FEATURE


HR & EMPLOYMENT Changes to tribunal laws


Nickie Elenor, solicitor and Managing Director of Your HR Lawyer, explains why HR and employment law practices must be watertight following landmark legislation


On 26 July, the Supreme Court of the United Kingdom ruled that fees for bringing an employment tribunal claim, introduced in 2013, were unlawful and that the Government will now have to repay up to £32m to claimants. The ruling hinged on the fact that, while fees ranged


from £390 to £1,200, discrimination cases cost more for claimants because of their complexity and the time hearings took to complete. The Supreme Court found this was indirectly discriminatory because a higher proportion of women would bring discrimination claims. But what does that mean for businesses? Those opposed


to the fees said that it was preventing access to justice and that people were unable to bring claims because they could not afford to do so. While there is no question that access to justice is important, the introduction of the fees did cause a decline in nuisance claims. These claims were lodged on weak arguments, simply to seek a settlement


payment from an employer, which paid out just to avoid an employment tribunal hearing. Following the introduction of tribunal fees, there was a


significant decrease in the number of claims brought by employees against employers. The number of claims brought in the quarter following the introduction of fees in 2013 was reduced by 79% compared to the same quarter in 2012. Employees that may not have had strong grounds for bringing a claim may have been deterred by the payment of a fee. Now, they may consider that they have nothing to lose by bringing a claim, as it will be free for them. Once an employee brings a claim, the employer will need to respond to that within 28 days or the employee will be successful. While it is unlikely that the number of claims going to a


full hearing will rise back to the levels seen prior to 2013 (according to ACAS only 18% of the claims they are notified of progress to a tribunal claim), it is still likely that tribunal claims will surge in the coming months and years without


42 business network September 2017


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