Employment Tribunal Fees; Compromise Agreements renamed Settlement Agreements

With effect from 29th July, it will be necessary in most cases for a claimant to pay fees when issuing a claim in the employment tribunal and when a claim is listed for a hearing. The exceptions will call for the claimant to complete a remission application and to satisfy a means test.

The fees in mainstream claims are £250 to issue the claim and £950 for the hearing. Lesser claims for defined sums such as wages arrears will involve reduced fees of £160 and £250 respectively. It is expected to be the case that successful claimants will be allowed to recover their fees from the respondent employer, but this is not mandatory.

It will remain to be seen whether the introduction of fees will serve to reduce the number of claims.

On the same date, Compromise Agreements were renamed “Settlement Agreements”. We may ask why the Compromise Agreement, the long established means of bringing about a clean break to the employment relationship, had to lose its identity at the whim of a politician when there was no call for any such change. However, the clock will not now be turned back, so the age of the Settlement Agreement is now upon us. It may be fair to conclude that we will still hear of Compromise Agreements for some time yet.