February 04, 2011
The government has published plans to reform the employment tribunal system. The proposals are aimed at reducing the cost burden on tribunals and small businesses and reducing the number of unmeritorious claims, saving time and money.
The proposals include the introduction of a tribunal fee (potentially of around £500) that claimants must pay to bring a claim in the tribunal and an extension of the length of continuous employment needed to be served by an employee before they can bring a claim for unfair dismissal, from one year to two.
The fee is designed to put people off from making weak and vexatious claims. The extension in the qualifying period is justified as providing encouragement for employers, particularly small businesses, to hire more staff and create more jobs, by reducing regulation and maintaining a flexible and dynamic labour market.
However, both elements have been criticised by some commentators who suggest that the fee will unfairly discriminate against those who are less well off and that the extension in the length of service will have no real effect and encourage employers to turn to other causes of action such as discrimination or whistle blowing instead.
Other proposed reforms include increasing efficiency by speeding up listings and reducing the length of hearings, increasing claimant disclosure obligations and ceasing the payment of the parties’ expenses. Plans to introduce compulsory mediation and the involvement of ACAS before a case is filed are also included.
