Employment tribunal changes have come into effect intended to
make it easier for businesses to take on staff and improve the
process when staff have to be let go.
There were 218,000 tribunal claims in 2010/11, a rise of 44
percent since 2008/09, with each business spending nearly
£4,000 per claim on average defending itself.
The changes, which came into effect on 6th April, are part of a
radical reform package that the government says will ultimately
deliver direct net savings to UK business of more than £10
million a year with wider benefits to employers estimated at more
than £40 million a year.
Among the changes are raising the qualifying period for claiming
unfair dismissal from one to two years and increasing the maximum
level for costs awarded to businesses winning a vexatious
tribunal claim from £10,000 to £20,000. Deposit orders
required by claimants when a judge determines that a part of
claim is unmerited will increase from £500 to
£1,000.
Also from Friday, the average value of awards and time taken to
reach a hearing will be included in the guidance for tribunal
application and response forms, providing all parties with a
greater understanding about what to expect from the tribunal
process before they enter the system. The government is also
considering whether companies with fewer than 10 employees should
be exempt from the tribunals process.
Further changes are in the pipeline. Late last year, the
government announced it was planning to introduce fees for taking
claims to employment tribunals and employment appeals tribunals,
a practice that the Law Society describes as “creating a
barrier to justice”.
It is understood that there would be a refund for those who win
their case under the changes and that the low-paid, or those
without an income, may also have the fee waived or reduced.
However, Law Society president John Wotton warned that the scheme
will undermine access to justice. “Many people who have
just lost their job and are facing financial uncertainty will be
unable to pay fees of between £150 and £1,250. The
inevitable effect of introducing fees will be to deny such people
the right to have their case heard in a tribunal. Access to
justice in employment matters will be confined to those with the
means to afford these fees.”
The government is currently consulting on its intention to
introduce fee-charging.
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