Government confirms changes to unfair dismissal and tribunal system

It has been confirmed that the qualifying period for unfair dismissal claims will increase from one year to two, with effect from 6 April 2012

From April 2013, employees must pay £250 to apply for a tribunal, and must pay a further £1,000 if a hearing is granted. The money will be refunded if they are successful, but is forfeited if they lose. The Government has said that “poor claimants” will not have to pay, although there is currently no detail as to how a claimant qualifies as “poor”.

The fees have been introduced in order to reduce the number of what the Government has previously described as “vexatious” claims and the Government maintains that this change, together with the increase in the qualifying period, will result in 2,000 fewer tribunals each year, meaning a saving for business of £6 million.