FOR SMEs, being taken to an employment tribunal can be a devastating process financially. The number of tribunal claims has increased in recent years, with a massive 56% increase during 2008/2009.

However, this year’s statistics for employment tribunals and the appeal tribunals have just been published, and there looks to be some light at the end of the tunnel – especially for SMEs.

The figures this year appear to go against the widely held view that the number of tribunal claims is increasing and ‘clogging’ up the system.

There has been a marked decrease in the number of claims (down 8%) made over the past year.

While this could signal good news for SMEs who suffer the effects of being taken to a tribunal a lot more than larger businesses, the drop must be seen in the wider context. This year’s figures still stand at 44% higher than the number of claims in 2008/09.

While it looks as though the number of claims may be declining, it will be interesting to see what happens in the next year following the Resolving Workplace Disputes Consultation on reform to the tribunal system, and how this may affect both the system and SMEs going forward.

This year, the claims which saw the biggest increase in numbers related to the Working Time Directive (up 20%), Part-Time Workers Regulations (which almost trebled), and age discrimination (up 32%).

The average tribunal award in claims of unfair dismissal was £8,924; the average awards for discrimination (except on grounds of age) were between £8,515 (religious discrimination) and £14,137 (disability discrimination).

The average award for age discrimination was much higher than any other type of discrimination at £30,289, a warning to all SMEs in light of the removal of the compulsory retirement age.

If you would like to find out more about the tribunal process and how Dickinson Dees’ specialist SME service, Kudos, can assist you throughout, contact James Wilders, employment partner at the region’s leading law firm, Dickinson Dees at James.Wilders@dickinson-dees.com  or 0191 279 9240.