Employment Tribunal Fees – a barrier to justice?

Tuesday 19 February 2013

The Government has confirmed the level of fees for bringing employment tribunal claims which are to be implemented this summer.

The fees are slightly lower than initially proposed, but nonetheless they represent a significant departure from the existing system which allows a claim to be made free of charge. The Government’s intention is to encourage people to look for alternative routes, such as mediation or conciliation, so that tribunals remain a last resort for only the most complex cases.

Under the new system there will be two levels of claim depending on the type and complexity of the claim:

• Level 1 claims include straightforward issues, such as unlawful deduction from wages, holiday pay, and redundancy payment claims. This type of claim will require an issue fee of £160 and a hearing  fee of £230, payable by the Claimant.
• Level 2 claims are likely to be more complex and therefore require more time to resolve, for example discrimination, equal pay and unfair dismissal claims. The issue fee for level 2 claims is  £250 along with a £950 hearing fee.

Businesses that have been on the receiving end of a spurious claim issued by vexatious litigants in person will know just how much management time and costs are wasted in defending such actions and will no doubt welcome the introduction of fees.

Reducing spurious and unfounded claims can only be a good thing, but what is the trade off? In our view, the cost system may prevent access to justice for those who cannot afford to bring claims no matter how valid the claim is, as they have lost their job or are earning a low income. It can’t be right that an individual that has been harassed or outrageously unfairly dismissed is denied justice.

The Government has stressed that those who receive a low income will be able to seek exemption from the fees under the same system used in the civil courts. However, the General Secretary for the Trade Union Congress, Brendan Barber, states that “The government’s remission scheme to protect low-paid employees is woefully inadequate, and workers will be more likely to be mistreated at work as rogue bosses will be able to flout the law without fear of sanction.”

Therefore, although the fees may reduce spurious claims brought by vexatious litigants, their introduction is highly likely to act as a barrier to justice for disadvantaged individuals with potentially strong claims.

Let us know your thoughts.