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The introduction of fees in the Employment Tribunal

The introduction of fees in the Employment Tribunal

Posted on 19/03/2013 by Phil Hall

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We reported in our previous “Tribunal Rules” bulletin back in February, that the Ministry of Justice were consulting on the introduction of fees in the Tribunal. The Ministry of Justice has now published its response to this consultation and a summary of the fee charging structure to be brought in from Summer 2013 is set out below.

Issue fees Claimants will pay an issue fee when bringing a claim, which varies depending on the nature of the claim.

• Level 1 claims (i.e. the straightforward claims such as unlawful deduction from wages, breach of contract, failure to pay a redundancy payment , failure to provide written statement of terms and conditions etc.) will incur a £160 fee

• Level 2 claims (all other claims, such as unfair dismissal, discrimination, whistleblowing, equal pay etc.) will incur a £250 fee Hearing fees Claimants will pay a hearing fee: • Level 1 claims £230

• Level 2 claims £950 Multiple claims In multiple claims the fee will vary depending on the level of fee and number of people bringing the claim Employment Appeal Tribunal (EAT) fees If a party wish to appeal a point of law to the Employment Appeal Tribunal the fees (irrespective of the level of claim) will be:

• £400 appeal fee • £1200 hearing fee Additional fees

• Review of default judgement – £100

• Application to dismiss following settlement £60

• Counter claim (for level 1 claims only) £160

• Mediation by the judiciary (level 2 claims only) £600

• Application for review £100 (level 1) and £350 (level 2) Means testing/low income claimants

The remission system currently used in Her Majesty’s Courts and Tribunal Service (HMCTS) will be available for those who need access to Tribunals but cannot afford to pay the fee Fee reimbursement The Tribunal will have the power to order the unsuccessful party to reimburse the fees paid by the successful party so that the cost is ultimately bourn by the person who caused the system to be used. The introduction of fees will certainly dissuade Claimants from issuing speculative applications to the Employment Tribunal but it is questionable whether the introduction of fees will have will have any real impact in reducing the number of claims brought by individuals, given that most claimants will have lost their job and are likely to be in receipt of state benefits or have a greatly reduced disposable income. Most claimants are therefore likely to benefit from a full or at least partial remission under the current HMCTS remission system.

For further information about the above or if you have any questions generally about the introduction of tribunal fees please do not hesitate to get in contact with Simon Whitehead, a partner in the employment department at EOS LAW LLP on 0161 300 1065 or by email at simon.whitehead@eoslaw.co.uk