Dated: 14 December 2011

The Ministry of Justice has today launched a consultation on introducing employment tribunal fees. Two options are put forward:

• Option one: an initial fee of £150-£250 for a claimant to begin a claim, with an additional fee of £250-£1250 if the claim goes to a hearing. There would be no limit to the maximum award.
• Option two: a single fee of £200-£600, with the maximum award capped at £30,000. There would be the option of an additional fee of £1,750 for those who seek awards above this amount.

The IoD welcomed the proposals, concluding that the suggested fees were of a sufficient level to act as a deterrent to vexatious or unmerited claims. The consultation suggests a fee waiver for those who cannot afford to pay. The intention is entirely justifiable, but the IoD would like to stress that the framework should analyse an individual’s ability to pay rather than their employment status.

Commenting on the proposals Alexander Ehmann, Head of Employment Policy at the IoD, said:

“The Government’s proposals for employment tribunal fees are well-judged. They provide a much needed disincentive to arbitrary claim filing, but are not at a level which would deny justice to employees with deserving claims. The Government should be applauded for recognising the long-standing imbalance of the tribunal system against employers.”

He added:

“While we support the broad thrust of proposals, there remains a risk that fees will be waived for the vast majority of claimants who will unsurprisingly find themselves unemployed when filing a claim. While the IoD recognises there shouldn’t be unreasonable barriers to justice, the current proposals mean that those with high levels of personal savings would be as likely to sidestep these fees as those in genuine hardship. The Government must look again at this element.”