Settling employment disputes often boils down to ‘who blinks first’. A claim is issued and both parties put their respective positions on the record. But often, the factors that may prompt a settlement aren’t at all obvious. For the employer – there are commercial sensitivities and the risk of adverse publicity. Similarly, the employee has to balance ‘having their day in court’ against the settlement sums on offer and (usually non-recoverable) costs of litigation.
To settle, or not to settle…That is the question
Sometimes the settlement ‘dance’ is done and dusted quickly. Both parties size each other up and come to terms. However, many cases get tantalisingly close to the hearing before terms are agreed. A case in point is the recent discrimination case brought by four female news presenters against the BBC. The case was settled just a week before the hearing was due to begin.
The BBC accused of discrimination
In this case, four female newsreaders alleged that they had been discriminated against in a restructuring and recruitment process for lead presenters at BBC News.
One newspaper quoted an insider who made it clear that there was more than legal risk for the BBC. “There were witness statements ready and senior news managers would have had to account for their actions.” Without a settlement, “There would have been claim and counter-claim between the BBC and the women in public. Then viewers would see the newsreaders back on screens. It would have been very damaging, so the settlement is better for all.”
The BBC said it hadn’t accepted any liability over the claims made by the women in settling case. However, it’s understood that the agreement includes an undisclosed payment to the presenters.
This case is a reminder of the different considerations at play when settling tribunal claims. It does not start and end with an exposition of the legal risks. It involves many other nuanced concepts including commercial sensitivity, preserving ongoing relationships, cost (the BBC case was listed for three weeks in the tribunal) and the potential for reputational damage.
Whenever a claim is received from an employee, the employer should take a view on each of these factors when deciding on a strategy for defending the claim.
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