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Fees for employment tribunals begin | Fees for employment tribunals begin |
(35 minutes later) | |
People bringing employment tribunals must now pay a fee, for the first time since they were created in the 1960s. | People bringing employment tribunals must now pay a fee, for the first time since they were created in the 1960s. |
Under the new Uk rules, they will have to pay £160 or £250 to lodge a claim, with a further charge of either £230 or £950 if the case goes ahead. | |
The higher charges will cover cases like unfair dismissal, the lower ones issues such as unpaid invoices. | |
Employers welcomed the fees as a way of "weeding out" weak claims, but one union said the move was "draconian". | |
The Unite union said the measures would make British workers "some of the worst protected in the EU". | |
Another union, the GMB, will stage a protest outside an employment tribunal in central London later. | Another union, the GMB, will stage a protest outside an employment tribunal in central London later. |
Those claimants unable to pay may apply to have the tribunal fees reduced or waived. | |
Justice Minister Helen Grant said: "It is not fair on the taxpayer to foot the entire £74m bill for people to escalate workplace disputes to a tribunal. | Justice Minister Helen Grant said: "It is not fair on the taxpayer to foot the entire £74m bill for people to escalate workplace disputes to a tribunal. |
"We want people, where they can afford to do so, to pay a contribution. | "We want people, where they can afford to do so, to pay a contribution. |
"It is in everyone's interest to avoid drawn out disputes which emotionally damage workers and financially damage businesses. That's why we are encouraging quicker, simpler and cheaper alternatives like mediation." | "It is in everyone's interest to avoid drawn out disputes which emotionally damage workers and financially damage businesses. That's why we are encouraging quicker, simpler and cheaper alternatives like mediation." |
From Monday, workers in the UK will be charged a fee to bring a claim, a fee if the claim is heard and a further charge if they want to appeal against the decision. | From Monday, workers in the UK will be charged a fee to bring a claim, a fee if the claim is heard and a further charge if they want to appeal against the decision. |
In the Employment Appeal Tribunal, the fees are £400 to lodge an appeal and another £1,200 for a full hearing. | In the Employment Appeal Tribunal, the fees are £400 to lodge an appeal and another £1,200 for a full hearing. |
Costs are reduced in instances of multiple claims, where two or more people bring claims against the same employer. | Costs are reduced in instances of multiple claims, where two or more people bring claims against the same employer. |
Employers' organisation the CBI welcomed the fees, saying they were a good way of "weeding out weak claims". | Employers' organisation the CBI welcomed the fees, saying they were a good way of "weeding out weak claims". |
"Fear of the costs of fighting a tribunal - even when you are in the right - is a massive confidence killer. With firms and employees waiting over a year for a tribunal at the moment, something has to be done to speed things up," the CBI added. | "Fear of the costs of fighting a tribunal - even when you are in the right - is a massive confidence killer. With firms and employees waiting over a year for a tribunal at the moment, something has to be done to speed things up," the CBI added. |
A legal challenge to the introduction of fees has been made, and HM Courts and Tribunals Service said it would refund people if the bid was successful. | A legal challenge to the introduction of fees has been made, and HM Courts and Tribunals Service said it would refund people if the bid was successful. |
'Throwback to Victorian times' | 'Throwback to Victorian times' |
The number of tribunal claims rose by 81% between 2001 and 2011, with the administrative costs being borne by taxpayers up until now. | The number of tribunal claims rose by 81% between 2001 and 2011, with the administrative costs being borne by taxpayers up until now. |
Chancellor George Osborne announced the plans in 2011. "We are ending the one-way bet against small businesses," he said at the time. | Chancellor George Osborne announced the plans in 2011. "We are ending the one-way bet against small businesses," he said at the time. |
A spokesman for the Federation of Small Businesses said: "For an employee, an employment tribunal can be seen as a 'no cost' option." | A spokesman for the Federation of Small Businesses said: "For an employee, an employment tribunal can be seen as a 'no cost' option." |
"The FSB hopes the introduction of fees will curb the number of speculative claims and help reduce the perceived risk of taking on staff." | "The FSB hopes the introduction of fees will curb the number of speculative claims and help reduce the perceived risk of taking on staff." |
Unite estimated that this would affect 150,000 workers a year and pledged to pay the employment tribunal costs of its members. | Unite estimated that this would affect 150,000 workers a year and pledged to pay the employment tribunal costs of its members. |
"What we are seeing today is injustice writ large as this worker-bashing government takes a sledgehammer to workers' rights - this is a throwback to Victorian times," Unite general secretary Len McCluskey said. | "What we are seeing today is injustice writ large as this worker-bashing government takes a sledgehammer to workers' rights - this is a throwback to Victorian times," Unite general secretary Len McCluskey said. |
"Seeking redress for unfair dismissal and discrimination and other injustices in the workplace is a fundamental human right - but now ministers are putting up insurmountable financial hurdles for working people in pursuit of justice." | "Seeking redress for unfair dismissal and discrimination and other injustices in the workplace is a fundamental human right - but now ministers are putting up insurmountable financial hurdles for working people in pursuit of justice." |
Andy Prendergast of the GMB, said: "The imposition of such fees represents the latest in a number of attacks on employment rights by the government. | Andy Prendergast of the GMB, said: "The imposition of such fees represents the latest in a number of attacks on employment rights by the government. |
"Bad employers are being given the green light to continue exploiting their staff." | "Bad employers are being given the green light to continue exploiting their staff." |
Some in Scotland welcomed the move. Eilidh Wiseman, a partner at law firm Dundas and Wilson, said: "I believe anything which helps reduce frivolous claims and speeds up the tribunal system will be welcomed by employers | Some in Scotland welcomed the move. Eilidh Wiseman, a partner at law firm Dundas and Wilson, said: "I believe anything which helps reduce frivolous claims and speeds up the tribunal system will be welcomed by employers |
"One of the effects of the new system should be a rise in the value of settlement offers for low-value claims. Offering £500 as an economic offer to settle is not likely to be attractive to a claimant who has paid £1,200 to bring a claim." | "One of the effects of the new system should be a rise in the value of settlement offers for low-value claims. Offering £500 as an economic offer to settle is not likely to be attractive to a claimant who has paid £1,200 to bring a claim." |
There were 186,300 claims accepted by employment tribunals in the year to March 2012, according to the Ministry of Justice. Of those, 31% were for unfair dismissal, breach of contract and redundancy. | There were 186,300 claims accepted by employment tribunals in the year to March 2012, according to the Ministry of Justice. Of those, 31% were for unfair dismissal, breach of contract and redundancy. |
Twenty-seven percent of the 186,300 claims were withdrawn - but employers in those cases still had to pay legal fees in preparing a defence. | Twenty-seven percent of the 186,300 claims were withdrawn - but employers in those cases still had to pay legal fees in preparing a defence. |
In 2011-12, the Employment Appeal Tribunal received 2,170 appeals. | In 2011-12, the Employment Appeal Tribunal received 2,170 appeals. |