The number of new employment tribunal claims is plummeting

Figures released from the Government have shown a dramatic reduction in the amount of new employment tribunal claims being issued.

For the period January – March 2014 there were 5,619 new claims issues; in comparison for the same period in 2013 there were 13,739 claims issued. Included in these figures are:

- 85% fall in unpaid wages claims;

- 62% fall for unfair dismissal claims; and

- A reduction from 6,017 to 1,222 new claims for sex discrimination.

Whilst officials have stated that the reduction is partly explained by the resolution of several class action cases on behalf of airline cabin crew, it is hard not to assume that the reduction is also due to the introduction of tribunal fees.

Unions agree and it’s hard to disagree. On 29/07/2013 tribunal fees were introduced:

- For Level 1 claims (e.g. redundancy and non-payment of wages claims) there is an issue fee of £160 and a hearing fee of £230;

- For level 2 claims (e.g. unfair dismissal and discrimination claims) there is an issue fee of £250 and a hearing fee of £950.

In all fairness to the government they have introduced a system of remissions whereby if you qualify for one of the 3 types if remission you will may be exempt from paying all of or part of the fees depending on your financial situation. However, despite this, there will be people who see this as a deterrent and will not issue but just put up with the injustice they believe they have been subjected to.

We have also received an indication that if a claimant is successful then they will be entitled to claim these fees from the respondent as part of the compensation, however with claims on average lasting 6-9 months depending on the complexity of the case, this is a long time to wait to receive this money back.

On the other hand, many employers will be pleased by the introduction of fees as it may be putting off any vexatious former employees lodging claims without merit, wasting vital company resources defending.

With the introduction of ACAS early conciliation which became mandatory on 6 May 2014 we may be expecting to see a further decrease in new claims as more claims settle before they even issue.

One thing is for certain, the issue of tribunal fees and numbers of claims will continue to be a hot topic until the final judicial review of the introduction of fees is carried out.

For a fee no obligation chat, please call the employment law teamon 0113 320 5000.