Clause 28 - Pre-hearing reviews
Employment Bill
10:00 am
Mr Philip Hammond (Runnymede and Weybridge, Conservative)
It is right that it should be possible to strike out or otherwise deal with vexatious or trivial cases in a way that does not impose huge burdens on either the tribunal system or on a respondent who is forced to prepare a proper case against an application that may be entirely without merit. We have heard a lot during our deliberations about the growth of the compensation culture—although I do not think that anybody apart from me has used that term. The idea that whatever happens, someone is always responsible and must compensate for it lies behind many of the problems.
To many people, bringing a case before the tribunal system appears at times to be an opportunity with a potential upside, but little potential downside—a lottery ticket for anyone who feels that he has a grievance to exploit. That is not to denigrate the large number of people who have genuine cases founded on real issues that need to be dealt with, but I do not think that the Minister is trying to deal with such people. The Bill is aimed at those at the margin who are abusing the process. The proposal is sensible, but the Minister's remarks do not make clear to what extent it will be used. I should have expected there to be a significant number of cases that could be struck out.
Let me make a suggestion to the Minister. He recently raised the maximum deposit from £150 to £500—no doubt that caused consternation in certain quarters. If the only weapon is a deposit of £150, to raise it to £500 is a dramatic change in the structure of the playing field. However, if another weapon—that of striking the case out altogether, so that the applicant and the respondent have no opportunity to put their case—is available, I question whether placing a maximum limit of £500 on the deposit makes sense.
If the tribunal holds the nuclear option of striking out the case altogether, should it not have a wider range of intermediate options such as higher deposits—or even unlimited deposits, at the tribunal's discretion? In such circumstances the tribunal might think, ''We could justify striking out this case, but we will instead set a high deposit''. If a company is involved and the case appears to be 99 per cent. cut and dried but a scintilla of doubt remains, should not the tribunal have the capability to say, ''We think this case could very well be struck out, but if the respondent is prepared to put up a substantial deposit because he believes that he has a case to present, let us allow him to do so''? I understand why the increase was limited to £500 maximum when a deposit was the only remedy, but I invite the Minister to ponder whether in a world where strike-out is a remedy, a higher cap on the deposit or an unlimited deposit at the discretion of the tribunal might be a solution.