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Changes to employment tribunal remission system announced

10 September 2013

Hot on the heels of the launch of fees in July, the Government has announced the introduction of a revised remissions system.  Claimants may currently be entitled to full or part fee remission if they are in receipt of certain benefits or meet the gross annual or net monthly income tests.

The scheme, set to come into force in October, is intended to simplify the system, but also reduces the availability of fee remission in order to target assistance at those in the greatest need.  A disposable capital test is being introduced so that those with a high level of savings but with no or low annual income should pay the fee.

Clearly this is controversial, particularly coming so soon after the implementation of the new fee system.  Whilst these measures have the sensible aim of reducing the number of weak or vexatious claims, it will only impact those claimants who have money, and not necessarily those claimants whose claims are spurious or vexatious.

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