Changes to employment tribunal system
Tuesday 4th October 2011
The Chancellor, George Osborne, has announced two important changes to the Employment Tribunal system, which are intended primarily to reduce the number of employment tribunal claims and boost the economy.
First, the qualifying period for most types of unfair dismissal claim will be increased from one year to two years, with effect from 1 April 2012. This represents a return to the position in the early 1990s, when the law changed as a result of fears that the longer qualification period was indirectly discriminatory against women.
Second, it seems that the Government plans to introduce fees for Unfair Dismissal claims, including an issue fee of £250,and a further fee of £1,000 (also payable by Claimant) when the case is listed for a hearing, with all fees being reimbursed if the Claimant wins.
It seems as if the fees will be waived for Claimants with limited resources.
We anticipate that most employers will support these changes, as they will inevitably mean that fewer claims will be issued. Employers should be aware however that if a dispute is settled after a Tribunal claim has been issued, Claimants' representatives will also be looking for the fees to be reimbursed as part of the settlement arrangements.
For further information, please contact Stephen Moore, Head of the Employment Team at Ashfords, on 0117 321 8065 or s.moore@ashfords.co.uk
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