Employment Tribunal fees will be scrapped

UNISON have won their Supreme Court challenge against the imposition of Employment Tribunal Fees. The Supreme Court website is about a week out of date and at the time of writing the full judgment is not listed however UNISON has issued a press release.

The introduction of fees, four years ago, is one factor that has contributed to rising claims costs for legal expenses insurers; however the potential costs savings to be realised following the scrapping of fees will be tempered by a potential increase in the volume of claims. UNISON’s victory will not be welcomed by businesses whose vulnerability to be claimed against will return.

We don’t yet know whether fees will be refunded automatically or whether, in the future, it will be possible to charge a lower fee.

UNISON makes a valid point when it says, “We’ll never know how many people missed out because they couldn’t afford the expense of fees. But at last this tax on justice has been lifted.”

ARAG policyholders will not be in the unknown pool of individuals who were deterred from pursing their employment dispute as their decision to take out Family Legal Solutions has given them protection against the unfair fees. Business policyholders who settle fees or are ordered to pay them have also been covered.     

ACAS’s 2016-17 report shows that around 1800 requests for early conciliation are received each week on average. Just below 50% of cases settle through ACAS early mediation and avoid being escalated to a hearing. ARAG policyholders have the reassurance of legal representation throughout early conciliation and beyond.

In relation to employment disputes, the fees have enabled the Government to save around one-third of the costs needed to run employment tribunals. Since introducing fees for employment claims other tribunal jurisdictions have introduced a fee system. For example, low fees of £100 for an application/ £200 for a hearing are payable for claimants seeking dispute resolution through the Property Chamber of the First Tier Tribunal. This level of fee seems much fairer and it’s possible the employment tribunals could adopt something similar.

Aside from charging fees in tribunals, did you know that last year HM Courts & Tribunal Services turned a profit of £100m through the imposition of “enhanced court fees”?  Enhanced court fees apply where court fees are set at a level that exceeds the state’s cost of running a case. This in effect turns courts into profit centres.  We deal with a number of landlord repossession claims and the last hike in fees increased court fees for landlords by 20%.  As tribunal fees have been judged to be unfair surely these enhanced fees are also unfair? 

ARAG’s vision is that all citizens should be able to afford to assert their legal rights and we exist to protect consumers, landlords and businesses against incurring heavy expenses to make or defend a claim. While the abolition of employment tribunal fees is welcome news for employees we will keep a close eye on the impact the decision might have on our business policyholders and we remain concerned at the high cost of bringing other types of claim. 

Unrepresented struggle with employment tribunals

I was surprised by the harsh line taken by the employment tribunal and employment appeal tribunal in a case summary prepared by James English of Hempson’s Solicitors and circulated by barrister Daniel Barnett in his excellent employment law bulletin.

The Claimant brought several claims, including constructive dismissal, against his former employer.

Perhaps he didn’t have legal expenses insurance because he initially contacted ACAS for Early Conciliation without any legal representation.  The claimant named a director of the business as the party he wished to make his claim against (the Respondent). It seems that in this case matters could not be resolved through ACAS Early Conciliation and the claimant instructed solicitors to prepare his Claim Form to pursue the matter at tribunal.

The solicitors correctly named the claimant’s ex-employer, 'SNA Transport Limited' as Respondent.  The employment tribunal rejected his claim as the Respondent had not been correctly identified on the Early Conciliation Certificate. His solicitors applied to the tribunal to reconsider that decision on the basis that the use of the director's name was a "minor error", which (under the rules) allows a tribunal to overlook it.

The employment tribunal rejected that application taking the view that confusing the director with the company was not a minor error, and it had been right to reject the claim. The Claimant appealed.

The Employment Appeal Tribunal, although sympathetic, rejected the Claimant's application. It said that a two stage test should be applied. Firstly, was it a minor error? If not, the claim would be rejected. Secondly, if it was, the tribunal should go on to consider whether or not it was in the interests of justice to allow the claim to proceed. Although in principle the distinction between a natural and a legal person could amount to a minor error, in this case it did not. Each case should be considered on its facts, and as there was no error in the tribunal's Judgment, the Claimant's appeal was dismissed.

I’m disappointed about this decision as it’s an easy mistake for someone who is acting without legal representation to make. The case does however underpin the value of legal expenses insurance for ACAS Early Conciliation.  Although the system was designed with the intention that employees should negotiate without legal assistance it is not free of obstacles. If this claimant had taken out LEI, the error in completing the ACAS form would have been avoided, allowing him to pursue his action at tribunal. Additionally, the insurance would have covered the Tribunal fees and legal costs incurred.

It’s been a busy couple of weeks for our ATE Sales team – Mike Knight, ATE Sales Manager

First up was AvMA’s Annual Clinical Negligence Conference followed, a week later, by the APIL Advanced Brain and Spinal Cord Conference. Both exhibitions are regularly in our events calendar as they provide an invaluable opportunity for us to connect with new prospects and re-connect with our current partners. 

Both events were extremely busy for us, so apologies to anyone who didn’t get the chance to speak to us on our stands, please do contact us below if you would like a chat! Even though each event has a different demographic of delegates, our message is always the same.

