Wragge Lawrence Graham & Co

UK 200 2013 position: 25

The ‘costs’ of facing an employment tribunal claim: increase in compensation rates, penalties and fees

From 6 April, the statutory limits on the level of compensation that employment tribunals can award will go up. Furthermore, tribunals will have the power to impose financial penalties of up to £5,000 on employers, where it determines that the employer has breached worker’s rights and the breach has one or more aggravating factors.

In addition, we are beginning to see the consequences of tribunal fees for respondents. Recent case law suggests that the general position will be that a successful claimant will recover tribunal fees paid from their employer by way of a costs order.

So what does this mean for employers? …

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