A new fee system for employment tribunals and appeals is expected to have far-reaching effects for employers and their staff, according to a South Coast law firm.
The fees are being introduced from July 29 and range from a £160 minimum fee up to £950 for an individual taking a dismissal case to a hearing. For groups of workers, the fee scale goes up to £5,700.
Earlier this month (July), lawyers lost a court case to block the introduction of the fees.
However, the Court of Session in Edinburgh has granted a full hearing later this year on the legality of the Department of Justice’s move.
The government has agreed to repay any fees paid in England, Scotland and Wales if it loses that case.
Kate Brooks, an employment solicitor with Dorset and New Forest law firm Ellis Jones, said the introduction of upfront fees was aimed at deterring so-called ‘weak and frivolous’ claims. This would win the support of many employers, she said.
But Kate warned: “It will also mean that when a claim is lodged against an employer, it may be more costly as the matter proceeds, for example hearing costs, applications costs, appeal cost etc.
“This is likely to encourage more early settlements in matters to avoid additional tribunal costs, such as hearing fees.
“It would be wise for employers to ensure that their employment contracts, policies and procedures are all up-to-date in order to reduce the risk and strength of any potential claims.
“Whatever the eventual outcome of the hearing later this year, it’s fair to say that the introduction of fees for employment tribunals and hearings could have far-reaching effects for employers and staff alike,” Kate added.
Ellis Jones, a Legal 500 firm, is one of the largest law firms in Dorset and West Hampshire with approximately 100 staff including eight partners.
It has offices in Bournemouth, Canford Cliffs, Ringwood and Swanage offering a wide range of services to individuals and businesses.
