60 second guide: to employment tribunal changes

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From 29 July 2013, individuals must pay a fee to lodge a claim at an employment tribunal, unless they qualify for fee remission.

- For straightforward claims, such as unlawful deductions from wages and statutory notice or redundancy payments, and equal pay claims, there is an issue fee is £160, with a further hearing fee of £230. - For most other claims, including unfair dismissal, discrimination and whistleblowing, the issue fee is £250, with the hearing fee set at £950. - For an employment appeal tribunal, the appellant pays £400 following receipt by the EAT of the notice of appeal. A further £1,200 is payable, following direction by the EAT that the matter will proceed to an oral hearing. - For judicial mediation – an alternative route which does not involve the normal tribunal hearing process – the fee is £600. The Ministry of Justice has produced useful guidance on tribunals, including a list of all the fees. See /www.justice.gov.uk/tribunals/employment. Eligibility for relief The requirement to pay fees is means tested so that no individual in receipt of certain state benefits or earning below gross income limits will be required to pay. The gross annual income limits vary by the number of children and range from £13,000 for a single person with no children, to £29,720 for a couple with four children. Procedural changes Other changes to tribunal rules include: - Combining pre-hearing reviews and case management discussions into a single preliminary hearing. There is no hearing fee for a preliminary hearing, so employees may be eager to have their cases decided at the preliminary stage. - Judges can strike out weak cases at the outset or demand that a deposit is paid if the claimant still wishes to go ahead with the case. - A new power for employment tribunals to make a deposit order in relation to part of a claim or response, and the power to award both costs and expenses to litigants in person. - New ET1 and ET3 forms. - A reduced cap on the compensatory award for unfair dismissal of 12 months' pay or £74,200, whichever figure is lower. The government is hoping that, in addition to the emphasis on pre-claim conciliation, these changes will significantly reduce the number of claims that pass through employment tribunals each year. It remains to be seen how effective they will be, particularly in light of the fact that the tribunal fees have already been challenged in the Scottish courts: the case is due to be heard later this year.