Tribunal Costs: Financial Penalties for Employers who lose at Tribunal

Financial Penalties for Employers who lose at Tribunal

April 2014 will see a dramatic change in the Employment Tribunal System. Tribunals will be given the power to impose a levy on an Employer who loses at Tribunal. The levy will be at the Tribunal’s discretion; however once they decide to enforce the levy the rate payable will be fixed. At present this is set to be 50% of the amount of compensation awarded, though there is a cap of £5,000.  

Tribunals are to use the levy where an employer has committed ‘aggravated breaches’ in respect of employment law. This has yet to be fully explained by legislation and therefore at present leaves a very wide discretion for the Tribunal.

The new measures could be a source of worry for employers who make a genuine mistake, though so catastrophic it could be seen as ‘aggravated’. Unlike claimants, the Tribunal process can be very expensive for employers, not only in terms of the time and resources, but also for their reputation and staff morale. The added strain of a levy on top of a financial award could see cash strapped employers seeking to settle, raising questions of the ‘price of justice’.

Employers are advised to keep their houses in order, ensure their HR team and managers are up to date on their training, keep employee documents up to date and ask you solicitor for a ‘health check’ to help root out any brewing problems.

elissa.thursfield@gamlins.co.uk

Need a solicitor?

Gamlins can provide a ‘health check’ for your employment needs, drop us a line to discuss how we can mitigate risk to your business. As a North Wales firm we want to help businesses across the region with their employment needs.

Call 01745 343 500 and ask to speak to a member of our Employment Team

Our Employment Solicitors are:

John Hoult: http://gamlinslaw.co.uk/people/
Ron Davison: http://gamlinslaw.co.uk/people/
Sion Williams: http://gamlinslaw.co.uk/people/
Elissa Thursfield: http://gamlinslaw.co.uk/people/

www.gamlinslaw.co.uk