Employees hit by new tribunal fees

From 29th July employees wishing to make an employment tribunal claim against their employer will have to pay up to £1,200 to pursue a claim through the Tribunal system.

Plans to introduce fees were first announced by George Osborne in 2011 following an 81% rise in the number of tribunal claims being lodged between 2001 and 2011. The government has defended the introduction of a fee on the basis that it will discourage groundless claims which cost the taxpayer and small businesses £millions each year. The Federation of Small Businesses has also argued the measure acts to encourage SMEs to create jobs as the risks of taking on new staff are reduced.

As would be expected the unions have strongly opposed the fees from the outset. Frances O’Grady, TUC General Secretary claimed: “Today is a great day for Britain’s worst bosses.” O’Grady and other union representatives claim that 150,000 workers will be affected by the introduction of the fees which they argue will limit access to justice and allow employers to get away with poor behaviour.

In the 12 months to March 2012 the Ministry of Justice reports a staggering 186,300 claims were accepted by employment tribunals. Whilst 27% of these were withdrawn by employees employers would have still been left to foot the bill for legal fees incurred in preparing and consulting on a defence.

Claims are categorised into two groups with employees required to pay either £160 or £250 up front in order to lodge a claim and a further £230 or £950 if the case proceeds to a hearing. The higher fees relate to claims such as unfair dismissal whilst the lower fees relate to claims such as those concerning unpaid wages. A fee of £400 will be applicable where an employee wishes to lodge an appeal against a decision and £1,200 should the appeal proceed to a hearing.

A challenge to the introduction of the fees is being pursued by the Unite Union, watch this space for an update on the result.

Click here for information on Holmes & Hills Solicitors Employment Law Services, including Employment Law advice for employers and Employment Law advice for employees.