It has been announced that fixed tribunal fees are going to be introduced in a bid to avoid unnecessary claims arising from the Agency Workers Directive. The set fees do away with uncertainty and could give employers the confidence they need to increase the size of their umbrella company contractor workforce.
AWR came into being on the first of October last year but employers did not feel the full impact of the regulations until Christmas Eve when they were required to provide temporary workers with 12 weeks service the same rights as their permanent counterparts. Employers who fail to comply with the regulations could find themselves facing a tribunal hearing.
The decision to implement fixed tribunal fees has been warmly welcomed by the British Chambers of Commerce. Adam Marshall, the director of policy at the BCC said that charging claimants to access the employment tribunal service should boost confidence amongst employers.
Currently, employers often decide to settle out of court, even if they feel a claim is unjustified, to avoid the costs associated with defending themselves at a tribunal hearing. It costs an average of £8,500 for an employer to defend his actions at a tribunal and yet the average out of court settlement is only £5,400.
AWR is in force to protect contractors and employers now have some protection against unjust claims. Hopefully employers will now have the confidence they need to increase the size of their temporary workforce and provide more opportunities for contractors.
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