CAREER NEWS CAREER Workers now have to pay for justice
In one of the biggest shake-ups to employment law, workers now have to pay a fee if they want to go to tribunal for unfair treatment. The fees are charged according to the nature of the claim – but many workers may now be put off with the process. We hear from two experts about the matter.
Adrian Barnes, Head of Employment, DBS Law “The introduction of fees in the employ ment tribunal means that it can cost £350 just to lodge an ET1 if you feel that you have been unfairly dismissed. The Ministry of Justice believes that this is one way that the spiralling claims at tribunals can be reduced. “As with all things there is a failsafe to
make sure that those unable to afford the cost will have a remission from the fees, therefore, those on benefits (job seekers, if you have just lost your job) will be able to lodge a remission application instead of the fee. The introduction of fees has added another layer of bureaucracy, which will take even more time and resources to attend. It remains to be seen if there is any reduction in spurious claims. “There is also the issue that settlement of claims may be more difficult or expen- sive. A vast majority of all claims taken to the employment tribunal settle before the hearing. However, it is unlikely that any Respondent employer would want to settle before the Claimant has paid their hearing fee of £950, just in case they don’t go ahead. Of course, if the Claimant does pay the fees he is going to want to recoup those in any agreed settlement, adding £1,200 to the settlement total.”
Andy Williams, Legal Director, Charles Russell LLP “This marks a radical change in the history of employment law. The theory behind the introduction of fees is simple – to oblige those who can afford to pay,
IN BRIEF
to contribute towards the cost of running the Employment Tribunal system (a system that is currently funded by the tax payer). There has been much spec- ulation over the extent to which the new fees are intended to persuade potential Claimants with weaker claims from bringing or pursuing claims. Whether or not that was the intention, it is likely that some Claimants will be put off bringing a claim for financial reasons. “Whilst most employers will welcome
the introduction of fees if the effect (if not the intention) of the new system may be to reduce the number of claims brought by disgruntled former employ- ees, there is a danger that the new fee system may well end up merely increa - sing the size of settlement packages on many occasions. This way the cost of the new fees may end up ultimately being borne by employers after all. One thing that is certain is that this is a time of great change in Employment Tribunals – as well as the introduction of fees, Tribunals now have much wider powers to deal with claims proactively. Employment law is indeed entering into a brave new world.”
RESEARCH Pay packets shrink
The UK Job Market Report has revealed that the average wage for an advertised position has fallen by £1,670 a year – not good news for those who are currently job hunting.
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LondonOffices.com revealed that a whopping two thirds of Brits did just that.
RESEARCH 60 seconds to shine
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SEPTEMBER/OCTOBER 2013 |
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