Employment Law Update July 2013

The Introduction of fees for tribunal claims - 29 July 2013

From 29th July claimants issuing a claim against their employer in the employment tribunal will be required to pay a fee made up of an initial fee to issue a claim and a further fee where the claim goes to a hearing. The tribunal may order the fees to be repaid to the claimant where the claim is successful. 
There are two levels of claim depending on how complex the case is.

Level 1 claims - The issue fee is £160 and the hearing fee is £230. 
Level 2 claims - The issue fee is £250 and the hearing fee is £950. 

Level 2 claims are those that are viewed as being more complex and likely to take longer time to determine, for example, discrimination, equal pay and unfair dismissal. Level 1 claims include unlawful deduction from wages, holiday pay, and redundancy payment claims. 

Fees are also payable for appeals submitted to the Employment Appeal Tribunal.  Claims submitted to the EAT will have an issue fee of £400 and a hearing fee of £1,200 regardless of the type of claim or number of claimants. 

The Governments main aims in introducing this requirement are to ensure that people using employment tribunals contribute to the cost of running the system where they can afford to do so, rather than the full cost being met by the taxpayer, as well as to encourage people to look for alternatives, such as mediation, before going to tribunal. 

The remission system used in the civil courts where fees can be waived if the party cannot afford to pay, will be extended to employment tribunals and the EAT. 

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