Companies taken to Employment Tribunals to be named

20 October 2008

A recent decision by the Information Commissioner's Office could lead to the naming of all companies taken to an Employment Tribunal.

The decision overturns the stance adopted by the Department for Business, Enterprise & Regulatory Reform (BERR) which had argued that publication of the information would leave organisations open to direct marketing, reduce the chance of informally resolving disputes and damage the reputation of firms.

Liam Kenealy, employment solicitor at Ashton Morton Slack believes that the decision could be detrimental to both the company involved and the employee bringing the claim:

"One of the factors that companies take into consideration when negotiating the settlement of a claim at the Employment Tribunal is the confidentiality that a settlement provides. If this aspect is removed then it could lead to a reduction in the number of claims that are settled before reaching the Tribunal.

A number of companies settle cases even when they have correctly complied with the procedures laid down in employment legislation as it is more cost effective to agree a settlement than to pay for legal representation and have employees taking time out to attend the hearing. If, however, they are now to have the fact that they have been taken to a tribunal made available to the general public they may prefer to pay the increased costs to protect their reputation and clear the company's name at a tribunal.

This is going to increase the costs not only for the company but also the employee bringing the claim as they may have legal representation and/or have to take time off work."

If you are thinking of making a claim to the employment tribunal or have had a claim made against you and want advice contact us on 0114 228 6235.