Partner Article

Tribunal fees not a green light for employers to take a less cautious approach to claims

With the advent of Tribunal fees for Claimants, employers may unwittingly adopt a less cautious approach to weak claims made to the Employment Tribunal. However, they should not avoid the need for sound employment practices.

With effect from 29th July 2013 employees seeking to make a claim against their employer through the Employment Tribunal service will face substantial two stage payment fees. Initially when submitting a claim and once more if they wish their case to proceed to a hearing.

• Type A - covers most basic claims, for example; non-payment of wages or a redundancy payment. The issue fee is £160.00 plus a hearing fee of £230.00.
• Type B - is applicable to more complicated claims,for example; unfair dismissal and unlawful discrimination. The issue fee for this type of claim is £250.00 and £950.00 to go on to a hearing.

Employer fees

Tribunal fees are usually paid by employees; employers submitting a form ET3 in response to a claim do so without any cost. However, specific fees have been introduced for employers; it will cost £350.00 to submit an appeal against an Employment Tribunal decision or £600.00 for a judicial mediation in an attempt to settle a case prior to progressing to a hearing.

The annual number of claims being lodged with the Employment Tribunal service is 186,000 or more than 3,500 each week. The hope is that with the introduction of fees for claimants the Government and employers will in future, see a substantial reduction of this figure. Without doubt, some employees will be discouraged in making a claim by having to pay a fee.

However, the significance of this may not be as great as first thought. The fact is that a sizeable percentage of employees will avoid having to pay the fees themselves. The fees will be waived for those claimants who are truly unable to afford them, this will apply to claimants who either receive specific benefits or are on a low income. Public statements by the Trade Unions declaring that they will be paying for the fees on behalf of their members have added to the list, and is another factor regarding Tribunal fees. Also, many claimants may have the benefit of legal expenses insurance contained within their home contents policy which often covers legal costs.

It would be naive for employers to believe that the threat of employees submitting a claim against them has significantly diminished. Employers may take a less cautious approach to their behavious towards employees. It is absolutley crucial that employers should continue to follow sound employment practices which comply fully with their statutory and contractual obligations and the current Acas Code of Practice.

In reality, the only practical way is to avoid the need for employees to make claims to the Employment Tribunal in the first place. Employers must not take a less cautious approach in their behaviour towards employees.

The answer is quite simple; provide all workers and staff in the business with well written, up-to-date Handbooks and Statements of Particulars of Main Terms of Employment. Back this up with a cost effective service that provides professional practical employment law and people management advice and assistance, at any time, with all your legal policies and letters written for you.

This was posted in Bdaily's Members' News section by Andrew Dane .