The Supreme Court decision that tribunal fees are unlawful is significant for all employers, including your clients. Fees were introduced in July 2013 to transfer the financial burden of employment tribunals from tax payers to those who were using them. Claimants would have to pay up to £1,200 to have their claim heard, depending on the matters in issue. UNISON challenged the regime and have been unsuccessful previously.
The Supreme Court has now found that fees are unlawful because they restrict access to justice and discriminate against women and those with particular protected characteristics.
This decisions means that, from the 26th July 2017, claimants do not have to pay a fee to make a claim against your clients. This is likely to mean a long term increase in the number of tribunal claims as there is no longer a financial deterrent against current and ex-employees making these claims.
In the coming months, your clients may see an influx in claims. For most claims, there is a three month time limit from the last unlawful act within which a claim has to be submitted. Employees who were previously put off going to tribunal because of the requirement to pay a fee may now rush to make a claim before their time limit expires.
The importance of not ending up in front of a tribunal is more important than ever for your clients due to the introduction of tribunal judgments being published online. This allows anyone to view the decisions made against your clients and will also contain any scrutiny of the business that the tribunal carries out. This could have significant reputational damage for your clients.
Your clients need to review their business to ensure they are reducing the risk of their staff making tribunal claims. Providing staff with the correct documents, having transparent policies in place and following fair processes will reduce the likelihood of them facing a claim. Treating staff fairly and correctly will prevent your clients from being adversely affected by the removal of tribunal fees and will prevent any increase in the number of claims being made against them.
