On January 29th, 2024, the UK Government initiated a consultation concerning its proposal to reintroduce employment tribunal fees. Under this plan, Claimants would be required to pay a £55 fee to initiate employment tribunal proceedings, while appellants would be charged the same amount to lodge an appeal in the employment appeal tribunal (EAT). This article aims to examine the pros and cons of this controversial proposal, exploring both the potential benefits and drawbacks it may bring.
Employment tribunal fees were scrapped back in July 2017 after the Supreme Court held them to be unlawful on the basis that they were "inconsistent with access to justice".
Reintroducing Employment Tribunal Fees: The Benefits
Proponents for the reintroduction of employment tribunal fees point to a number of alleged benefits, which include the following:-
Discouraging Frivolous Claims
One of the key arguments in favor of reintroducing employment tribunal fees is that it may deter individuals from lodging frivolous or weak claims. By requiring Claimants to pay a nominal fee upfront, it could filter out cases without merit, reducing the burden on the tribunal system and allowing more resources to be allocated towards genuine disputes.
Encouraging Parties To Look At Alternatives To Tribunal
Having to pay fees could encourage parties to explore alternative to resolve their disputes, such as through ACAS, other forms of mediation, or via a settlement agreement. Such alternatives can often be more cost-effective and provide faster outcomes than formal tribunal proceedings, benefiting both employers and employees.
Reducing The Strain On The Employment Tribunal System And The Taxpayer
Proponents argue that the removal of employment employment tribunal fees back in 2017 led to a huge increase in the number of claims being filed, placing enormous logistical and financial strain on the employment tribunal system. By reintroducing reasonable fees, it could help manage the caseload and ensure that the system operates more efficiently. Moreover, the reintroduction of fees would reduce the burden of funding the employment tribunal system on the taxpayer
Claims With Greater Merit Overall
By requiring individuals to pay a fee, it encourages them to carefully consider the validity and strength of their claims before commencing proceedings. That is, the fact that they will need to pay a fee means that they are more likely to only commence proceedings should their claim have genuine merit and reasonable prospects of success, and once they have properly prepared it and made it as strong as possible
Reintroducing Employment Tribunal Fees: The Downsides
Nevertheless, there are a number of downsides to the reintroduction of employment tribunal fees critics argue, including the following:-
Barrier To Justice
One of the primary concerns with reintroducing employment tribunal fees is that it may prevent individuals with genuine claims from seeking justice. For low-income employees or those facing unfair treatment, a fee can act as a significant barrier, deterring them from pursuing their rights and potentially perpetuating workplace injustices.
Disproportionate Impact On Vulnerable Workers
Research has shown that certain groups, such as women and ethnic minorities, are more likely to experience workplace discrimination. Reimposing fees might disproportionately affect these groups, limiting their access to justice and perpetuating inequality within the labour market.
Indeed, one of the reasons that the Supreme Court found against the Government on employment tribunal fees back in 2017 was that it held that they indirectly discriminated against women. This is because they placed women at a particular disadvantage, as they were more likely proportionately than men to have to pay the higher Type B claims fees of £1,200.00, and the Government were unable to justify this discrimination in terms of its objectives of reducing the number of vexatious claims, incentivising earlier settlement, and reducing the financial burden on the taxpayer.
Potential For Exploitation And Mistreatment By Unscrupulous Employers
The reintroduction of fees might embolden unscrupulous employers, allowing them to exploit their workforce without facing the consequences. If employees perceive that pursuing a claim has become cost-prohibitive, they may hesitate to challenge exploitative practices, leading to the erosion of workers' rights.
Increasing The Strain On Advice Services
Many individuals depend on free legal advice services, such as Citizens Advice Bureaus, to navigate the complexities of employment disputes. Reintroducing fees could place additional strain on these organizations, making it harder for workers to seek guidance and obtain support.
Conclusion
The proposal to reintroduce employment tribunal fees sparks a complex debate. While proponents argue that fees could deter weak claims and encourage parties to look at alternatives, critics fear that it may impede access to justice for vulnerable workers and create an environment where unscrupulous employers can operate unchecked.
