The Government has announced the level of proposed charges for employees raising employment tribunal claims to be introduced from summer 2013.
Claimants raising a breach of contract claim, unlawful deduction from wages claim, failure to pay a redundancy payment or failure by an employer to pay for or allow an employee to take annual leave will be required to pay an initial fee of £160 and a further £230 hearing fee, (a total of £390), if the case is not resolved and a tribunal hearing is required. These will be known as level 1 fees. They include a number of other types of claim which are considered to be less complex.
Level 2 claims which cover unfair dismissal, dismissal or detriment for whistle blowing, equal pay, and HR claims (and many more) will incur an initial fee of £250 and a hearing fee of £950, a total of £1,200.
Respondents raising a counter claim will also require to pay fees. Claimants on low incomes will not be required to pay these fees.
The fees will, in the main, be paid by claimants raising the employment tribunal claims. However the tribunal will have the discretionary power to order the unsuccessful party to reimburse the fees of the successful party on the basis it ensures that the party who ultimately causes the employment tribunal to be used bears the cost.
The aim of the fees is to encourage businesses and workers to settle disputes rather than go to full tribunal hearings and to transfer a proportion of the £84 million cost of running the system to the users of the system.
The Government is proposing to review the fee structure once implemented.
If you want to discuss the proposed fee structure or any other matter, contact your legal manager.