New Law Commission report calls for employment tribunals overhaul

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A series of recommendations to bolster the powers of employment tribunals have been unveiled in a new Law Commission report. A key focus of ‘Employment Law Hearing Structures’ was the current restrictions on the employment tribunal’s existing jurisdiction.

The report examined the jurisdictions of the employment tribunal, EAT and civil Courts in employment and discrimination matters. It also scrutinised specific issues raised by the civil courts and tribunals sharing jurisdiction on matters such as equal pay and exclusive County Court jurisdiction on certain discrimination claims.

Following a four-month consultation process which concluded in January 2019 and took soundings from across the legal sector, the report incorporates the views expressed on how the employment tribunal process can be enhanced.

Whilst these are only recommendations and therefore not binding, they will require a Government response. Following previous Law Commission reports, the majority of its recommendations for legal reform have been implemented.

These are the main proposals that will be under consideration:

  • Extending the jurisdiction of employment tribunals to include breach of contract claims that arise during employment. Currently, claims of this nature can only be heard by tribunals following the termination of employment
  • Increasing the time limit for bringing all employment tribunal claims to six months
  • Allowing tribunals to extend time limits where it is ‘just and equitable’ to do so. Currently, the time limits can only be extended where it was ‘not reasonably practicable’ for the claimant to comply with the original limit.
  • Empowering employment tribunals to award damages in breach of contract claims up to £100,000 (the current limit is £25,000). The intention of this measure is to reduce the need to pursue claims in two different forums.
  • Allowing tribunals to hear complaints of breaches of working time limits
  • Improving procedures to enforce tribunal awards effectively and ensure compensation is received in a timely fashion

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