IN a recent Supreme Court ruling, the Employment Tribunal Fees were judged, unanimously, unlawful.
As a consequence, all fees that have been paid since the system came in to force, in 2013, will be reimbursed. After this introduction there was a drop in cases of around 80 per cent.
We will have to wait and see if this leads to a sharp rise in claims but one thing is clear – it is crucial to ensure HR policies and procedures are up to date.
On 26 July 2017, the union Unison, successfully challenged tribunal fees in the Supreme Court, with the court agreeing that employment tribunal fees prevented access to justice. It was recognised that the cost of a tribunal claim fee is higher than in the Small Claims Court and were disproportionate. Furthermore, employment tribunal cases are important for all of society, not just the individuals bringing the cases.
In addition, the cost of bringing a discriminatory claim is higher than bringing a wages claim for example, which the Supreme Court felt in itself was indirectly discriminatory. The judgement also found that the fees were potentially discriminatory against women, For example women looking to bring claims for maternity discrimination might be in part-time jobs and may not have the financial means to bring a claim.
This ruling means all fees paid by claimants since the introduction of the fee system in 2013 will be reimbursed, this figure is estimated to be in excess of £27 million, and for now, no fees are payable for bringing a claim. This may change once a new system is implemented but it is unlikely the fees will be abolished completely.
For those who didn’t bring a claim because they couldn’t afford the fee, it’s possible that tribunals may be faced with the argument that it is ‘just and equitable’ to extend limits to allow these claims. In other cases, they may have to determine if it was ‘not reasonably practicable’ for the claim to be brought.
Given the significant reduction in claims over the last four years, employers may have felt less threatened by the risk of tribunals. It is good practice to review HR policies and procedures regularly, now more than ever you should review your practices and make sure that you are compliant. We may see a surge in tribunal claims being brought now that that the financial barrier to doing so has been lifted.
Rebecca List is an Employment Law Solicitor and a Partner with Tollers Solicitors. If you have any concerns regarding the scrappage of employment tribunal fees or would like to review your HR policies and procedures contact Tollers on 01602 258558.
