Employment Tribunal Fees Ruled Unlawful

Four years after their controversial introduction, the Supreme Court has today unanimously ruled that the requirement for employees to pay fees to use the employment tribunal system was unlawful and unconstitutional.

Since 2013, potential claimants have been required to pay an issue fee – the amount of which depends on the nature and complexity of the claim. Further, if the matter proceeds to a hearing, a further hearing fee is payable. A limited fee remission scheme was put into place for those on low incomes.

The union UNISON has challenged the fee regime on the basis that it severely restricted access to justice, and highlighted the significant reduction in claims since 2013 as an indicator of the reluctance from many to pursue claims. The Government’s position was that there should be a contribution to the tribunal system from individuals who made use of it, and the introduction of fees should deter individuals from bringing vexatious claims.

As there is no right of appeal from the Supreme Court, unless the Government attempts to legislate further, employees will no longer have to pay to submit a claim or proceed to a hearing. Further, it is estimated that some £27 million will have to be refunded to those who have paid fees in the past.

What does this mean for employers? It is almost certain that the number of claims submitted will increase sharply, reversing the trend seen since 2013. However, it is expected that ACAS Conciliation will continue to form a mandatory part of pre-claim conduct, as this has also contributed to the reduction in litigation.

The employment team at Chadwick Lawrence currently acts for over 250 businesses under a retainer scheme, and we offer an insurance-backed product to protect against the risk of litigation. Get in touch today to see how we can help.