Tribunal Cases Continue To Soar Since Fees Ruled Unlawful
Tribunal cases have continued to soar since fees were ruled unlawful, a
trend which holds implications for every employer, including those of
domestic and household staff.
Latest statistics released by the Ministry of Justice, regarding the
situation in the last full quarter of December 2017 show that single
claims were up 90% since fees were lifted in the summer of 2017.
Multiple employment tribunal claims received have increased by 467%
primarily due to a glut of holiday pay cases that were presented in 2017
but not the previous year.
Single employment tribunal cases were up 16% when compared to the
previous quarter in 2017, and totalled 8,173. Put together, multiple and
single employment claims showed a rise of 32% over the previous
quarter.
It is interesting to see the rises in specific types of claims:
In the last quarter of 2017: of the total number of claims accepted by
tribunals 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.
In financial terms, during the 2017 last quarter, a total of 4,800
applications for refunds of fees previously paid were made, of these,
3,400 payments were made, with a total value of £2.8m.
The statistics also showed 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.
As part of the dispute/claims process an ACAS early conciliation
scheme was introduced at the same time as the fee were introduced
and this is still in effect. It is still mandatory to explore conciliation
before lodging a claim.
One thing is clear, since the fee barriers of taking a former employer
to Tribunal have been removed, disgruntled former employees have a no
risk road to seeking recompense. We stress, as always, employers
should take appropriate professional advice before making any
decisions in these areas.
The Graham Agency, keeping you informed.