Tribunal fees - the debate continues

On 17November 2015, the House of Commons Justice Committee heard evidence on the impact of the introduction of employment tribunal fees which were introduced in 2013. The vast majority of the published responses expressed concerns about these, including that their introduction has restricted access to justice for claimants and reduced the number of genuine claims as well as those which have no real merit.

Some of the highlights of the responses were as follows:

• Working Families estimated that the UK’s 1.2m employers (both public and private sector) now risk facing a tribunal claim just once every 60 years, on average, and a private sector business just once every century.
• UNISON considered that the fee remission is not working.The fee remission system operates to exempt certain claimants from fees depending upon their income.The scheme is not as generous as was first predicted and many low paid workers are disqualified from a full remission.
• Citizens Advice recommended that all hearing fees should be reduced.Alternatively that there should be lower fees or an alternative system for low value claims such as non-payment of wages and other fixed amounts.
• Maternity Action identified the negative impact fees have on women subjected to pregnancy or maternity discrimination.It estimates that this year approximately 300 genuine maternity and pregnancy discrimination claims that would have resulted in a settlement or tribunal award have simply not been brought.
• The Equality and Human Rights Commission noted a 91% decrease in sex discrimination claims and 75% decrease in equal pay claims which indicates a disproportionate impact on women.
• Not surprisingly, the Federation of Small Businesses was alone in welcoming the introduction of employment tribunal fees.The FSB’s view was that their introduction will have reduced the number of speculative claims.However even the FSB stated that fees are not proportionate to wages and it believes there is a valid case for fees to be lower.The typical fee for an unfair dismissal or discrimination claim is £250 to issue the claim and a further fee of £950 payable prior to the hearing.

We will continue to monitor the situation on tribunal fees and bring further updates as and when they are available.

Should you need to discuss an employment matter please call 0113 320 5000 or email@email