We answer questions about the announced reforms of the unfair dismissal process and the proposed introduction of fees for bringing Employment Tribunal claims
Monday 10 October, 2011
On 3 October 2011 the Government confirmed that it will be increasing the qualifying period for claiming unfair dismissal from one to two years and introducing fees for bringing employment Tribunal claims. Here are some of the questions we have been asked about the changes:
Why change the qualifying period?
The stated aim of the change is to encourage employers to take on new employees. There were 47,900 unfair dismissal claims in the UK in 2010-11 and the Government estimates that this will drop by about 2,000 a year.
When will the changes take place?
The change to the qualifying period will take effect on 6 April 2012. No information has been given about transitional arrangements for existing employees.
What will be the likely impact of the changes?
Some have predicted that the change may have the effect of encouraging more discrimination and whistleblowing claims for which there is no qualifying period.
What is the new fee structure for bringing tribunal claims?
The Chancellor’s speech on 3 October made a commitment to introduce a fee for taking a case to a tribunal that litigants only get back if they win. There are currently no official details of how this will work and it seems that a consultation will be launched later in the autumn.
When will the change take place?
Some media reports have projected an implementation date of April 2013. However, no date has been confirmed.
How much will the fees be?
There have been media reports that the fee for issuing a tribunal claim will be £250, with a further fee of £1,000 payable by the claimant when the hearing is listed (higher fees will apply if the claim exceeds £30,000). No source has been given for these figures and we will have to wait for the Government’s consultation to see if they are accurate.
What will be the likely impact of the changes?
There has been some opposition to the proposal, mostly on the basis that fees are likely to deter genuine claims as well as spurious and weak ones. Others have suggested it will merely increase the cost of settling cases, with Claimants expecting to get back any fee from their employer.
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