The end of Employment Tribunal fees
The introduction of Employment Tribunal fees in 2013 was met with discomfort by many people. While the government claimed that the fees would have the effect of cutting down on “malicious and weak cases,” many feared that the reality would be a denial of access to justice for those without the funds to cover the cost of taking a case all the way. Now, the Supreme Court has ruled that the fees the government introduced were unlawful and, as a result, the government will now have to repay around £32 million to those who were wrongly charged.
Rewind back to 2013
The sliding scale of fees started at £160 for issuing a claim for a breach of contract or lost wages. After that, if the case made it to a tribunal, another £230 was due and payable. However, where the cases where more complicated – for example, a discrimination case or an unfair dismissal hearing – claimants also had to bear in mind an extra fee of £250 plus a hearing fee of £950.
The impact of the introduction of fees
According to government statistics, 79% fewer claims were brought over a period of three years after the fees were introduced. Altogether around 14,000 people a year unsuccessfully tried conciliation for their employment dispute but then found that they couldn’t take the claim any further because the tribunal costs were too prohibitive.
Has access to justice been restored?
Many in the legal profession have expressed their relief at the fact that these fees have now been lifted. But what about all the businesses that could now be vulnerable to claims that may have been curtailed by the fees? The reality is that businesses operating lawfully and offering appropriate and compliant HR guidance to managers don’t have much to worry about. The Supreme Court might have lifted the requirement for fees but that doesn’t mean the tribunals system is now any more weighted in the favour of either side.
However, a substantial obstacle for Claimants has now gone, and it is thought this is bound to make it more likely that the number of Tribunal Claims, valid, or otherwise, is bound to increase.
For a no commitment discussion about your businesses contracts, or policies please contact Richard Moore 0n 01539 816416 or email rmoore@templeheelis.co.uk