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Following on from our article in August, which shared the announcement that the Supreme Court had ruled that Tribunal Fees were illegal, you may be left wondering what will happen next.
It's now been nearly three months since the Supreme Court ruling and we have heard informal reports from Employment Judges stating that they have seen a two - seven fold increase in claims (regional variations) since the court ruling. However, many of these newly reported claims relate to wages claims, which should not progress further.
Employment Tribunals fees refund scheme
This month, the government announced its fees refund scheme. In short, all fees will be repaid along with interest of 0.5%. Applicants should be contacted directly in due course, but can pre-register their claims.
Up to around 1,000 people will be contacted individually and given the chance to complete applications before the full scheme is opened up in the coming weeks. HM Courts & Tribunals Service are also working with trade unions who have supported large multiple claims potentially involving hundreds of claimants.
It has been widely reported in the media that this will mean that the government will have to repay up to £33m to claimants.
What could happen next?
Paul Burton, Head of our Employment Team, explains the range of possibilities:
- A new scheme enabling past claims to be resurrected? Will it be left for individuals to resurrect past claims themselves?
- Will new fees be introduced to keep claims rising again? It's unlikely that any new fee structure would be deemed lawful and not raise the same discrimination issues highlighted by the Supreme Court ruling. Therefore, we do not anticipate this happening in the near future.
- Tribunal hearings lengthened? An unintended consequence of these changes may be that Tribunal hearings are lengthened due to a lack of Judges. Due to the reduction in claims since 2013 when the fees were introduced, Judge numbers have dropped. It is highly likely that it could take up to a year for new claims to get a full hearing.
Paul comments “It seems inevitable that we will see a rise in claims from unhappy employees aiming to obtain a financial settlement from their employers. You usually have to make a claim to the tribunal within 3 months of your employment ending or the problem happening, so many potential claims over the four year period will not be able to be brought to Tribunal retrospectively, but the flood gates may now be open to people who have been put off making a claim on an ongoing, unresolved issue with their employer.”
Act now to prevent future claims
With this in mind, Paul advises all employers to take the time to look into any issues which might need attention and can be solved.
He says “We are happy to help if you need any advice with a situation to help you work out a solution. You may also want to look into insurance backed cover to deal with an employment dispute. Our Employer Protection allows us to guide you on the day to day advice and 'pastoral care' paid for by a regular retainer, then if any issues arise that qualify as potential claims, the insurance indemnity takes over paying for us to represent you and also covers any awards for compensation which are made against you.”
At Frettens, all of our solicitors offer a free initial meeting or chat on the phone to answer your questions. If this article raises issues for you or your business, please call us on 01202 499255 and Kate or Paul will be happy to discuss it with you.
