A recent case heard by the Employment Appeal Tribunal [EAT] has confirmed how vulnerable small businesses are to Employment Tribunal claims. Although employment law makes it quite clear that any discrimination claim, constructive dismissal or unfair dismissal compensation [or in fact any type of employment tribunal award] paid to a successful employee should be “just and equitable in all the circumstances having regard to the loss sustained by the complainant”, the EAT has confirmed that a tribunal simply cannot look at the effect of any such compensation payment on the employer – even if the award will have a disastrous effect on that business – even leading to bankruptcy. This seems to confirm that whilst it’s critical for businesses to be very careful when dealing with any potential employment tribunal claim, small businesses are particularly vulnerable.
The moral here is simple – when dealing with employment law – don’t take any chances. When it comes to dismissing an employee, make sure you know absolutely what you’re doing and how to do it – if there’s any doubt in your mind, make sure you talk to one of our employment law solicitors first.