Compensation to increase for Jersey workers who are adversely affected by employers breaking the law

Around 200 claims are made to Jersey's Employment and Discrimination Tribunal each year. Credit: ITV Channel

Jersey's government will raise compensation caps for staff who lose out when their employers break the law.

The Jersey Employment Forum recommended the increases after an island-wide consultation earlier this year found that people felt compensation limits were inadequate.

Lawyers are now urging businesses to familiarise themselves with their legal obligations to their staff before the government enact the changes.

The Forum's chair, Carla Benest, said: "Having greater financial compensation limits adds a bit of pressure on those businesses to ensure that they are adopting the correct practices.

"It also enables individuals to bring their claims and ensure they're going to get the recompense they deserve."

What are the Forum's recommendations for employment law breaches?

Unfair Dismissal

  • Compensation would increase in line with the length of an employee's service.

  • For example, staff with more than five years of service would receive 26 weeks of pay.

  • More than ten years of service will equal 31 weeks of pay, increasing to 36 weeks for those with over 15 years.

  • Jersey's Employment and Discrimination Tribunal may also have the discretion to uplift the compensation limit by 25% if the employer's conduct is particularly bad.

Breach of Contract

  • These are cases where an employer breaches the terms of a worker's contract.

  • Previously compensation was capped at £10,000.

  • The recommendation is to triple the limit to £30,000.

Workplace Discrimination Compensation

  • Findings say the remedy for those unfairly treated based on race, gender, age, sexuality, or disability is inadequate.

  • Businesses breaching the law are currently liable for up to £10,000 in compensation.

  • The Forum recommends the cap be increased to £50,000.

  • They add that 52 weeks of pay can be chosen instead if that is a greater value.

Statutory Breaches

  • Breaches may include employers not granting parental leave, holidays, or the minimum wage.

  • The maximum compensation is for 4 weeks of pay to be granted.

  • The Forum recommends this be doubled to 8 weeks of pay.

Alongside compensation limit increases, the Forum recommends giving greater powers to Jersey's Employment and Discrimination Tribunal, which dealt with 232 claims last year.

These include the power to anonymise judgements and increase compensation limits for unfair dismissal by 25% if an employer's conduct has been particularly shocking.

Social Security Minister Deputy Lyndsay Feltham, who commissioned the review, said she will follow all recommendations outlined by the Forum and has instructed law officers to legislate accordingly.

She has also pledged to make it law for employers to provide employees with written reasons for dismissal.

"There is increasing concern that the compensation levels will hit businesses financially at a very tough time for business costs Credit: ITV Channel

Jersey Chamber of Commerce CEO, Murray Norton, has concerns that these changes would trigger an increase in the number of claims being made and put stress on local businesses.

He explained: "I think what we're likely to see is a raising of the stakes. The compensation will move up and that means we're likely to have more lawyers involved in tribunal cases and more costs.

"There are also concerns about the increasing numbers of businesses having to buy employment practices liability insurance to cover them should a claim come for such a large amount of money.

"That means there are going to be more costs for both sides; for employers and for employees and I think that's causing some concern."

The government hope to enact the changes by 2025.

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