As you may or may not be aware, on 29th July 2013 we saw the
introduction of employment tribunal fees for the first time in the UK. The fees introduced by the coalition
government aim to pay for some of the £74 million that it costs to run the
service each year. The ministry of
justice argue that this cost should not be the responsibility of the UK tax
payer, as it has been in the past.
Although the fees are subject to different challenges that are due to
be heard at the end of September and late October the fee system is up and
running. There is a chance that
individuals who pay the fees will get their money back, should the challenges
be upheld.
The new fee system places a claim in one of two
categories. Type A is for the more
straightforward cases such as notice pay or holiday entitlement. The cases that fall under Type B are deemed
to be more serious, for example discrimination or unfair dismissal. The fee
payable will depend on which type of claim is to be made. A claimant will not
only have to pay to issue the claim but also a hearing fee will be applicable
should the case be taken to court.
See the table below for the cost of the new fees:
Fee Type
|
Type A Claims
|
Type B Claims
|
Issue Fee |
£160
|
£250
|
Hearing Fee
|
£230
|
£950
|
The build up to the
introduction of the fee system saw an increase of 10% in employment tribunal
claims being made, from April to June 2013, compared to the previous year. Only time will tell how the new fees impact on
the levels of claims made, but early indications show that we expect to see a
substantial drop between July – September this year. We will keep you posted when the figures are
in.
So what’s next?
From 1st April 2014 a new
step will be introduced in the process of making an Employment Tribunal claim. Anyone who wishes to make a claim will need to
contact ACAS first, regardless of the type of claim. ACAS will require any claimant to complete an
‘Early Conciliation’ form, in which they will list basic details about
themselves and their employer. The form
will not require them to list details about the dispute; however ACAS will make
contact with them to offer conciliation services. If the claimant accepts, ACAS will have one
calendar month to negotiate a settlement.
Only if early conciliation is refused or fails during the time period,
will the claimant be able to submit the claim to the Employment Tribunal.
What does this mean for employers?
The aim of early conciliation along with the introduction of tribunal
fees is to reduce the number of cases that make it to the Employment Tribunal. Previously employers have only been notified
of a claim when they receive the letter informing them of the details. The hope of the new system is that, employers
will have the opportunity to resolve matters without the need for a tribunal
hearing, saving them time and money. Employers who are involved in a dispute with
an employee will often sit tight and wait to see if a claim comes in. However under the new system it will be
important that employers take a view on the situation much earlier, as to
whether they are prepared to negotiate a solution outside of a tribunal
hearing. Early conciliators are aiming
to make contact with both the claimant and employer within one day of a claim
being submitted, so be prepared as if this is the case, we can expect things to
happen quickly!
If you require any further information on Employment Tribunal Fees,
please do not hesitate to contact a member of the Tamar HR team.
