UK Government Launches Consultation on Reintroduction of Employment Tribunal Fees

The UK government has recently initiated a consultation on the possible reinstatement of employment tribunal fees, a move that comes almost seven years after the Supreme Court declared such fees unlawful. Mike Freer, the Minister for Courts and Legal Services, emphasizes that the proposed fees are carefully calibrated to be proportionate and affordable, aligning with the 2017 Supreme Court ruling.

Proposed Fee Structure

Under the government's new proposal, the fees are notably more economical than their predecessors. Claimants would now pay ￡55 to initiate any claim at the employment tribunal, and appellants would incur the same amount at the Employment Appeal Tribunal. Unlike the previous regime (2013-2017), there would be no hearing fee under the current government's proposals.

"Considering the fees connected with money claims in civil court, I think the proposed fee is reasonable and should?help to?hold both parties accountable." - Gaby Bramah - Director.

Historical Context

Employment tribunal fees were initially introduced by the coalition government in July 2013, categorizing claims into Type A and B. Type A claims, covering simpler disputes such as unpaid holiday pay, involved an "issue fee" of ￡160 and a "hearing fee" of ￡230. Type B claims, which addressed more complex disputes like discrimination, carried an issue fee of ￡250 and a hearing fee of ￡950. The Employment Appeal Tribunal attracted a ￡400 issue fee and a ￡1200 hearing fee. Multiple claimants sharing a claim maintained a fee of ￡55 each. Additionally, a system for fee remission was introduced for those genuinely unable to afford fees, with specific employment tribunal claims being exempt.

Current Proposal and Criticisms

In contrast, the proposed fees are significantly reduced, aimed at making justice more accessible. However, critics, including Christina McAnea, the general secretary of Unison, the union that challenged the government in 2017, argue against the reintroduction. McAnea contends that the attempt to resurrect a previously failed and illegal policy indicates a lack of innovative ideas from the government. She asserts that tribunal fees historically denied the poorest and most vulnerable access to justice, with the only beneficiaries being unscrupulous employers.

The ongoing consultation is set to conclude on March 25, 2024, will determine the fate of employment tribunal fees in the UK. As stakeholders express their opinions on this significant policy shift, the government faces the challenge of balancing the need for affordable access to justice with the concerns raised by critics who argue against the reintroduction of fees.