Introduction of tribunal fees could create ‘Pay-Off Culture’

The introduction of employment tribunal fees, which came into effect on 29th July, could lead to an increased ‘pay-off’ culture in the UK, an employment expert has warned.

The fees are being introduced to reduce the amount of ‘spurious claims’ that are made to the tribunal, but Andrew Willis, Head of Litigation at Croner, has said that, when put together with the proposed introduction of confidential termination negotiations, it may lead to more employees expecting financial compensation.

“If employers begin to take advantage of the limited comfort offered by protected settlement conversations in large numbers, employees will increasingly expect a ‘pay-off’ on termination of their employment,” warned Andrew Willis. “And if the case instead goes to tribunal proper, then settlement sums will inevitably incorporate an extra element to cover tribunal fees.”

“In both situations employers will bear the financial brunt,” he added.