How the Changes to Employment Tribunal Fees Affect your Business


Did you know that on 26 July 2017 the Supreme Court ruled that the fees charged to employees to lodge an Employment Tribunal claim against their employer were immediately unlawful? These fees were introduced in July 2013 and meant that if an employee wished to raise an Employment Tribunal claim against their employer then they would need to pay up to £1200 in fees.

This is great news for the claimants as the court ruling has said that these fees will need to be refunded to the claimants.

However, the downside to this is that the Employment Tribunals are going to be more accessible to employees and we could see a dramatic increase in the number of individuals raising Employment Tribunal claims against their employers.

What this means for you as an employer is that you need to be extra vigilant about how you manage your staff otherwise you run the risk of having to spend a huge amount of money and time in defending an Employment Tribunal claim.

So what would be the basics of good employee management which could reduce the risk to your business dramatically?

1) Make sure that you have contracts of employment in place for your employees. It is a legal requirement that your employees have a contract of employment in place within 2 months of them working for you otherwise you can be fined hundreds of pounds.

2) Make sure that you have robust HR policies and procedures which outline your people management processes, eg, how you will manage underperformance, how you will deal with acts of gross misconduct, how you will manage high absence levels. All of this will clearly set an expectation from you, for the employee and set a standard approach for people management.

3) Ensure that your employees know what is expected of them through their job descriptions.

4). Make sure that your employees have the correct training and support to enable them to perform their roles effectively.

We hope that you've found this information useful. To find out more, why not check out our fantastic software HR Pulse - 'At the heart of your business'.

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