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

31 Pages Posted: 6 Aug 2008

See all articles by George Saridakis

George Saridakis

University of Essex - Department of Economics

Sukanya Sen-Gupta

affiliation not provided to SSRN

Paul K. Edwards

University of Warwick - Warwick Business School

David J. Storey

Independent

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

Saridakis, George and Sen-Gupta, Sukanya and Edwards, Paul K. and Storey, David J., The Impact of Enterprise Size on Employment Tribunal Incidence and Outcomes: Evidence from Britain. British Journal of Industrial Relations, Vol. 46, Issue 3, pp. 469-499, September 2008, Available at SSRN: https://ssrn.com/abstract=1206057 or http://dx.doi.org/10.1111/j.1467-8543.2008.00687.x

George Saridakis (Contact Author)

University of Essex - Department of Economics ( email )

Wivenhoe Park
Colchester CO4 3SQ
United Kingdom

Sukanya Sen-Gupta

affiliation not provided to SSRN

Paul K. Edwards

University of Warwick - Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom

David J. Storey

Independent

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