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Low-paid prudent savers could have to raid their savings to take their employer to an employment tribunal, according to the Union of Shop, Distributive and Allied Workers (Usdaw) leader John Hannett.
He is worried new restrictions in the employment tribunal fees remissions scheme will hit low paid workers.
Earlier this year, the Government introduced new upfront fees for individuals who felt they had been wronged at work and had chosen to take an employer to an employment tribunal. A remissions scheme was also set up so that low-income individuals would not have to pay fees of up to £1,200 to make a claim.
However, from 7th October, new restrictions on the remission scheme mean that if an individual under 61 years old, or their partner, has savings or investments of £3,000 or more, they will have to pay the full fee. This new restriction applies to everyone, including those who are out of work or on low incomes, as long as they or their partner has savings.
"This is a clear disadvantage for low-paid workers who have been prudent and put modest savings aside. The change will particularly affect older workers who are more likely to have savings as they approach retirement,” said Usdaw General Secretary John Hannett. "The remissions scheme was set up to help people on low incomes avoid paying fees. But the changes which come in today could mean thousands of older workers having to raid their retirement savings if they want to seek justice against an employer that has mistreated them."
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