The TUC has welcomed a Ministry of Justice announcement of a review into the impact of employment tribunal fees.
Depending on the type of case, it costs either £160 or £250 to lodge an employment tribunal claim, with a further charge of either £230 or £950 if the case goes ahead.
The lower costs apply to cases involving issues including unpaid wages or breach of contract and the higher fees in situations such as unfair dismissal and discrimination. Under a remission scheme, people on certain benefits or whose monthly income falls below specific thresholds are exempt from all or part of the fees.
The TUC said that Ministry of Justice figures published on 11 June, the day the review was announced, showed that the number of single employment tribunal claims – those brought by a sole worker or employee – were 69 per cent lower between January and March 2015 than during the same period of 2013, shortly before employment fees were introduced in July that year.
TUC general secretary Frances O’Grady said: “Charging people up to £1,200 to pursue a claim has priced thousands out of justice and ruined lives.
“This review is a welcome, if long overdue, announcement. However, it must not shy away from telling hard truths. It has to be transparent and prepared to recommend abolishing the current system.”
The government review will explore whether the introduction of fees has been successful in achieving the initiative’s original goals, including transferring costs from the taxpayer to people using tribunals, where they can afford to pay, encouraging the parties involved in employment disputes to find other ways to resolve their differences and maintaining access to justice.
The review, which is expected to be completed later this year, will make recommendations for any changes to the structure and level of fees and reforms to the remissions scheme.
Lara Murray, associate solicitor in Palmers’ Employment Law team, said: “An employment dispute can be disruptive to both the employer and employee as well as potentially creating unwelcome costs for both sides, should it reach a tribunal.
“Putting in place clear employment policies and communicating these effectively is essential to minimising the risk of such disputes. If a disagreement does arise, our employment law team can provide expert advice, with a view to negotiating an outcome satisfactory to all the parties involved and avoiding the need for more formal action. For more information, please contact our Employment Law team.”