LONDON, UK - New reports indicate that increasing worker compensation claims are a growing problem for businesses in the UK, with the number of claims rising year-on-year.
Figures released by legal advisers Peninsula reveal that there were 127,600 tribunal applications last year compared with just over 105,000 in 2002. 14 years ago in 1990, the figure stood at just 44,377.
Concerns have arisen that small companies are finding it difficult to carry out the necessary administration regarding compensation claims, and there are also worries that staff are being encouraged by claims firms to file for compensation over minor issues.
According to a Peninsula survey bosses now spend an average of 9.5 hours a week dealing with HR issues, up from just three hours in 1997, and almost 80 per cent of respondents admitted that the paperwork was impacting upon productivity.
"Once again, employers considered 2003 to be the worst year on record for employment law legislation," Peninsula managing director Peter Done told Business Europe.
"This means employers have to dedicate even longer periods of time and resources to the implementation of employment regulations. Such a financial strain can only have a negative effect," he added. |
