Friday, 13 July 2012

Employment Tribunal fees- update

The Ministry of Justice has reported on the outcome of a consultation on the introduction of employment tribunal fees. The stance that's been adopted states that the aim of bringing in fees is to please the taxpayer by cutting the costs of the current tribunal system to the taxpayer.

Fees may be implemented as soon as summer next year.

Here's a summary.

'Level 1' claims ('simple' claims including the likes of unlawful deductions from wages) will atract a £160.00 issue of claim fee and a hearing fee of £230.00

'Level 2' claims (less straightforward claims) will attract a £250.00 issue of claim fee and a hearing fee of £950.00

An Employment Appeal Tribunal will cost the claimant £400.00 to log, and a
£1,200.00 fee for the hearing itself.

The release sets out various other charges such as a fee of £600.00 for judicial mediation.
It is obvious (and the report does acknowledge) that these fees do not cover the costs of running our tribunal system. It also gives an undertaking that the fees will be regularly reviewed, and changes made swiftly should problems present themselves.

Whether the decision to levy fees will prove to cut the number of claims filed annually (whether vexatious or not) remains to be seen, but we must be cautious that an inability to pay does not prevent the less-fortunate claimants from pursuing claims against unscrupulous employers too.

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