For more than a decade, ARAG has led the way in delivering innovative after-the-event insurance solutions to law firms throughout the country. Many will talk of ‘access to justice’, but ARAG is still driven by its founding principle, more than 80 years old, that “…every person should be able to assert their legal rights, not just those who can afford it.”

Nowhere is this principle more important than in our mission to ensure justice continues to be accessible to those who have sustained severe and sometimes catastrophic injuries. At a time when claimant firms and their clients have been confronted with successive challenges, seemingly perpetual reform and shifting regulatory and market conditions, ARAG has stood firm, developing and adapting products to satisfy increasingly demanding requirements, especially in the personal injury and clinical negligence sectors.

The design of our Recourse range of after-the-event solutions has always focused on simplicity. Products that a solicitor can easily explain and a client can readily understand; products free from complex underwriting mechanisms and onerous conditions; products, put simply, that work.

As a result, we are regularly shortlisted for a string of awards, from Personal Injury Insurance Provider of the Year to Legal Expenses Team of the Year, ARAG has been recognised as the outstanding provider of legal expenses insurance solutions for law firms and their clients.

I always enjoy attending events like those put on by AvMA and APIL as they offer a perfect mix of business and networking. Then again, maybe that’s why I have now decided to take on the challenge of Dry July!

The idea of going alcohol free during a summer month of BBQ’s, sporting events and corporate entertaining is not going to be easy but it is for a great cause and a charity close to our hearts at ARAG; FOCUS. The motivation to stay off the alcohol and enjoy a range of non-alcoholic beverages throughout the month comes from the knowledge that any donations received will enable the charity to invest in projects that make hospitals better. Their aim is to create a comfortable and positive environment for all their patients and staff, investing in improvements to buildings, state of the art equipment and extra care over and above that provided by the NHS. If you would like to show your support, please click here. 

Going forward, we are supporting the St John’s Chamber and AvMA Charity Dinner in Bristol on the 21^st September and exhibiting at the APIL Clinical Negligence Conference in Brighton on the 5^th and 6^th of October – I hope to see you there!

Contact details:

Mike Knight, ATE Account Manager

Email: mike.knight@arag.co.uk

Mail: 9 Whiteladies Road, Clifton, Bristol, BS8 1NN

Mobile: 07795 636391

Guest Blog - Our Product Taskforce team experience in Bristol

On Wednesday 7th of June, a group of international ARAG colleagues met up in Bristol to work together for the Task Forces initiative.

The main idea behind the Task Force project is to bring together product developers from different ARAG countries to brainstorm and push innovation forward in quick and unexpected ways.

Our two groups, focusing on the topics of Sharing Economy and Cyber, discussed product ideas and future market trends, presenting their results to each other at the end of the day. The presentations were interesting and to the point, as everyone worked hard to prepare the road for the final goal: the International Product Workshop in September!

We strongly believe that new creative opportunities can be created through cross-country discussions and idea-sharing. It was a real pleasure to be hosted by ARAG UK in Bristol, having the chance to make an office tour within the premises and meet all the colleagues.

Many Thanks to everyone and see you next time!

Jennifer, Ilaria and Camilla, ARAG SE

  

Why serving our customers is so important – George Bladon, Corporate Account Manager

I’ve just returned from a busy but enjoyable couple of days on the sunny English Riviera, attending the NFRN Annual Conference, in Torquay.

The NFRN represent a large number of independent retailers across the UK and Ireland and they were gathered together in order to discuss the various challenges they face in their daily business lives: from financial pressures due to increased business rates and competition from supermarket chains, to onerous legislation and regulations.

Being able to engage directly with the end user of our product was a fantastic opportunity for us and an important reminder of why we place so much emphasis on being an innovative and flexible partner.

Over the last two days, we spoke to independent retailers about the wide range of legal issues that concern them, including employment issues, tax enquiries, licensing matters and contractual disputes.

With lawyers charging hundreds of pounds per hour, the cost of getting involved in any sort of legal dispute could be crippling, so it was great to be able to reassure NFRN members about the benefits of the policy and how it can help with advice, assistance, online legal resources and vital legal protection.
Clearly, not all retailers are going to face the same issues. For an organisation like the NFRN, looking to provide its members with a product that really meets their needs and provides great value, working with a flexible and innovative partner like ARAG is invaluable.

As a company, we have something in common with such customers, who strive for independence and self-fulfillment. As an independent, family-owned business, we are free to make our own decisions, without constraint, making independence our most valuable asset. It provides a significant business advantage for our partners as we are quick, flexible and easy to do business with, enabling us to work out a solution that works for you.

If you are looking to offer your customers a tailored legal expenses and assistance insurance product then please get in touch to find out how we can provide the solutions to assist you.

Contact details:

George Bladon, Corporate Account Manager
Email: george.bladon@arag.co.uk
Mail: 9 Whiteladies Road, Clifton, Bristol, BS8 1NN
Phone: 0117 307 2262
Mobile: 07766 130469