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Written by Brabners LLP
This month, an Order has been put before Parliament which will increase the potential employment tribunal awards that can be made. This comes at a time when recently published statistics have shown an increase in certain claims being made to employment tribunals following the abolition of tribunal fees. We have set out further details below about the new limits, which apply from 6 April 2018.
The Employment Rights (Increase of Limits) Order 2018 will, when in force, amend the compensation limits for certain tribunal awards. In particular:
The Order will come into force on 6 April 2018. Any compensation awards which are made prior to 6 April 2018 will remain at the current levels.
As expected, there has been an increase in the number of tribunal claims since fees were abolished in July 2017. The statistics for July-September 2017 show that, when compared to the same period in 2016, the number of claims lodged by a single applicant increased by 64%. However, the number of claims that were lodged by multiple applicants decreased by 15%. The most recent statistics, for the period from October 2017-December 2017, show a similar pattern of increased employment claims. The statistics include:-
Whilst there is normally an increase in the minimum and maximum tribunal awards each year, this is particularly unwelcome at a time when the number of individual claims being brought has increased. Employers should continue to be mindful of the risks of litigation and ensure steps are taking to avoid employment litigation wherever possible.
Disclaimer: These articles are for general guidance purposes only and should not be used for any other purpose. The articles listed have been written by Brabners, unless otherwise stated, and reproduced with their permission by FCSA. Brabners is a Limited Liability Partnership.