Call us on:  0808 172 93 22

Surge in Claims for Unfair Dismissal?

9522876_sSUMMARY: Statistics recently compiled suggest that claims for unfair dismissal have soared by 44% over a three month period as employees rush to file their claims ahead of new rules coming into force this summer.

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CHANGES:

Fees

Currently, an employee can submit a claim to an Employment Tribunal for free.

However, a new fee system is to be introduced in the Employment Tribunal this summer meaning potential Claimants will now have to pay to make a claim. A specific date for implementation of the new fee system has not yet been finalised.

Fees payable under the new system will depend on the type of claim being brought by the employee. The types of claim have been categorised into:

An initial fee will be payable to make a claim and then a further fee will be payable if the case goes to a full hearing.

The fee structure is set out below:

LEVEL 1 CLAIM LEVEL 2 CLAIM

ISSUE FEE

£160

£250

HEARING FEE

£230

£950

(*Where there are multiple claimants the fees will differ to those set out above).

Compensation

In addition to the new few structure, the Enterprise and Regulatory Reform Bill will also place a cap on the amount of compensation an employee can claim which will be capped at 12 months’ salary or £74,200 whichever is lower.

There is also scope within the Bill for this cap to be reduced further.

IMPACT ON CLAIMS:

The government has already put measures in place to reduce the amount of vexatious unfair dismissal claims by extending the qualifying period which permits an employee to bring a claim from one year to two years continuous employment with their employer. This change came into effect on 6 April 2012.

It is hoped the introduction of a fee structure and changes to compensation will also help to reduce the amount of spurious claims made by employees in the future and will in turn ease the pressure on an already strained Tribunal System. However, the proposed changes seem to currently have had the opposite effect with claims increasing dramatically in anticipation of the changes being implemented!

Joanne Duck, Legal Assistant

CONTACT INFORMATION

fgmedia@floydgraham.co.uk

+44 (0) 1604 871143

This update is for general guidance only and does not constitute definitive advice.

Updated: by FG Solicitors
Call us on:  0808 172 93 22

SURGE IN CLAIMS FOR UNFAIR DISMISSAL?

9522876_sSUMMARY: Statistics recently compiled suggest that claims for unfair dismissal have soared by 44% over a three month period as employees rush to file their claims ahead of new rules coming into force this summer.

-

-

.

CHANGES:

Fees

Currently, an employee can submit a claim to an Employment Tribunal for free.

However, a new fee system is to be introduced in the Employment Tribunal this summer meaning potential Claimants will now have to pay to make a claim. A specific date for implementation of the new fee system has not yet been finalised.

Fees payable under the new system will depend on the type of claim being brought by the employee. The types of claim have been categorised into:

  • LEVEL 1 CLAIMS – lower value claims i.e. claims for sums due on termination of employment such as unpaid wages, redundancy payments and payments in lieu of notice; and
  • LEVEL 2 CLAIMS – all other claims i.e. claims for unfair dismissal, discrimination, equal pay and whistleblowing.

An initial fee will be payable to make a claim and then a further fee will be payable if the case goes to a full hearing.

The fee structure is set out below:

LEVEL 1 CLAIM LEVEL 2 CLAIM

ISSUE FEE

£160

£250

HEARING FEE

£230

£950

(*Where there are multiple claimants the fees will differ to those set out above).

Compensation

In addition to the new few structure, the Enterprise and Regulatory Reform Bill will also place a cap on the amount of compensation an employee can claim which will be capped at 12 months’ salary or £74,200 whichever is lower.

There is also scope within the Bill for this cap to be reduced further.

IMPACT ON CLAIMS:

The government has already put measures in place to reduce the amount of vexatious unfair dismissal claims by extending the qualifying period which permits an employee to bring a claim from one year to two years continuous employment with their employer. This change came into effect on 6 April 2012.

It is hoped the introduction of a fee structure and changes to compensation will also help to reduce the amount of spurious claims made by employees in the future and will in turn ease the pressure on an already strained Tribunal System. However, the proposed changes seem to currently have had the opposite effect with claims increasing dramatically in anticipation of the changes being implemented!

Joanne Duck, Legal Assistant

CONTACT INFORMATION

fgmedia@floydgraham.co.uk

+44 (0) 1604 871143

This update is for general guidance only and does not constitute definitive advice.