Wed, 2 Feb 2011

Government considers tribunal fees

Employees pursuing grievance claims against their employers may face fees in future, following calls from business leaders to reduce the number of expensive cases that appear before employment tribunals.

A 56% rise in cases last year has prompted suggestions for a returnable fee or deposit of £30 to £500 per case to discourage spurious claims.

Pinsent Masons’ employment group partner, Selwyn Blyth, said ease of access to justice was a founding principle of the employment tribunal system, but over time cases had become complex and expensive.

‘When I started out 14 years ago, there was a cap on the amount of money that people could win,’ said Blyth. ‘That has been completely lifted – it’s much higher now.
Employment claims are worth a lot more money, and they’re more complicated because more law is involved.’

Blyth explained that people were abusing the system by bringing regular cases in the hope of receiving out-of-court settlements. ‘People can just bang in a claim in an hour online, then claim a nuisance value like £5,000 or £10,000,’ said Blyth.

The Government is expected to announce a public consultation on employment law in late January, but the TUC has warned that such fees discriminate against workers with genuine claims who can’t afford to pay.