Announcement on Unfair Dismissal and Tribunal Fees

Date Added: 07 October 2011

In January 2011 the Government launched a consultation on wide ranging reforms to the Employment Tribunal System.  Two of the headline proposals were to raise the qualifying period for unfair dismissal from one year to two, and to charge fees to anyone wishing to bring an employment tribunal claim.

On 3^rd October 2011 the Chancellor, George Osborne, delivered a speech to the Conservative Party Conference in which he stated that the unfair dismissal qualifying period would rise to two years and that fees will, indeed, be introduced from employment tribunal claims.

The change to unfair dismissal law is likely to take effect on 6^th April 2012.  No further detail has been given and it is not clear whether there will be transitional provisions to protect those who may already have achieved one, but not yet two years’ service by that time.  The Government believe that this will reduce the number of claims by approximately 2,000 per year and save businesses £6 million per year. 

As to the fees, some sources are reporting proposals that the Claimant will have to pay £250.00 to issue a claim and then a separate listing fee, that is to say a further fee prior to the final hearing of £1,000.00 and, indeed, even higher fees if the value of the claim is thought to exceed £30,000.00.  There will be exemption for those without the means to pay.

It has also been reported that the Claimant would recover the fee if successful at Tribunal, although it is not clear whether this means that the employer would be ordered to pay it or whether the Tribunal would simply refund it.

Further announcements are sure to follow.

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