Good reasons to defend some Employment Tribunal claims

Employment Tribunal claims can create significant challenges for employers, particularly where claims involve unfair dismissal, discrimination or breach of contract. They can have financial, operational and reputational consequences, making it important to consider carefully whether a claim should be defended, settled or resolved through another route.

There are several factors employers should consider when deciding how to respond.

Your Reputation

The reputational impact of an Employment Tribunal claim will depend on the circumstances and the profile of the organisation. Although claimants may threaten adverse publicity, employers should assess how realistic that risk is rather than automatically treating it as a reason to settle.

A decision to defend a claim should similarly be based on the merits and commercial circumstances of the particular case, rather than simply a desire to demonstrate that the business will not settle claims.

Look at each claim on it’s merits

Not all Employment Tribunal claims are well-founded. Employers should consider the factual and legal basis of each claim, the evidence available and the prospects of successfully defending it.

This can also provide an opportunity to identify where workplace processes may have worked well and where improvements may be needed. Automatically settling every claim may avoid the immediate cost of litigation, but it can also mean that underlying issues remain unaddressed.

The merits of the claim should therefore be considered alongside the likely costs, risks and practical consequences of defending it.

Financial Considerations

Settling an Employment Tribunal claim involves a financial cost, which may sometimes be disproportionate to the strength of the claim. Equally, defending a claim can involve significant legal costs and management time.

The decision should therefore take account of the potential compensation, the costs of defending the claim, the strength of the evidence and the likelihood of success.

Precedent Setting

Employment Tribunal decisions are not generally binding precedents, although they can provide useful guidance on how employment law is being applied. Decisions of higher courts can establish legal principles that affect future cases.

In some circumstances, defending a claim may therefore have wider significance where an important legal issue or workplace practice is involved. This should, however, be balanced against the facts and commercial considerations of the individual case.

Alternative Dispute Resolution

Settling claims bypasses the opportunity for alternative dispute resolution methods such as mediation or conciliation. These processes often lead to mutually acceptable outcomes, allowing both parties to maintain a working relationship, learn from the experience, and implement necessary changes in the workplace.

How we can help

Whether to defend or settle an Employment Tribunal claim will depend on the circumstances of the particular case. Employers should consider the legal merits, available evidence, potential compensation, costs and wider consequences before deciding how to proceed.