PEOPLE BUSINESS NEWSLETTER
New Employment Tribunal Rules of Procedure came into force for claims received from the Tribunal on or after 29th July 2013, following a review carried out last year.
These reforms are regarded as the biggest to Employment Law Tribunals for over 25 years.
The aim is to simplify the existing rules which have been criticised for not being very "user friendly".
It is important to understand what these changes mean for businesses; therefore, we have put together a summary of the key changes as well as tips to help your business deal with these reforms.
Summary of key changes
Mediation and Settlement
The tribunal, where appropriate, will encourage parties to use ACAS (Advisory Conciliation and Arbitration Service) or other mediation to resolve disputes by agreement.
Presenting a Claim
There will be a requirement for the Claimant (employee) to pay a fee to lodge a tribunal claim. A tribunal will reject a claim form if it is not accompanied by the fee. An initial fee will be paid to issue a claim, and a further fee will be payable if the claim proceeds to a hearing. There are two levels of fee which will depend on the type of claim.
The tribunal will also have the power to reject a claim if it is in a form which cannot sensibly be responded to. It is unclear how this will be interpreted, but it may well impact on unrepresented Claimants with poor language skills who have inadequately drafted their claim form or whose details are illegible.
Default Judgements
The tribunal will no longer automatically issue a default judgement if a response has not been received by the 28-day deadline. An Employment Judge will decide whether they can determine the claim from the information they have before them.
Sift Stage
One of the most important changes is the introduction of an initial sift of claims by an Employment Judge before the claim progresses any further. If the Judge considers there are no reasonable prospects of success for a claim, then they can strike out the case without the need for any hearing.
From a practical perspective, it is important that the parties ensure that the pleadings are comprehensively drafted in the first place. Therefore, it is important to keep a good record of evidence to show that a fair process has been followed, which should then make it easier for the Judge to see what actions have been taken.
Withdrawal and Dismissal of Claims
Where a claim or part of it has been withdrawn, the tribunal will automatically issue a Judgement formally dismissing the claim. This should mean that employers no longer have to apply for dismissal of proceedings, however as there is no timeframe stated, parties may end up chasing the Tribunal.
Timetabling
A Tribunal may impose time limits on parties in terms of presenting evidence, questioning witnesses or making submissions. In practice, this happens already and can be quite effective in focusing the minds of those involved on the core issues in the case.
Tips for dealing with Tribunal reforms
•Ensure your HR policies are stringent and up-to-date.
•Seek advice and guidance on employment law issues to reduce the risk of a tribunal claim.
•Compensation rules and fee charges can be complicated. It is essential, therefore, to seek advice on these areas to avoid potentially paying fees that you do not need to.
•Although the new reforms can stop weaker cases getting to the hearing stage, try not to rely on this by becoming complacent when handling employee relations issues.
This summary is a snapshot and of course the Tribunal will still retain discretion on whether claims proceed. However, from the look of the new rules, they appear to be a welcome addition in attempting to reduce claims that have no merit, at an earlier stage than is currently possible. This will hopefully save on legal costs and time.
The intention of the rules is for both parties to be on an equal footing, but the new rules do appear to be tipped in favour of employers in dealing with claims.
As to how they will work in practice, time will tell.
Watch out for further developments and updates in our newsletters later in the year.
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We can offer mediation services from professionally qualified staff.
If you would like more information on this service or any advice on the new rules,
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