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

Author

Listed:
  • 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.

Suggested Citation

  • George Saridakis & Sukanya Sen‐Gupta & Paul Edwards & David J. Storey, 2008. "The Impact of Enterprise Size on Employment Tribunal Incidence and Outcomes: Evidence from Britain," British Journal of Industrial Relations, London School of Economics, vol. 46(3), pages 469-499, September.
    • Handle: RePEc:bla:brjirl:v:46:y:2008:i:3:p:469-499
    DOI: 10.1111/j.1467-8543.2008.00687.x
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    Cited by:

    1. Kevin Mole & Robert Baldock & David North, 2013. "Who Takes Advice? Firm Size Threshold, Competence, Concerns and Informality in a Contingency Approach," Research Papers 0009, Enterprise Research Centre.
    2. Camille Signoretto & Julie Valentin, 2019. "Individual dismissals for personal and economic reasons in French firms: One or two models?," European Journal of Law and Economics, Springer, vol. 48(2), pages 241-265, October.
    3. Paul Latreille, 2017. "The economics of employment tribunals," IZA World of Labor, Institute of Labor Economics (IZA), pages 331-331, January.
    4. André van Stel & David Storey & Chantal Hartog, 2010. "Institutions and Entrepreneurship: The Role of The Rule of Law," Scales Research Reports H201003, EIM Business and Policy Research.
    5. Oliver Mallett & Robert Wapshott, 2017. "Small business revivalism: employment relations in small and medium-sized enterprises," Work, Employment & Society, British Sociological Association, vol. 31(4), pages 721-728, August.
    6. 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 of Labor Economics (IZA).
    7. Lai, Yanqing & Saridakis, George & Blackburn, Robert & Johnstone, Stewart, 2016. "Are the HR responses of small firms different from large firms in times of recession?," Journal of Business Venturing, Elsevier, vol. 31(1), pages 113-131.
    8. Bernard Walker & R.T. Hamilton, 2015. "What influences the progression of employment rights disputes?," Industrial Relations Journal, Wiley Blackwell, vol. 46(2), pages 117-133, March.
    9. Andy Charlwood & Anna Pollert, 2014. "Informal Employment Dispute Resolution among Low-Wage Non-Union Workers: Does Managerially Initiated Workplace Voice Enhance Equity and Efficiency?," British Journal of Industrial Relations, London School of Economics, vol. 52(2), pages 359-386, June.

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