In March 2014, the Ministry of Justice published the latest figures from the Employment Tribunal. The figures make shocking reading. Applications to the Tribunal were down 79% from October to December 2013, when compared with the figures from the same period in the previous year.
It’s no surprise that this significant fall in applications, coincides with the introduction of the Employment Tribunal Fees in July 2013. From July, Applicants to the tribunal are now faced with both a fee to issue their claim (normally £250) and a fee for the hearing (normally £950). In times of difficulty, particularly if there is a possibility that you are not earning, it’s not surprising that potential Applicants are having difficulty in funding these fees, and submitting a claim to the tribunal. Although these fees are recoverable from the Respondent if the claim is successful, the fact remains that the money for these fees has to initially be met by the Applicant.
Wouldn’t it be wonderful, if there was a way that Applicants could insure themselves against the risk of losing a claim and therefore not being able to recover these fees, and gain access to a loan facility so that Applicants can borrow the £950 required for the hearing fee? There is, I hear you say?!
Our ‘FeeSafe’ policy does just that. As well as the above, it also provides cover for experts fees (and Counsel’s fees if chosen), if the Applicant is unsuccessful. The loan taken out for the hearing fee is repaid either by recovering the fee from the losing respondent, or by the FeeSafe policy if the claim is unsuccessful.
So, it seems that there is a way for Applicants reduce their risk and obtain the funds necessary to bring their claim to the Employment Tribunal. Let’s hope that the figures released for the next quarter, do not prove to be as depressing reading as the last.
See our main website for more details about our FeeSafe product.