Employment Tribunal fees were abolished on 26 July 2017 due to the Supreme Court declaring that the fees were an unlawful interference with the common law right of access to justice.
Fast forward to today, and the Ministry of Justice has proposed re-introducing the fees and has launched an open consultation which will close on 25 March 2024. If the Ministry of Justice is successful in their proposition, a fee of £55 will be payable for all Employment Tribunal and Employment Appeal Tribunal cases from November 2024 onwards. This would raise an estimated £1.3-£1.7 million a year for the Tribunal and would incentivise parties to attempt to settle their disputes without the need for a Tribunal.
The question for employers will be whether the introduction of the fees will reduce the number of employment claims they will face. The fee of £55 is significantly lower than the previous 2017 fee, where to issue a claim, it cost the claimant £250, and a further £950 upon a final hearing. The Ministry of Justice has also stated that people on low incomes with little or no savings will be able to access ‘Help with Fees’ and have the fee either fully or partially paid for them. Even for employees who are not entitled to the Help with Fees support, it is unlikely that £55 will stop them from pursuing a claim potentially worth thousands of pounds. We therefore do not anticipate any significant reduction in the amount of claims that employees will face.
In practice, it is always better for both a claimant and a defendant to try to avoid going to a Tribunal due to the amount of time it takes, along with usually higher legal fees. We manage to settle the majority of claims that employers face before a Tribunal is involved, ensuring that a desirable outcome is reached as quickly as possible.
If you need any advice or assistance on an employment matter, please contact our Employment team.
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