On 29 July 2013, a number of changes that affect employment law and practice came into effect.  The following key changes were introduced:

1.     Introduction of fees

Fees are now payable at different stages of Tribunal proceedings, including when the claim form is presented to an employment tribunal (issue fee) and when the case is put down for a final hearing (hearing fee).  The fees applicable to a particular case depend on whether there is a single claimant or multiple claimants, and whether the claim falls into the Type A or Type B category. Claimants who cannot afford to pay the fees may be eligible to have some or all of their fees reimbursed if they are in receipt of a sufficiently low income. Fees are also payable when making an application and for proceeding to judicial mediation.

2.     Revised ET1 and ET3 forms

The ET1 claim form and the ET3 response form have been re-drafted. In the ET1, the claimant is now required to specify the level of financial compensation sought.  There is also a new section relating to whistleblowing claims if the claimant wishes a copy of the ET1 to be sent to a prescribed person.  A form for payment and, if applicable, remission of fees must be submitted along with the ET1.

3.     New sift stage

After the claim and response have been accepted by the Tribunal, the merits of the case will be considered by an employment judge who will decide whether the case should proceed or be struck out.  The case can be struck out if the judge considers it has no reasonable prospects of success or if the claim is outside the Tribunal’s jurisdiction.  If a claim is dismissed at this stage, the claimant can write to the Tribunal to explain why it should not be dismissed.

4.     New unfair dismissal compensatory limit

The maximum award permitted for unfair dismissal is now set at the lower of the statutory cap (currently £74,200) or one year’s gross pay.

5.     Compromise agreements renamed settlement agreements

“Compromise agreements” are now known as “settlement agreements”.

6.     Pre-termination negotiations

Pre-termination negotiations, where employer and employee discuss ending the employment relationship through a settlement agreement, now cannot be used as evidence at an employment tribunal in an unfair dismissal claim.

However, the rules relating to pre-termination negotiations do not cover claims that relate to an automatically unfair reason for dismissal, such as for whistleblowing, union membership or asserting a statutory right.  Claims made on grounds other than unfair dismissal, such as discrimination, breach of contract or wrongful dismissal, are also not covered by the legislation relating to pre-termination negotiations.