The UK Government has issued a consultation paper that includes a proposal to re-introduce fees in Employment Tribunals (ET) and the Employment Appeal Tribunal (EAT). The Ministry of Justice has proposed a fee of £55 to bring a claim to the ET or issue an appeal to the EAT.
The Minister for Courts and Legal Services, Mike Freer, said:
“The Ministry of Justice has carefully considered the 2017 Supreme Court ruling on the previous approach to fees in the employment tribunals and has endeavoured to ensure that the fees proposed in this consultation are proportionate and affordable, in line with the judgement.”
The proposed fees are significantly lower than previously (when ET issue fees ranged from £160-£250 with further hearing fees ranging between £230-£950), with a claimant paying £55 to issue any claim at the ET, and an appellant paying the same amount at the EAT. Unlike, the 2013-2017 tribunal fee regime, there will not be a further hearing payment before any trial.
For claims pursued by multiple claimants, the fee would remain at £55 split between the claimants. A system for remission from fees will also be introduced for those who are genuinely unable to afford the fees, as well as some specific ET claims being exempt from fees altogether.
It is believed that there is enough time to reintroduce tribunal fees before a general election.
The consultation paper sets out the three key principles governing the proposed charges:
- Affordability;
- Proportionality; and
- Simplicity.
It has been assessed that the fee of £55 is generally affordable for appellants and claimants. The “Help with Fees” scheme used elsewhere in the judicial system will also apply.
Based on 2022-23 volumes, the Government estimates that the proposed fees could generate between £1.3m and £1.7m annually from 2025-2026 onwards.
The consultation is due to close on 25 March 2024 and if implemented, payments may become payable from November 2024.
Comment
One of the main frustrations our client’s experience with the current system is that claimants can pursue baseless or meritless claims without consequences and that the costs of defending such claims are often way in excess of the costs to settle out of Court.
Whilst anything that acts as a deterrent to ill-founded claims is welcome, it is unlikely that the cost of £55 will deter many.
That said, we do appreciate that imposing costs at a time when most genuine claimants have lost their jobs or are suffering from discrimination needs to be carefully considered and should not act as a barrier to justice.
How can we help?
Laura Kearsley is a Partner in our expert Employment Law team. Laura has a strong reputation in all aspects of employment law, including Employment Tribunal litigation, discipline and grievance issues, and unfair and constructive unfair dismissal claims, and has particular experience in developing HR support services for businesses.
If you would like any advice concerning the subjects discussed in this article, please contact Laura or another member of the team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online form.
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