Employment tribunal cases rise after fee abolished

The Ministry of Justice has just released its latest round of data on tribunals, since fees were scrapped last summer.

The number of single claims has almost doubled since fees were found unlawful, with receipts, disposals and caseload outstanding increasing by 90%, 21% and 66% respectively in the three months to December 2017, compared with the same quarter in 2016.

Multiple employment tribunal claims received have increased by 467% – mainly due to a surplus of holiday pay cases that were presented in 2017 but not the year before.

Some 8,173 single claims were filed with the tribunal system over the three months to December 31st, a 16% increase compared to the previous quarter and the highest level seen since the third quarter of 2013.  The total number of cases, both single and multiple claims, rose 32% compared with the previous three month period.

Just under 3,000 single claims per month has become the new normal, the sharp rise seems more dramatic when compared to a relatively low number before fees were abolished.

Of the total claims accepted during the quarter, almost a quarter (22%) were for unlawful deduction of wages, around 13% were equal pay claims, 7.5% breach of contract and 3% sex discrimination.

The stats also show that from the launch of the fee refund scheme in October 2017 to 31 December 2017, 4,800 applications for refunds were received and 3,400 payments made, with a total value of £2.8m.

tribunal claims rise1 - outsourced hr - hr revolution

This upward trend is likely to continue for the next 12 months, but claim numbers would be unlikely to exceed the levels they did prior to fees being introduced.  This is primarily because of the Acas early conciliation scheme, which was introduced at the same time as the fee regime and remains in place.  This makes it mandatory to explore conciliation before lodging a claim and there is no doubt that this has reduced the number of claims making it through.

Employers will be increasingly wary of a claim being brought when handling HR issues.  As always, prevention is better than cure and having a robust set of employment policies in place and training on key areas such as sickness absence and equality will go some way towards mitigating the risks.  Remember, small issues can escalate to big and costly issues very quickly.

If you would like any practical advice or guidance please get in touch and see how we can help: call +44 203 538 5311 or email: hello@hrrevolution.co.uk or visit www.hrrevolution.co.uk  where our expert CIPD HR professionals are waiting to help you with any questions you may have.

HR Revolution; supporting you, your employees AND your business.

HR BLOGGER CTA

A version of this article first appeared on hrmagazine.co.uk

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s