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UK employment tribunal fees – update for employers

Updated August 12, 2017

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At the end of July, the Supreme Court ruled that the government was acting unlawfully and unconstitutionally when it introduced fees in 2013 for those bringing employment tribunal claims.

The fees started at £160 and went up to £1,200, they were introduced to cut the number of malicious and weaker cases being made. A government report found that there was a 70 per cent drop in claims after the fees were introduced.

Unison, the UK’s largest union has fought for four years to overturn the government’s introduction of fees, saying the fees discriminated against workers. The fees ceased to be payable as of Wednesday 26 July 2017 with the Ministry of Justice saying that the government will refund those who have paid fees, which is estimated to be up to £32 million.

Reimbursement

The practicalities of how people will be reimbursed is still unclear, as are how claims that were not brought about during this period due to the fees being too high. In terms of providing workers access to justice this ruling is good news.

What does this mean for employers?

With this ruling, it may result in increased employee litigation for employers. As an employer, it is important that you follow and keep yourself updated with employment law and any resulting changes in the law from this ruling.

How recently have you reviewed and updated your HR policies and have these been clearly communicated to your employees? It could be an ideal time if you haven’t done this recently to do so now.

It is always good practice to document an employee’s employment history throughout their career. Keeping good records and documenting their performance, and any concerns or issues that have been raised, will provide you with a clear time line and evidence of how you have managed the process. It should support any management decisions and any action taken against an employee. This will help to protect you and your business should you be faced with an employment tribunal.

The Supreme Court recognised that the fees can play an important role, but believes that the right balance had not been struck. Over the coming weeks we will update you on any developments.

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