Department for Business Innovation and Skills (BIS) has confirmed that some of the Government’s radical proposals for tribunal reform will come into force on 6 April 2012.

Firstly, an increase in the maximum amount of a deposit order from £500 to £1,000 is to be implemented. In effect, these are orders which require either party (claimant or respondent) to pay a sum of money as a condition to pursue part or all of a claim/ response. This deposit may be lost if the contentions were not successful. However, at present the deposit order can only be made at a prehearing review on cases which have “little reasonable prospect of success”. It is unclear whether the scope of the orders deposit is to be widened to include all hearings and to amend the test to permit a wider usage.

Secondly, an increase in the maximum amount of a costs order from £10,000 to £20,000. In employment Tribunals, applications for costs (expenses in Scotland) can be made at any time during the proceedings. There are three areas of costs:

1. Costs award – covers “fees, charges, disbursements or expenses incurred by or on behalf of the party, in relation to the proceedings”. This can be awarded to a party who was represented at the time of the hearing.

2. Preparation time order – can be made in favour of a party who has not been legally represented at a hearing, or where there was no hearing, when the case was determined.

3. Wasted costs order – can be made against a representative as result of the representative’s conduct.

The increase in the cap of a cost order up to £20,000 has been made in order to encourage parties with weak claims / responses to think carefully before initiating Tribunal proceedings.

Thirdly, witness statements to be taken as read unless the tribunal directs otherwise. This is purely a time saving exercise; some witness statements take a whole day to read out.

Finally, employment judges hearing unfair dismissal cases alone unless they direct otherwise. Currently, the employment Tribunal Judge will sit between two “wingers” or “lay members”, removing their presence in unfair dismissal claims will further reduce Tribunal costs.