15-11-2007
Smaller firms tend to settle tribunals out of court
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Due to limited resources, smaller firms are more likely to settle employment tribunal cases before a hearing takes place, according to a spokesperson for the Federation of Small Businesses (FSB).
Matthew Knowles states that for many businesses it is more cost-effective to settle than to pay for legal advice for the tribunal process.
The FSB, which represents the interests of small firms, is also seeking a simplification of how tribunals function.
Mr Knowles argues the current system is "inflexible and complicated" and if changes were introduced "it would reduce the legal bills for smaller businesses and make sure the tribunal cases were settled fairly rather than settled before they actually get to tribunal".
The spokesperson's comments follow information from the Tribunal Service that shows the number of cases increased by 15 per cent over the course of 2006 and 2007 to stand at 132,577.
There are currently a number of business insurance providers that offer cover against tribunals.
Find a range of quotes for Employer's Liability insurance on the Simply Business website, along with further information and advice.