Tribunal Fees Are Here to Stay (At Least for Now)

PERTH, Scotland - Jan. 6, 2014 - PRLog -- The public service union UNISON is challenging the Government over the introduction of fees for employees who wish to bring a case to an employment tribunal, but a decision on the challenge is a long way off, says Miller Hendry’s employment law specialist Alan Matthew.

Commenting on the challenge, which was recently filed at the High Court by UNISON’S legal team:

“Fees were introduced in Employment Tribunals at the end of July 2013 as part of a raft of measures designed to simplify employment procedures and encourage business to take on new staff.  Under the new rules anyone wishing to make a claim to the Employment Tribunal must pay a combination of fees.  One payment is due on submitting the claim, known as the issue fee, and another a few weeks before the hearing.”

If UNISON succeeds in their challenge we might see the end of Employment Tribunal fees, but figures released by the Ministry of Justice indicate that the introduction of fees has not (yet) had a significant impact on the number of claims.

Despite a rise in the number of claims submitted in June, balanced out by a drop in August, the figures from July to September are largely in line with historical quarterly trends.

But, says Alan, it may be too soon to tell:

“Tribunals that have been submitted in the initial period may have been initiated before the fees were introduced so it is possible that the statistics are not yet telling the whole story. We have certainly seen an increase in reluctance from former employees seeking to pursue a claim when they discover there are additional costs involved. And the statistics measure submitted claims, not the numbers of individuals who seek advice and then decide not to proceed.”

There are two categories of claim, with different fees payable.  Type A claims are for smaller, simpler cases such as unlawful deduction from wages, statutory redundancy payment, or refusal to allow time off. More complex claims such as for discrimination, unfair dismissal or whistleblowing would be categorised as Type B.

For type A claims the issue fee is £160, with a hearing fee of £230; for type B claims, it’s £230 plus £950.  However, where there are groups of two or more claimants, there are different fees.

It’s a big change for employees looking to make a claim through the Employment Tribunal system, as they previously were able to do so without a direct financial commitment.  The fees were introduced to tackle weaker claims and encourage greater use of mediation after the number of tribunal claims rose by 81% between 2001 and 2011*.

Following the introduction of the fees, UNISON secured a judicial review with their main objection being on the grounds that national courts must not make it virtually impossible, or excessively difficult, to exercise individual rights conferred by European Community law. They have also argued that it is discriminatory as women generally earn less and so may find it harder to afford the fees.  It is likely to be well into 2014 before a decision is made, but HM Courts and Tribunals Service have said that all fees will be repaid, with interest, if the Judicial Review finds the fees to be unlawful.

Alan concluded :

“The Government hopes that reforms such as this will stimulate investment and expansion, by cutting red tape and the risks involved in taking on new staff for business.

“The flip side for employees with legitimate cases is the worry about finding the cash to make the claim in the first instance, as it’s quite likely they will be out of work, or worried about work, when they are considering making a claim.  So it’s a good idea for former employees to get some advice on the strength of their claim before they set out.”

ENDS

* Official figures for cases submitted to employment tribunals

This is not legal advice; it is intended to provide information of general interest about current legal issues.