Insight
Under new UK Government proposals, the possibility of fees for Employment Tribunals has returned, as has the possibility of fees to lodge an appeal with the Employment Appeal Tribunal (EAT).
The previous fee regime for Employment Tribunal claims was in force from 2013 – 2017, until the Supreme Court ruled that the charges prevented access to justice and breached both UK and EU law. Government statistics indicated a 53% decline in cases brought by individuals following the introduction of charges in 2013.
Junior Justice Minister Mike Freer asserted on Monday that “modest” fees of £55 for initiating a claim or appealing to the EAT were warranted to ensure users contribute to tribunal operational costs and promote dispute resolution through conciliation. The UK Government contended that the £55 fee struck a balance, allowing workers to pursue low-value claims that were marginalised under the previous fee regime, with fees payable from £390 to £1,200 based on the case.
Unlike the previous regime where claimants paid a fee when lodging the claim and again prior to a final tribunal hearing, the proposed £55 fee is intended to cover the entire procedural journey in the Employment Tribunal.
It has also been announced that, those who cannot afford to pay the proposed fees will be supported by a fee remission scheme, Help with Fees (HwF). This scheme aids those with low income and minimal savings by providing financial assistance for court or tribunal fees. While the UK Government highlighted the enhanced application of the new fee remission scheme compared to its predecessor, specific details are yet to be published.
At the time of the consultation, although options continue to be developed and discussed in relation to the timetable to devolve the administration of tribunals in Scotland, no decisions have yet been made. To that end, the fee proposals set out in the consultation cover the whole of the current jurisdiction of ET in England, Wales and Scotland. Northern Ireland has its own separate equivalent tribunal (Office of the Industrial and Fair Employment Tribunal) and does not form part of this consultation.
The consultation is set to run for a period of 8 weeks until 25 March 2024, and can be found here.