Tribunal fees possible by 2013
Employment Law & HR update 14/12/2011
A system of fees for employment tribunal claimants could be
introduced as soon as 2013, according to a consultation paper
published today.
Under the proposals, claimants could face fees totalling as much
as £1,750 for making a claim that results in an employment tribunal
hearing. But in cases where the employer is found to be at fault,
the employer would be ordered to pay this cost, along with any
compensation awarded, back to the claimant, adding to employers’
costs of defending claims.
Why are fees being proposed?
A central aim is to reduce the burden of running the employment
tribunals service. According to the consultation paper, this costs
the taxpayer £84 million each year. Fees will make a contribution
towards those costs, as well as discouraging spurious claims.
It also aims to encourage parties to resolve disputes by other
means, including using ACAS, mediation or conciliation.
What fees are proposed?
Two alternatives are proposed:
Option 1 is for a two-stage fee structure, with
the claimant paying a fee for making the claim followed by a
further fee if a full tribunal hearing is required.
- Upfront fees under Option 1 range from £150 for a breach of
contract claim, £200 for an unfair dismissal claim, up to £250 for
a discrimination claim.
- Tribunal Hearing fees under Option 1 range from £250 for a
breach of contract claim, £1,000 for an unfair dismissal claim, to
£1,250 for a discrimination claim.
Option 1 could be introduced by 2013.
Option 2 is for all fees to be paid up-front,
by the claimant, on making the claim. This would result in a higher
up-front fee, but a lower overall fee for those cases that proceed
to a hearing.
- Upfront fees under Option 2 range from £200 for a breach of
contract claim; £500 for an unfair dismissal claim; £600 for a
discrimination claim, with a top-level fee of £1750 for a claim
where more than £30,000 compensation is sought, which might be the
case in many discrimination claims.
Option 2 would require a change in the law, and so might not be
implemented until 2014.
What if a claimant makes several different
claims?
The claimant will only pay one fee, but this will be for the
highest level of claim. For example, a claimant claiming both
unfair dismissal and sex discrimination would only pay the fee for
a sex discrimination claim, which is £250 under Option 1.
It is doubtful that this would significantly discourage multiple
claims, as the fee difference between a straightforward unfair
dismissal claim and a claim for both unfair dismissal and some form
of discrimination would only be £50 under Option 1, and £100 under
Option 2.
What about claimants on benefits?
The proposals will allow claimants who are on income-related
benefits to be exempt from paying the fees.
In addition, no fees would be payable for a single claimant with
an income below £13,000 or a claimant with a spouse or partner
whose family income is below £18,000. Even higher earnings are
permitted if there are children in the family.
According to the consultation paper, 27% of current claimants
would pay no fee under the proposals.
If you would like further information, and
already subscribe to
NatWest
Mentor, please call
the Advice
Service. If you would like more information on
how Mentor could help your business in situations like this and
many others, contact
us today for
information.
Next story - New employment ruling could
affect administrators
Previous story - HSE levies fines upon
two Ely firms following work accident