I was disappointed to read the comments attributed to Theo Huckle QC the Welsh Governments Chief Legal Advisor upon the topic of Employment Tribunal Fees.
I believe it has been widely reported that the number of claims issued to the Industrial Tribunals has risen significantly in recent years and in my experience, both as the Managing Partner of a local Law Firm and as an Employer, the current system is too prone to spurious claims.
Presently any individual who feels that they may have a grievance can submit a claim to an Industrial Tribunal without it costing them a penny. The Employer is then left with the prospect of potentially spending a significant amount of time, money or both in dealing with such a claim. Many of the Employer Clients that we represent believe that it is not commercially viable to defend a claim as in so doing a considerable amount of time has to be spent in preparing and filing documentation and then attending the actual hearing itself. Furthermore there is the stress and strain of dealing with the proceedings and the fact that the case may be reported in the local press regardless of the outcome. At the end of the proceedings the Employee or former Employee then walks away from the hearing without any liability whatsoever. Frequently therefore even if the Employer feels as if they have done nothing wrong a commercial decision has to be made and invariably it is more cost effective to make a payment to an Applicant than it is to contest the proceedings. Such an outcome is hardly fair on any Employer, increases the cost of the business and prevents Employers from taking on additional staff. Mr Huckle should also bear in mind that fees have to be paid by a Claimant who wishes to bring an action for debt, breach of contract, negligence etc in the County Court and the new regulations will only bring the Employment Tribunal into line.
The current system is therefore in my view biased in favour of the Applicant who to all intents and purposes has nothing to loose by filing a claim. Further Employee or former Employee knows of the inconvenience that they will be putting the Employer to and they may be optimistic about the chances of getting something for their troubles.
Such a system does not seem to be fair or appropriate and the proposals that have been outlined will provide a much fairer platform for commerce.
Mr Huckle should bear in mind that with the economy in its current delicate state Employers should have every opportunity of flexibility and economy in their workforce and the new proposals will only assist in that regard in my opinion.
As has been specified many Claimants will be exempt from the new rules and furthermore there are many law firms who are prepared to take on good claims on a contingency (no win no fee) basis and that will undoubtedly continue which will help Employees with justified cases to make a claim and eradicate the claims with no substance – thus helping both parties.
