Employment News Update – Tribunal fees

From Monday 29^th July 2013 fees will become payable in the Employment and Employment Appeal Tribunals. With effect from this date all claims and appeals will be liable under the Employment Tribunal and Employment Appeal Tribunal Fees Order to pay a fee or provide an application for fee remission against that fee under the HM Courts and Tribunals Service Remission Scheme.

The main points which have to be borne in mind are as follows:-

• Claims are divided in two types: type A and type B. Each has a different level of fee.

• Fees are payable both on issue of a claim and issue of a hearing date.

• Fees will increase for both issue and a hearing in accordance with the number of Claimants.

• Those who qualify may apply under the remission system to exempt them from paying fees. For more information about the remission system see below.

• Type A claims are the more straight forward and lower value claims. Type B claims consist of everything else i.e. unfair dismissal, discrimination etc.

• Fees payable are as follows:-

Issue of claim

Single Claimant:            type A claim £160        type B claim £250

2 – 10 Claimants:          type A claim £320        type B claim £500

11 – 200 Claimants:      type A claim £640        type B claim £1,000

Over 200 Claimants:     type A claim £960        type B claim £1,500

Hearing fee:

Single Claimant:           type A claim £230       type B claim £950

2 – 10 Claimants:          type A claim £460        type B claim £1,900

11 – 200 Claimants:      type A claim £920        type B claim £3,800

Over 200 Claimants:     type A claim £1,380     type B claim £5,700

• Where judicial mediation is listed, a fee of £600 is payable by the Respondent which will be due on the date specified in the notice listing the judicial mediation.

•  Fee for reconsideration of a default judgment – type A claim £100 type B claim £100.

• Reconsideration of a judgement following a final hearing – type A claim £100 type B claim £350.

• Dismissal of claim following withdrawal – type A claim £60 type B claim £60.

• Counterclaim by employer i.e. breach of contract claim made by application as part of employer’s response: type A claim £160 (this is not a type B claim so no fee)

The above fees are all payable by the applicant.

• Notice of appeal to the EAT – fee of £400 payable by the Appellant.

• Where an EAT appeal proceeds to an oral hearing a fee of £1,200 is payable by the Appellant.

The Fees Order schedule 3 contains details regarding remissions. Full remission of fees maybe granted where either the individual is in receipt of qualifying benefits, or in relation to their gross annual income. Full and part remission of fees will also be decided on disposable monthly income. Briefly, these are as follows:-

•  Qualifying benefits:

• • Income support under the Social Security Contributions and Benefits Act 1992.

• • Working Tax Credit (provided no child tax credit is being paid to the party)

• • Income based job seekers allowance under the Job Seekers Act 1995.

• • Guarantee credit under the State Pension Credit Act 2002.

• • Income related employment and support allowance under the Wealth fare Reform Act 2007.

Gross annual income is taken into account and a full remission of fees may be applicable where the individual has income below a certain level, in accordance with the number of children and whether the individual is single or in a couple. The income levels are as follows:-

For more than 4 children, the sum of £2,930 is added for each child over the gross income figure for 4 children.

Disposable monthly income is also taken into account and no fee will be payable if, at the time when the fee is due, the disposable monthly income of the party is £50 or less. If it is more than this, the amount of fee payable is directly related to the amount of disposable income. There are calculations to work out disposable income which are set out in the Fees Order but are not repeated here and it is advised to refer to the Order.

Interestingly the income of a partner is included as the income of a party in determining the gross income and disposable monthly income but if a partner is in receipt of a qualifying benefit this does not entitle the party concerned to remission of a fee.

If an individual wishes to apply for remission of a fee he or she must do so at the time the fee would otherwise be payable and provide evidence in relation to how they qualify for a remission of fees under the respective section applicable to them i.e. benefits, gross annual income etc. However there is the inevitable “get out” whereby a fee maybe reduced or remitted where the Lord Chancellor is satisfied that there are exceptional circumstances which would justify doing so; although there are no examples of the type of circumstances which might qualify under this section.

This legal update is provided for general information purposes only and should not be applied to specific circumstances without prior consultation with us.

For further details on any of the issues covered in this update please contact Gemma Ospedale, Partner in Employment on 020 7583 2222.