THE IMPACT ON EMPLOYERS REGARDING EMPLOYMENT TRIBUNAL FEES ENDING.

17 August 2018

Employment Tribunal Fees

The impact on employers regarding Employment Tribunal fees ending.

As of July 26th 2017, the Supreme Court ruled Employment Tribunal fees as unlawful, but what does this mean for employers?

The ruling has visibly increased the amount of Employment Tribunal cases, with the Ministry of Justice publishing Tribunal statistics from October to December 2017 showing a 90% increase in the number of single employment tribunal claims.

Employers should understand that it is now more likely that an employee will make an Employment Tribunal claim if they have been dismissed. As long as they have two years of continuous service in the organisation. They are more likely to do so, as they do not have to pay any fees out for the claim.

When Employment Tribunal Fees were in place, employers could afford to tests the waters before discussing any sort of settlement agreement, as occasionally the claimant would decide not to pay the fee. Whereas, now employers must agree settlement as soon as possible.

This change in law was a huge victory for Unison, and was widely published, therefore there is a possible chance that membership to unions could increase, which again could lead to increased Tribunal claims.

In order to avoid facing an Employment Tribunal claims employers should:

  • Update and improve policies and practices ensuring that they are legally compliant, especially discipline and grievance procedures, as well as equality and diversity policies.
  • Increased training for staff who could potentially deal with Employment Tribunal claims.
  • Obtain advice in preventing Employment Tribunal claims from us here at Three Graces Legal.

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