Tribunal fees to be implemented from 29 July 2013

HM Courts and Tribunals Service (HMCTS) has announced that from 29 July 2013 new Employment Tribunal fees will be introduced. They will consist of a two stage fee structure where claimants will be required to pay:

  • an issue fee to lodge their claim; and
  • a hearing fee (payable 4-6 weeks before the hearing date).

The level of the fee will depend on the category of the claim, with different fees payable for straightforward low level type "A" claims (such as notice and redundancy pay) and type "B" claims for all others (such as unfair dismissal, equal pay or discrimination). The fees are as follows:

  • Type "A" - £160 issue fee and £230 hearing fee;
  • Type "B" - £250 issue fee and £950 hearing fee.

Therefore, any employees bringing discrimination or unfair dismissal claims will have to put their money where their mouth is and pay £1,180 to take the claim to hearing.

On the face of it, this is good news for employers as it should deter employees with weak and speculative claims (subject to employees being able to proceed without paying a fee if they qualify under the remission scheme – see below). The change has been fully supported by the Institute of Directors which believes businesses are too often "forced to defend themselves against claims which have no merit, incurring heavy costs in the process".

Is there any exemption?

In contrast to the potential benefit to employers, concerns have been voiced that the fees will create a bar to justice for lower paid workers. In response to this the Government has clarified that the fee remission system that applies to civil proceedings will be used in Employment Tribunal claims. As a result no fee will be payable if the claimant is, for example, in receipt of jobseeker's allowance, income support and working tax credits or if their income is below a certain level.

The current fee remission system is due to be replaced by a new scheme where claimants will be eligible for a full or partial fee remission if they meet the qualifying criteria based on their disposable capital and gross (not disposable) monthly income. However, this system is due to come in after the new Tribunal fees, in Autumn 2013.

In addition to the above, Tribunals will have the power to order the unsuccessful party to reimburse Tribunal fees paid by the successful party. Further, there will be no refund of fees if a claim is withdrawn. As a result employees are likely to attempt to recover the fees paid in any settlement and as a result employers may find themselves ultimately being the ones picking up this cost.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.