The Government has announced the abolition of employment tribunal fees following the Supreme Court’s ruling that they are unlawful. This will affect claimants who have brought cases regarding matters, such as unfair dismissal, discrimination and other work place issues, since the introduction of tribunal fees by then Lord Chancellor Chris Grayling in July 2013.
The appeal to the Supreme Court was backed by trade union Unison, which argued that the fees restricted access to justice for thousands of employees treated unfairly in the workplace. This was supported by the fact that, since the introduction of fees, there had been a 70% fall in employment tribunal cases.
The fees varied depending on the type of claim brought by an individual, ranging between £390 and £1,200. Lower fees were paid in claims concerning unpaid wages, redundancy pay or breach of contract, while claims of unfair dismissal, equal pay, discrimination and whistle blowing tended to incur higher fees owing to their complexity and time-consuming nature. The Supreme Court took issue with the fees for various reasons.
Firstly, some people would not bring their cases to employment tribunals because paying fees would cancel out the benefit of any financial reward. The court added that claimants with low or middle incomes would only be able to take their claim further if they sacrificed “ordinary and reasonable expenditure for substantial periods of time".
Secondly, the imposition of fees was indirectly discriminatory because more discrimination claims are brought by women than men in the workplace. The justice system was therefore not allowing women equal rights to men in this regard.
The decision was described by the Law Society as “an urgently needed wake-up call”. The President of the Law Society, Joe Egan, also added, “Justice must never be a luxury for those who can afford it, it is a right we all share.”
The Government has now abolished employment tribunal fees and has guaranteed to repay £32m to all those who had incurred fines since the policy’s inception in 2013.
The policy had effectively dissuaded genuine claimants from bringing claims against their employer simply because they could not afford to do so. It is therefore a victory for employees, particularly in low to middle incomes, who no longer face significant and unfair barriers in pursuing their employer in an employment tribunal. The decision not only opens up the possibility of employees pursuing ‘new’ claims but there may be scope for employees who were deterred from bringing a claim due to not being able to afford the fees, bringing claims outside of the traditional three month time limit.
Anthony Thompson, the author, is a Director in the Employment department at Duncan Lewis Solicitors. With over 20 years’ experience, Anthony has advised and supported businesses and individuals on all aspects of the working relationship, including both contentious and non-contentious matters. He is also an advocate, having achieved notable successes representing clients in employment tribunals, and has negotiated significant settlements at private and judicial mediations.
If you have a problem with employment, it is important to take legal advice and find out what your legal position is as soon as possible. Duncan Lewis can offer clear legal advice on employment law at any stage of an employment matter. Duncan Lewis also has a successful track record in advising companies and employers on employment matters and disputes. The sooner you call us, the sooner we can help you with an employment claim or employment law matter.
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