The government is considering capping awards for discrimination as part of a drive to reduce red tape. The review is part of employment regulation review proposals that “will boost jobs in the private sector”, by making it easier for businesses to be more “flexible” and aiding “job creation”. Currently awards for proven
discrimination are unlimited. Employers argue that they are forced to
settle of out of court because of the unforeseen costs regardless of cases
being weak or strong. They say the current system proves as an
incentive for bringing weak claims forward. However the Trade Union
Congress (TUC) argue that employer claims about myriad vexatious claims
are the equivalent of an urban myth, the TUC also point out that high
payouts are only awarded in severe cases.
Most employment lawyers will tell you
that taking a discrimination case is not easy, firstly no employer is
going to admit discrimination, and witnesses are often reluctant to come
forward. Then there is an indefinite period of being out of work, which
can be up to two years before a case is heard. If you are on a low income
you will also have to consider that you will not get legal aid for
representation for your eventual tribunal hearing. Can employers
really argue most discrimination claimants are opportunists?
Leading family charity Working Families
argue they are most certainly not. The charity operates a helpline for
parents who fear they may be victims of discrimination. Last year Working
Families helped over 200 parents with cases which raised discrimination
issues (12% of their helpline callers). The charity claims that during the
recession, employers appear to be flouting the law more blatantly. For
example: one caller was told she could not return to the same hours of
work after maternity leave: her employer told her that, as she had been on
leave, she had “drawn the short straw” and had to do the shifts that no
one else wanted.
Sarah Jackson, Chief Executive of Working
Families argues discrimination pay outs should remain unlimited,
considering the loss of earnings and potential earnings that result from
the complete breakdown of an employment relationship. She comments:-
“The Government admits that the high cost
of compensation in discrimination cases is a concern for employers – so it
should be. If we are serious about tackling discrimination at work – which
continues to be an issue for many callers to Working Families helpline –
then the sanctions need to be severe.”
Equality Practitioners have argued for
years that the most effective means of avoiding tribunal payouts are good
equality policies. Many practitioners have sold their services and skills
on the basis of equipping businesses with a good equality and diversity
framework to avoid such penalties whilst gaining the added benefit of
getting more from their workforces. The work of Equality Practitioners has
always made business sense when compared to the cost of getting it wrong.
If the ultimate deterrent is removed, what incentives remain for
businesses to treat individuals
equally? |
Albert Rose
Equalities Manager
Stewart
House
Tel
: +44
(0)20 7862 8633
Fax: +44 (0)20 7866
3284
Email: [log in to unmask]
website:
http://www.londondeanery.ac.uk