The
Confederation of British Industry (CBI) says the study into the impact of the
compensation culture announced by the Better Regulation Task Force is ‘long
overdue’.
The
research will look at whether the threat of litigation is an effective way of
encouraging good practice or actually has a detrimental effect on
organisations.
CBI
director-general Digby Jones, blamed a ‘have-a-go mentality’ of claimants
launching dubious cases in the hope of a pay-out.
"This
creates a huge burden for companies who often find it cheaper to settle out of
court even when right is on their side," he said. "There is a fine
line between access to justice and system abuse.
"I
hope this study adds to pressure for action to ensure only genuine cases go
forward."
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Frazer
Younson, Life vice-president of the Employment Lawyers Association said the new
compensation culture meant the role of the manager was changing, with an
ever-increasing amount of time having to be dedicated to employee rights rather
than keeping an eye on the business.
