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Employment tribunal fees are scrapped causing the floodgates to open

06 February 2018 Employment Law Julie Hecht

Last year, following a ground-breaking ruling, employment tribunal fees were abolished. In addition, fees paid in the past are being refunded following the Supreme Court ruling on 26th July 2017 that the fee system was unlawful.

Following the introduction of the regime in 2013 when the government introduced fees of up to £1,200 in order to cut the number of malicious and weak cases, the tribunal service experienced a downturn in the number of claims being issued and by October 2013, it was estimated that there had been a reduction of nearly 70% in the number of employment tribunal claims issued. However the public sector challenged these fees last year, claiming that they prevented access to justice for many claimants, especially those with lower incomes.

Whilst the ruling last year was seen as a victory for UNISON (the public sector trade union) and employees in general, many employers would claim it has caused the floodgates to open and unsurprisingly there has been a marked increase in the number of claims being issued at employment tribunals.

Employers need to be more aware than ever of the risks they take when dismissing individuals. Attitudes have changed and the balance of power has shifted towards employees and trade unions for the first time in a number of years. Workers are more inclined to bring claims to resolve their employment disputes now that they don’t have to find £1200 for the employment tribunal fee.

Garry Sutherland Head of the Employment Law Team at Macnabs comments: “Employees are more informed now than ever before as to the circumstances under which they can bring an employment tribunal claim – whether it is discrimination, wages or unfair dismissal – so it is vital that businesses get their HR house in order now.”

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