New tribunal rules mean an unecessary claim could be costly. MICHAEL FORD reports...

New rules that are being introduced from yesterday could prove costly for both employees who bring claims through an Employment Tribunal and employers who defend them.

"The number of claims brought before Employment Tribunals is increasing dramatically. Perhaps the new rules are an attempt to prevent claims with no reasonable prospects of success ever being issued at the tribunal,'' said Jonathan Gray, solicitor with Southampton and Reading lawyers Lamport Bassitt.

"The Employment Tribunals are also urged to look to saving expense and to act in proportion to the complexity of a particular case.

"This will no longer be the arena where there is a low risk of legal costs being awarded against the loser.

"The Employment Tribunal will now have a duty to consider awarding costs where a claim or defence is 'misconceived', that is where a claim or defence has 'no reasonable prospect of success'."

"This is a distinct change as it used to be the case that costs would only be awarded where it was shown that a claim or defence was frivolous, vexatious or malicious. It is not only the more flexible approach to the test which is to change. The cap for such awards is also rising from £500 to £10,000.

"A further change will now see the Employment Tribunal able to ask for a deposit of £500 instead of £150 if it considers that a claim or defence is unlikely to succeed following a pre-hearing review," added Jonathan.