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Sharp rise in employment tribunal claims

July 10, 2018

There has been a significant increase in the number of employment tribunal claims in the first quarter of this year compared to last year. The Ministry of Justice released the latest statistics which shows the number of claim submissions increased by 118% from January 2018 to March 2018 compared to the same period last year. In July 2017 the associated fees for employees were abolished, as the ruling found that the introduction of fees by the government was unlawful under both UK and EU law.

This surge in the number of tribunal claims has led to a huge backlog in the courts, with 54 new judges being announced to process the claims for 2019. With over 100,000 claims to process, the highest number since 2013, they have their work cut out.

Employers and organisations

Organisations should take reasonable steps to ensure fair and open processes and policies are in place throughout the business, otherwise they could face large fines and the associated legal costs.

Employers should also take legal advice sooner rather than later when faced with a contentious employment issue, to reduce the risk of claims as far as possible.

With the abolished fees employees may feel emboldened to take their employer to a tribunal, and with their increased bargaining position they are less likely to settle at an earlier stage or settle for a low value. This could impact on the offers made under settlement agreements and during the Early Conciliation (EC) process.

The EC process is mandatory for all claims, employees must contact Acas and submit an EC form online. Acas will provide conciliation to try and reach a settlement between the employer and employee. If a settlement isn’t reached, then Acas issues an EC certificate so that the employee can proceed with an employment tribunal claim.

Process of reimbursement

Parties who paid Employment Tribunal fees between 29 July 2013 and 26 July 2017 are entitled to be reimbursed. Full details of the reimbursement scheme can be found on the government website.

Employers who paid a fee will need to complete a form and submit this to HM Courts and Tribunal Service via the online service or postal service.

Protecting your organisation and employees

Your organisation should be ensuring that working decisions and practices are consistent and fair, so that employees do not have need to raise a complaint. However, if a complaint is made do you have clear procedures in place to deal with the matter swiftly?

If an employee has been dismissed in the last three months or you have an ongoing disciplinary or grievance make sure your employment documentation and staff contracts are up-to-date. Always get the right support and guidance to protect your business.

Related blog: UK employment tribunal fees