Employment tribunal costs introduced

The Government has confirmed that from 29th July 2013, claimants will have to pay a fee if they want to take their employer to employment tribunal. Currently, it costs nothing for a claimant to make a claim. A two stage fee will be charged. If the fee is not paid, or the claimant does not apply for ‘remission’, the claim will not be considered.

Claimants will be required to pay an initial fee (the ‘issue fee’) at the issue of a claim, and a further fee (a hearing fee) 4 – 6 weeks before the tribunal hearing.

The amount of the fee will depend on the type of claim being made. To bring a Type A claim, the claimant must pay a £160 issue fee, and then a ‘hearing fee’ of £230. Type A claims include unlawful deductions, failure to pay redundancy pay; failure to provide statement of terms and conditions; failure of employer to allow worker to take or be paid for annual leave etc.

To bring a Type B claim, the issue fee is £250 and the hearing fee is £950. Type B claims include unfair dismissal, discrimination, failure to comply with rest break rules, failure to allow certain types of time off etc.
 
The Employment Tribunal is under a new duty to encourage the parties to use alternative dispute resolution e.g. the services of ACAS or judicial or other mediation services and to specifically consider this matter at preliminary hearings.

The tribunal will have the power to order that fees paid by the successful party be reimbursed by the unsuccessful party, though this will not be an automatic occurrence.

A remission system will be in place for those who cannot afford to pay the fees, and upon evidence of this, either the whole or part of the fee will be waived.

Penninsula Business Sevices Ltd