Jersey Chamber of Commerce has analysed the results of a 24-hour survey, in which 150 local businesses shared their views on the proposed changes to Jersey’s employment and discrimination laws.
The States Assembly is due to debate the Draft Employment and Discrimination Amendment Law this week and if the changes are approved, Jersey’s Chamber of Commerce reports that employers fear a spiralling of costs as the potential number of claims increases.
The findings reveal widespread concern about the financial and operational impact on employers, particularly small and medium-sized enterprises.
Key Survey Findings:
- Employer rights concerns: An overwhelming majority (93%) believe that the Tribunal should have the power to award costs to employers in appropriate cases, for example where claims are vexatious, malicious or without merit. Many businesses expressed frustration over the financial and emotional toll of defending against such claims.
- Strong opposition to compensation increases: A significant majority (72%) do not support raising the maximum discrimination claim compensation from £10,000 to £50,000 (or 52 weeks’ pay, whichever is greater), fearing it could expose them to unsustainable financial risks in increased insurance premiums and/or professional advice, deterring investment in workforce expansion.
- Rising costs and legal burdens: Over half (54%) of respondents anticipate increased expenditure on training, legal advice, and defending claims. Notably, 37.8% of businesses that have defended claims incurred costs exceeding £10,000, illustrating the substantial financial impact.
- Greater risk of opportunistic claims: A majority (60%) of employers worry that the changes may encourage opportunistic claims, making them more hesitant to hire. This caution could inadvertently stifle diversity and inclusion efforts.
- Insufficient employer response time: 56% of respondents feel that increasing the employer response timeframe from 21 to 28 days is still inadequate, given the complexity of gathering evidence and preparing a robust defence within the allowed period.
- Broader implications: With Jersey operating at near-full employment, the findings highlight concerns that the proposed changes could have unintended consequences. Employers warn that the increased legal and financial pressures might discourage hiring and business growth, encourage an environment ripe for vexatious claims, and create uncertainty that could push businesses to consider relocating off-island.
A spokesperson from the Chamber said: “The Chamber is urging policymakers to consider these comments and ensure that any changes support both employees and the long-term sustainability of Jersey’s business community in a more balanced approach. It is with some surprise that we see huge enhancements of the possible awards for employees, but no protection for businesses enduring spurious claims and counting the costs in dealing with them being included in this proposal. These impacts apply across all sectors and all sizes of business, as well as the charitable sector.”
