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Some good news for Employers...

10 Aug 2013

As of 29 July 2013:

Employees must now pay fees to take their employers to a tribunal.

This should reduce the numbers of claims being pursued. However if employees are in receipt of certain benefits they will be exempt and if the claims succeed the employer may be ordered to pay the fees.

Compromise agreements have been replaced by ‘settlement’ agreements.

If you use a standard agreement, please send it to a member of our employment team and we will review the document for you.

In certain circumstances, employers can now make a settlement offer before a dismissal without the employee being able to refer to it in subsequent legal proceedings.

Employers should proceed with caution. There is a Code of Practice to be followed and the new rule doesn’t apply to all dismissals or to discrimination claims. Contact us for advice first.

Unfair dismissal compensation is now capped at one years’ pay or £74,200 (whichever is the lowest) for dismissals which took place on or after 29 July 2013.

The new one year cap is helpful for employers when assessing potential tribunal awards. However employers should again note that this new rule doesn’t apply to all dismissals or to discrimination claims.

For further advice, please contact Sarah Furness on 0191 232 8345 or email: sarah.furness@hay-kilner.co.uk