Tribunal Fees now paid for will lead to changes in insurance premiums.

Tribunal fees are being abolished in July 2018 which might seem like a result, however sadly it’s not all as good as it seems!

Simon discusses some of the effects this decision will have on the system.

By Simon Underwood

The Supreme Court has ruled that tribunal fees will be abolished from 26th July 2018, and the reimbursement of fees will be back dated to July 2013…Yay! Victory for the common folk! No more will we suffer at the hands of bad bosses! However, before you all start calling you union reps complaining about how your boss always uses your favourite mug, there are some knock-on effects to consider.

Refund of Costs: The government estimate that the refund of costs to be between £27-31 million. Cost will be refunded up to £1200, which is the amount required to have a case heard in court.

Increase in claims: The introduction of the fees saw a 70% reduction in claims. This will eventually increase to a similar level, meaning more operational work time being allocated to dealing with these claims.

Potential delays in the tribunal system: With this increased amount of claims, the tribunal system will be slower for everyone.

A reduced bargaining position with regards to settlement: Employers will have less bargaining power under settlement. Leading to more pay-outs and smaller profit margins for companies, therefore having a potential negative effect on employees in the long term.

Increased insurance premiums: More cases and more settlement payments are already leading to increased insurance premiums for employers liability insurance. Ensure that you check with your insurer whether premiums have changed or are going to in the future and make a plan to cover it!

There are discussions revolving around having a nominal fee of around £50 to prevent spurious and time wasting claims. This would at least provide a level playing field and ensure claims were genuine.

Thanks for reading, now for a cuppa, where did I put my favourite mug…?

Should you require any advice about any of the points raised in this article please contact us at HR180!