Employment tribunal fees move closer December 2011
Posted date: 15 December 2011
Plans to introduce employment tribunal fees have moved forward after Justice Minister, Jonathan Djanogly, announced a consultation to assess the idea.
The Government wants to reduce the £84 million cost to the taxpayer of running the current system, while reducing the pressure on businesses.
There have been two options put forward. The first is to introduce an initial fee of between £150–£250 for a claim to be brought, followed by an additional cost of between £250–£1,250 if it proceeds to a hearing. There would be no maximum limit on an award.
The second option is a single fee of £200–£600; however this would limit awards to £30,000. Those who wish to seek compensation above this figure can pay an extra sum of £1,750.
In both cases the tribunal would have the right to order the unsuccessful party to reimburse the fees to the other party.
Djanogly insisted that people should pay towards the cost of their case and said that waivers would be available for those on low incomes in order to protect access to justice.
“Our proposed fees will encourage businesses and workers to settle problems earlier, through non-tribunal routes like conciliation or mediation, and we want to give businesses – particularly small businesses – the confidence to create new jobs without fear of being dragged into unnecessary actions,” he said.
Geoffrey Mead, Partner at Eversheds, points out that the Government has a fine line to tread. On one side it has to make sure that there is no barrier to justice for those who have a genuine claim, but are on a low income. This is coupled with the risk that if the majority are eligible for a fee waiver because they have lost their job, then the introduction of a charge would be negligible.
“However, fees are just one aspect of the Government’s wider reform of workplace dispute resolution and it is hoped that, in the round, its action will be effective in weeding out weak and vexatious claims,” commented Mead.
The consultation is open until 6 March 2012.
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- December 2011
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