The Ministry of Justice has now published the results of its consultation on the introduction of charging fees for employment tribunals, which are intended to be implemented next summer.
With the aim of reducing the burden of cost of employment tribunals on the taxpayer, which last year was over £84m, the new system will be two tier; first tier claims are for cases such as straightforward claims for arrears of pay, including claims for redundancy pay and notice pay. There will be a charge of £160 to lodge such a claim, with a further £230 hearing fee payable when a hearing is assigned.
The second tier is for more complex cases, such as unfair dismissal or discrimination claims. Second tier cases will incur a lodging fee of £250 and a hearing fee of £950. There will also be a £400 fee for lodging an appeal at the Employment Appeal Tribunal, for which the hearing fee will be £1,200.
However, because those on low incomes will be able to seek exemption from fees under the same remission system that already exists people who pay fees to use the civil courts, reaction on the efficacy of the fees to reduce costs is muted.
For example, Alexander Ehmann, head of regulatory policy at the IoD, said: “The IoD is concerned that under current proposals many unemployed claimants will have their fees waived despite having the means to pay. Even the Government accepts this could mean that the majority of claimants are exempt from their new rules – a result that would undermine the entire purpose.”
While Tim Thomas, head of employment policy at EEF, the manufacturers’ organisation, also cast doubt on the efficacy of the fees, saying: “The current remission system will result in most claimants paying little or nothing.”