The landscape of access to justice in the UK was altered significantly on 1 April this year, and this summer further changes are still to come with the introduction of the employment tribunal fee. 

Although at present there is no charge for a claimant to make a claim in an employment tribunal, all that is set to change with the introduction of a fee structure for employment tribunal cases. There are several reasons why the new fees have been introduced, key among them the objective of reducing the fee bill that has previously been the responsibility of the taxpayer. Perhaps equally important is trying to encourage claims to be settled before they get to the tribunal stage, avoiding spiralling costs to both parties.

The main risk for the claimant under the new fee structure is that there is no way to recover the new fee even if the claim is mediated and settled before it makes it to a tribunal setting. For those individuals who are currently on low incomes there is the possibility of applying for a remission of the fee, but few other concessions have been contemplated.

The new fees are payable in advance and fall mostly on the claimant to meet. In reality, where a claim is settled before it reaches a tribunal setting the repayment of the fee to the client will most likely be included in any settlement negotiations to ensure that the claimant is not left out of pocket, but it will depend on the parties’ positions as to where this cost ends up. Very simple and straightforward claims will attract a fee of £160 to issue and £230 for the hearing, whilst for most other claims it will be £250 for the issue fee and £950 for the hearing fee. There are also other fees that may arise, for example where an application is made to dismiss a claim following settlement this will attract a fee of £60.

For employers, the benefits of the introduction of the new fee structure are clear in that it will most likely deter claims from being made in the first place. What is hoped is that the new fee will weed out those claims that are not genuine from the start, and make claimants think twice before issuing a claim without having serious grounds to do so. With the introduction of the new fee, the government is aiming to ensure that those who want to use the tribunal service pay for it – or contribute to it – themselves. In 2011, the Justice Minister Jonathan Djanogly said, “Currently, the UK taxpayer bears the entire £84m cost per year of resolving other people’s employment disputes at tribunals. This is not sustainable. We believe that people should pay a fair amount towards the cost of their case.”

The current system has often been viewed as rather unfair by employers – and as naturally disadvantaging businesses. This is because there are few incentives in the existing process to encourage claimants to choose to mediate or settle, rather than to pursue the claim to its full extent. For many employers, these types of claims can significantly impact on their company’s health, becoming a barrier to growing the business and stifling recruitment processes, which become focused on choosing non-threatening employees. However, with the introduction of employment tribunal fees it is hoped that the considerable pressure of the prospect of the tribunal will soon start to lift.