Government sets out proposals for tribunal fees

The Government has launched a consultation which puts forward two sets of proposals on how people will have to pay towards the cost of going to employment tribunal in the future.

It says the proposals "will ensure that those who use the system make a financial contribution but will also protect access to justice for those on low incomes or limited means". It adds that they "will also help businesses by discouraging unmerited and unnecessary claims and encouraging early settlement of claims".

It says that employers complain that claims significantly disadvantage blameless businesses, with few incentives for complainants to choose conciliation or mediation.

The Government claims "excessive claims" may in turn be a barrier to employment and growth.

Justice Minister Jonathan Djanogly said: "Our proposed fees will encourage businesses and workers to settle problems earlier, through non-tribunal routes like conciliation or mediation and we want to give businesses – particularly small businesses - the confidence to create new jobs without fear of being dragged into unnecessary actions."

The consultation will put forward two options for consideration:

- Option 1: an initial fee of between £150-£250 for a claimant to begin a claim, with an additional fee of between £250-£1250 if the claim goes to a hearing, with no limit to the maximum award; or

- Option 2: a single fee of between £200-£600 – but this would limit the maximum award to £30,000 – with the option of an additional fee of £1,750 for those who seek awards above this amount.

In both options the tribunal would be given the power to order the unsuccessful party to reimburse fees paid by the successful party.

The Government says many applications do not result in a full hearing or are settled out of court with both parties spending time and money preparing for formal legal proceedings when around 80 per cent of applications made do not result in a full hearing.

The consultation will close in March 2012, with a view to introduce the fees not before 2013-14.