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The Impact of Enterprise Size on Employment Tribunal Incidence and Outcomes: Evidence from Britain

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Author Info

  • George Saridakis
  • Sukanya Sen-Gupta
  • Paul Edwards
  • David J. Storey

Abstract

Employment Tribunals are the formal means of adjudicating disputes over individual employment rights in the UK. This article hypothesizes that, because small firms favour informality over formality, they are more likely (i) to experience employee claims than large firms; (ii) to be subject to different types of claims; (iii) to settle prior to reaching a formal Tribunal; and (iv) to lose at a Tribunal. Data from the 2003 Survey of Employment Tribunal Applications are used to examine these hypotheses. They are generally supported, although in relation to the third there was no size effect. Furthermore, our results show that firms that have procedures and follow them are more likely to win than those firms that do not have any procedures. Recognizing the benefits of informality, while also ensuring that small firms follow proper standards of procedural fairness, is a policy dilemma that has yet to be resolved. Copyright (c) Blackwell Publishing Ltd/London School of Economics 2008.

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Bibliographic Info

Article provided by London School of Economics in its journal British Journal of Industrial Relations.

Volume (Year): 46 (2008)
Issue (Month): 3 (09)
Pages: 469-499

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Handle: RePEc:bla:brjirl:v:46:y:2008:i:3:p:469-499

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Cited by:
  1. Drinkwater, Stephen & Latreille, Paul L. & Knight, Ben, 2008. "When It's (Mostly) the Taking Part that Counts: The Post-Application Consequences of Employment Tribunal Claims," IZA Discussion Papers 3629, Institute for the Study of Labor (IZA).

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