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Latest News

CBI welcomes study into compensation culture

by Personnel Today 22 Jul 2003
by Personnel Today 22 Jul 2003

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.

By Michael Millar

CBI
Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

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