Many of the new changes to employment law in the UK came into force yesterday, Monday 29 July, and employers across the UK must be aware of their obligations.
It is now necessary to pay a fee of up to £1,200 in order to lodge a claim against an employer in the Employment Tribunal or an appeal in the Employment Appeal Tribunal. All claimants must now either pay the fee – which will be tiered across two levels depending on the claim – or make an application to be made exempt from the fees.
Level 1 claims – which include wage claims, equal pay claims, holiday pay and breach of contract – will come with a fee of £390. Level 2 claims – which include unfair dismissal, discrimination and detriment claims – will come with a fee of £1,200.
The TUV has slammed the new fee structure, saying that employees will now face “barriers” to their plans to make a claim, and this will deter them from coming forward.
Len McCluskey, Unite General Secretary, agreed, saying: “Seeking redress for unfair dismissal and discrimination and other injustices in the workplace is a fundamental human right – but now ministers are putting up insurmountable financial hurdles for working people in pursuit of justice.
“We estimate that this will affect 150,000 workers a year. This is not an aid to economic recovery but a means to keep working people frightened and insecure,” added Mr McCluskey.
However, others have welcomed the changes, saying that time, money and effort will now be saved as the amount of groundless tribunal claims made each year will fall.
Other changes that are now in place include a cap on the amount of unfair dismissal compensation that can be awarded. The maximum payout now sits at either £74,200 or one year’s gross pay for claims under which the effective termination date is on or following 29 July 2013 – whichever is the lower amount.