Thirty five per cent of IoD members had had a tribunal claim against them, but just nine per cent were won by the claimant. In 30 per cent of cases the employer won, while in 13 per cent the claim was withdrawn. In 40 per cent of cases the claim was settled without a tribunal ruling.

"These figures lend further support to concerns expressed repeatedly by employers that many complaints are without merit, but that very often employers will choose to settle rather than face the time, expense and stress involved in defending a claim at tribunal.

"We are pleased that the Government has recognised that there is a problem, but the system will continue to be clogged up with weak claims unless ministers take a more ambitious attitude to tribunal reform."

The IoD wants pre-claim conciliation to be compulsory unless both sides decline it; more claims rejected, and obligatory employee deposits to deter spurious claims. Mr Broad expects abolition of the Default Retirement Age will bring more claims and the Government should do more to create a system that "works for both sides."