The annual reports for the Employment Appeals Tribunal and the Labour Court have been published for 2012, and they make for some interesting reading.
Employment Appeals Tribunal (EAT)
The EAT received 5,623 cases in 2012 which is, in what could be a surprise for many, a decrease by over 2,800 claims from the 8,458 received in 2011. In 2012, however, the EAT held 1,554 sittings over the 12 months and this is up from 1,509 sittings in 2011.
Not surprisingly, Unfair Dismissal accounts for over 30% of all complaints received, with Redundancy Payments accounting for over 20% and Minimum Notice and Terms of Employment accounting for 17%. This amounts to a staggering 67% of all claims falling under this top 3 category. Other notable mentions are the Organisation of Working time Act (7%) and Payment of Wages Act (14%).
The EAT in their report have also touted their efficiency in dealing with cases showing an increase of 172% in the number of cases disposed of when compared to 2007. When you compare the 2012 figure (7,624) to 2011 (6,723) you can see an increase of 13% in cases disposed of which demonstrated the EAT has sought to streamline its process in order to hear cases much quicker.
The number of cases referred in relation to Redundancy continues to decline from the high of 3,000 seen in 2009. Last year, 1,239 cases related to redundancy were referred with 1,024 being heard. Unlike Redundancy, Unfair Dismissal cases have increased by 12% on 2011.
EAT Compensatory Awards
A figure that will no doubt raise a few eyebrows concerns the near €7 million in compensation awarded (€6,981,979.49) in the 377 unfair dismissal cases heard in 2012. Just 6 cases were awarded €0 in compensation whereas 96 cases were awarded €25,000 or more, this accounts for over 1 in 4 cases. In fact 223 out of 366 cases were awarded €10,000 or more, or 60% of all awards tend to be above this mark.
The average compensation awarded for Unfair Dismissal in 2012 was €18,519.84. One would expect with the continuing improvement in the economy that this figure will reduce in the coming years as employees will hopefully obtain new employment with greater ease, thereby reducing the financial detriment that they will suffer from any purported unfair dismissal.
EAT Legal Representation
The report also looks at representation in hearings and it paints a tough picture for employers as 1,917 employees had representation at a hearing, with 397 cases involving trade unions, 1,196 legal representatives, and 324 other persons. However, only 1,116 employer parties had representation. In Unfair Dismissal cases 1,071 employees had representation as compared to 740 employers. One must wonder if this disparity in legal representation has contributed to the increase in compensatory awards.
Labour Court
The Labour Court also shows a large number of cases being heard in 2012 with 938 hearings from 1,181 referrals to the Court. However, across the board, in the Labour Court decreases can be seen in referrals made, hearings, determinations and cases settled prior to hearing as compared with 2011.
On a five year trend the report demonstrates that referrals to the Labour Court have decreased overall, with the high point being 2010 where 1,433 cases were referred. This all feeds into the reform of the Tribunal System where first instance complaints will not be heard by the Labour Court and it will be seen as the Court of Appeal.
Conclusion
Overall the figures show that there is still very much a litigation culture in existence, and with almost €7,000,000 in compensation being awarded in unfair dismissal claims alone, employers have every right to feel nervous. Employees are ever willing to lodge complaints and hire representation for a hearing, and employers need to ensure that they do not get caught unawares or ill prepared in the event that a Tribunal claim arrives in the post.
