Employment Tribunal Fees Ruled Out By Government
Justice Secretary and Deputy Prime Minister, David Lammy, has categorically stated that employment tribunals will remain free, ending recent speculation and concerns that employment tribunal fees might be reintroduced as part of efforts to reduce Government spending.
Union Response
The prospect of reinstating employment tribunal fees surfaced amid ongoing government reviews of departmental budgets and was met with immediate and strong opposition from trade unions. Paul Nowak, General Secretary of the Trades Union Congress (TUC), warned that reintroducing fees would disproportionately harm low-paid workers, particularly women, effectively denying them justice in the workplace.
Nowak stated: "Everyone should be able to enforce their rights at work. Reintroducing tribunal fees would be a gift for bad bosses and price many low-paid workers out of justice – especially women. Tribunal fees were a disaster when they were introduced under the Tories. They blocked genuine claims from going forward and cost more to administer than they generated."
Background
Employment tribunal fees were introduced in 2013 under the Conservative-Liberal Democrat coalition government, with charges ranging from £390 for straightforward cases to over £1,200 for more complex disputes. This move led to a dramatic 53% drop in case volumes within a year, as many workers found themselves unable to afford the costs. In 2017, following a successful legal challenge by the Unison trade union, the Supreme Court ruled the employment tribunal fees unlawful. The court found they restricted access to justice, particularly for those on lower incomes, and the fees were abolished.
Despite these precedents, the Ministry of Justice did not initially rule out the possibility of new employment tribunal fees during recent spending discussions. Back in January 2024, the previous Conservative government had also raised the possibility of reintroducing employment tribunal fees.
Government Rules Out Employment Tribunal Fees
However, David Lammy has now unequivocally dismissed any return of employment tribunal fees. He emphasised that ensuring free access to justice is both a basic right and a central part of the government’s strategy to improve working conditions and make work pay.
Lammy stated: “It’s a fundamental principle that everyone, no matter their income, should be able to get access to justice to challenge unfair behaviour at work. It’s not just a basic right, it’s also fundamental to this government’s plan to make work pay. That’s why it will remain free to bring a case to an employment tribunal, ensuring everyone, no matter their means, can stand up for their rights at work.”
Union leaders have welcomed Lammy’s announcement on employment tribunal fees, reiterating their readiness to collaborate with the government to create a tribunal system that is fair, accessible, and capable of addressing current challenges. The employment tribunal system has faced significant strain in recent years, with case backlogs growing to 45,000 open claims by March 2024 due to resource shortages and delays. Labour’s broader employment rights agenda in terms of the Employment Rights Bill is expected to increase tribunal activity further. In response, the Ministry of Justice has initiated recruitment drives for new judges to help clear the backlog.
Employers Grapple with Rising Sick Leave and Mounting Costs
A new survey by MetLife UK (together with Liz Barclay) has found that 88% of employers are increasingly worried about the effects of both long-term and short-term employee sickness absence, highlighting a growing challenge in workforce management. The report revealed that long-term absences, those exceeding four weeks, are costing employers an average of £20,735 per employee annually. Short-term sickness also has a substantial impact, with an average cost of £13,800 per employee each year. These figures account for not only lost productivity but also additional expenses such as hiring temporary staff and increased workloads for other employees.
Commenting upon the findings, Liz Barclay stated: "I’ve spent decades working with businesses of all sizes. Sickness absence is surging, and as a small business owner, I know the impact it can have on productivity and profitability, as well as on the relationship with customers."
Barclay added: "For me, the most important people at the heart of the detriment, are skilled, experienced and are hugely valuable and valued employees – people with mortgages, rent and bills to pay. People who are becoming unwell and being unnecessarily lost from the workplace, when their preference would be better health and remaining in work earning their salary. Founders, owners and bosses owe it to their business and their employees to support them, as quickly as possible, back into the saddle."
