Employment Tribunals: To charge or not to charge?
11 Mar 2024
Should people be charged for bringing a case to an employment tribunal?
The government wants to introduce fees but is coming up against opposition from trade unions and other workers’ groups.
It’s a subject with something of a chequered history.
Employment tribunal fees were first introduced in July 20133. However, in July 2017, the Supreme Court quashed these fees following a challenge by the union Unison.
The court ruled that the fees were unaffordable for many claimants and were disproportionate for low-value claims.
Fast forward to 2024, and the government has proposed reintroducing fees in the Employment Tribunals and the Employment Appeal Tribunal, starting with a £55 charge to issue a claim at the employment tribunal or employment appeal tribunal.
This move – which is still open to consultation and includes exemptions for those on low incomes – aims to ensure users contribute towards the running costs of the tribunals, aligning it with other court and tribunal systems where users already pay fees.
But it’s not been greeted with universal approval.
In a joint statement, 48 organisations called on the government to urgently reconsider its plans.
The groups warned that introducing fees would encourage exploitation of workers, stating: “We believe this will deter many from lodging worthy claims and gives a green light to bad employers to exploit their workers.
“Bad employers are being given the go-ahead to undercut good ones, safe in the knowledge they are less likely to face claims in the employment tribunal.
“Tribunal fees risk pricing many workers out of workplace justice.”
Organisations signing the statement included the TUC, Citizens Advice, Joseph Rowntree Foundation, Fawcett Society, Maternity Action, Women’s Budget Group and Liberty.
A Ministry of Justice spokesperson said: “Our consultation proposal to introduce a modest fee of £55 would help save the taxpayer money and ensure our court system continues to run effectively and efficiently.
“We are protecting access to justice for all and have launched a more generous scheme providing financial help for those who cannot afford to pay the proposed fees.”
In addition to the introduction of fees, there have been significant changes in the compensation limits for Employment Tribunal awards. From 6th April 2024, the maximum compensatory award for unfair dismissal claims has been increased from £105,707 to £115,115. The statutory limit on a week’s pay has also been increased from £643 to £700.
Other figures include the minimum basic award for unfair dismissal cases, which has risen from £7,836 to £8,533, and the statutory guaranteed payment increase from £35 to £38 per day.
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