On the horizon…Inquiry into Tribunal Fees

During July 2015, the House of Commons Justice Select Committee launched an inquiry into fees and charges in Courts and Tribunals. Tow of the questions the Committee will be considering is “How have the increased court fees and the introduction of employment tribunal fees affected access to justice? and How have they affected the volume and quality of cases brought?” The honest answer to both of those questions is obvious – since the introduction of the fees the number of claims issued has dropped by 70% - lets see what the Committee concludes! 

Consultation on Simplification of the Taxation of Termination Payments 

Anyone who has experience of Settlement Agreements (formerly known as Compromise Agreements) will be aware that the taxable status of the payments can often form the focus of the negotiation. The accepted position is that the first £30,000 of compensation arising out of the termination of employment is tax free. However, there is often a debate over whether part of the payment will amount to notice, and if so, whether that part should be treated as wages or compensation. 

HMRC are currently consulting on simplifying the situation – whether the result is simplification or complication remains to be seen!