Citation, a leading UK employment compliance specialist, has published a helpful series of key facts concerning the tribunal fees which are to be introduced as part of the Enterprise and Regulatory Reform Act 2013.

The document provides all of the information that an employer needs to know about the forthcoming tribunal fees, and the impact that this is likely to have on their business.

A draft of the Employment Tribunals and the Employment Appeal Tribunal Fees Order 2013 is currently awaiting the approval of parliament, and is expected to take effect by the end of July.

Two levels of Tribunal Fees will be charged. For type A claims, such as unlawful deductions from pay, claimants will be charged an issue fee of £160 and a hearing fee of £230, a total of £390. For type B claims, claims such as a discrimination or unfair dismissal, the issue fee will be £250 and the hearing fee will be £950, a total of £1200.

Crucially, when an employer loses a case, the Employment Tribunal can order that they repay the fee to the claimant.

A fee remission scheme will be effective where a claimant cannot afford to pay their tribunal fees. Right now, the Ministry of Justice is consulting on a potential fee remission scheme for fee paying courts and tribunals. According to the scheme, applicants for fee remission would have to pass a disposable income test and a disposable capital test; which would include savings, investments, shares, redundancy payments, but not the compensation paid by an unfair dismissal or personal injury claim.

Fee remission of up to £1000 would be available to households where disposable capital does not exceed £3000, including the assets of a partner. For larger fees of £1000 to £4000, the disposable capital limit will increase to £8000. While no evidence of disposable capital is required, applicants must sign a ‘statement of truth’ to declare that the figures are accurate.

So, how will tribunal fees impact the employer?

On one hand, the forthcoming tribunal fees could lead to a reduction in nuisance claims, but there are caveats.

High-earning employees are unlikely to be deterred by the fees, while fee remission is likely to be available to many candidates. It also means that should claims be pursued, and be successful, they are likely to be even more expensive to the employer.

For more information on employment law and all of the latest reforms and legislation changes, visit www.citation.co.uk today or call 0845 234 0404.