Employment Tribunal Statistics

In this month’s blog we focus on the recent report from the Ministry of Justice, published on 18^th October 2013, into the number of claims that Employment Tribunals received between January and September 2013.

This report makes interesting reading as it covers the period in which the controversial Employment Tribunal fee system was introduced, with effect from 29^th July 2013. 

It therefore provides the first real illustration of the impact that fees have had on access to justice.

At first glance the effect that Employment Tribunal fees have had on the number of claims issued does not appear to be too significant, as between January and May 2013 an average of 17,000 claims were lodged.  This is in line with the historical monthly average.

Upon closer analysis of the statistics it becomes apparent that there were 25,000 new claims issued in June 2013 and a further 17,000 in July 2013.  We speak from experience when we say that the sharp increase in June 2013 is likely to be explained by the ‘cluster’ effect as Claimant solicitors elected to issue as many claims as possible before 29^th July in order to avoid being caught by the fee system. 

Alarmingly, the report evidences that following this surge there were only 7,000 new claims issued in August 2013. 

In September 2013, there were 14,000, which despite being a marked increase from August, is still significantly lower than the historical monthly average.   

It should be noted that this report has not yet been through the Quality Assurance process and therefore is not yet classed as an Official Tribunal Statistics publication, although revised statistics are set to be released on 12 December 2013. 

We hear anecdotally that the Leeds Employment Tribunal were not able to process many of the claims it had received before 29 July 2013 until well into August 2013.  Assuming that this trend applies to all of the Employment Tribunals across England, Scotland and Wales the increase of receipts in July 2013 is likely to be higher than is cited in the report, and further, the figure for the number of receipts received in August 2013 may also be inaccurate.  

Additionally, it should be noted that since the introduction of fees there is an increased time lag in claims being entered into the Employment Tribunal’s case management system, which is likely to render both the August and September figures inaccurate.

Nevertheless, we consider that the clear fall in the number of claims issued is very concerning.  We have predicted for months that the fee regime would deter genuine claimants – it seems like that is exactly what is happening.  Our own experience is that clients are less likely to pursue claims, now, given the risk of paying out substantial monies with no guarantee of recovery.

 

Christopher Ridley - Solicitor

For further information on Employment Rights, please visit our website or call 0033 3344 9600 and ask to speak with our Employment Rights team.