The government has proposed reinstating tribunal fees, sparking significant discussion.
- Previously abolished due to unlawfulness in 2017, the fees deterred frivolous claims.
- The proposed scheme suggests a £55 flat fee per claim in employment tribunals.
- This initiative includes provisions for financial aid to preserve access to justice.
- A public consultation is set from January 29 to March 25, 2024.
The government has tabled a proposal to reinstate tribunal fees within employment tribunals and appeals, a move that has initiated widespread conversation and analysis across legal circles. This reintroduction aims to align tribunal operations with other court systems, such as the civil courts, which already impose fees. Primarily, the proposal seeks to generate resources crucial for the effective functioning of the tribunal system.
Historically, the endeavour to introduce tribunal fees was characterised by significant controversy and legal challenges. In 2013, a fee system was implemented by the coalition government, purported to decrease frivolous claims in the Employment Tribunal (ET) service. However, this led to a substantial decline in claims, with a 53% drop within the first year, until the Supreme Court ruled the fees unlawful in 2017 due to the obstruction they posed to access to justice.
Now, the restructured proposal advocates for a nominal £55 flat fee per tribunal claim, with the same fee applicable for any appeals. This fee structure is intended to circumvent the previous issues by being more affordable, simple, and proportionate, according to the government, thereby potentially avoiding a similar deterrent effect on claimants.
Paul Kelly, head of employment at a prominent law firm, highlights the predicament, stating: ‘Will the new fee regime be a fairer system for all and help to clear the backlog of unmeritorious claims? Or will it instead decimate the overall number of claims brought as it did before? Only time will tell.’ His words encapsulate the critical uncertainty surrounding the initiative.
To safeguard access to justice, the government has outlined fee remission schemes targeting individuals unable to afford these fees, complemented by the Lord Chancellor’s prerogative to remit fees entirely in exceptional circumstances. This approach is outlined in the HM Treasury’s ‘Managing Public Money’ handbook, which sets the principle of recovering costs without profiting from fees.
The outcome of this proposal will depend on whether it can maintain justice access while alleviating tribunal burdens.
