In perhaps the biggest change to Employment Tribunal procedures since their conception in 1964 the Government will be introducing a fee structure so that it is no longer free to bring a claim or submit an appeal. The new fee structure comes into force on Monday 29th July 2013.
An “Issue Fee” will be required in relation a claim submitted to an Employment Tribunal on or after this date and then a further “Hearing Fee” will be payable before the matter is allowed to progress to a full hearing. The sanction for non-payment of issue fees and hearing fees are that the claim will not be allowed to commence or continue. Similar fees will apply to the Employment Appeal Tribunal.
The issue fee will be £250 and the hearing fee will be £950 in relation to most Tribunal claims and Tribunals will have the power to order the unsuccessful party to reimburse fees paid by the successful party. Fees will be paid online or through a centralised processing centre. Claimants will not be able to pay fees in person at individual Tribunals.
As an alternative to paying the new fees Claimants will be able to make an application for fee remission. Claimants with less than £3,000 in savings and investments and an income below a certain threshold will be exempt from paying the new fees and, depending upon their income, Claimants may be liable for a reduced fee.
With the total Tribunal fees for taking an unfair dismissal case to a final hearing being £1,200 a dismissed employee with only £3,000 in savings and no household income will from 29 July have to contribute over a third of their savings on Tribunal fees at a time when they need the money to live on. This is very likely to achieve the Government’s aim of reducing the number of claims submitted to the Tribunals however it is likely to be done at the cost of making access to justice an expensive luxury beyond the reach of many employees who have been unfairly dismissed.
Any employee who believes that they may have a valid Tribunal claim should seek legal advice in good time before 29 July 2013 when the fees regime comes into force. Employers who receive claims should also seek advice on the new tactics that are likely to come into play once fees are in force, not least because employers will have to pay fees for certain applications made after 29 July 2013 and in respect of appeals.
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