New fee regime in the employment tribunal

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New fee regime in the employment tribunal — impact for employers and insolvency practitioners - .PDF file.

A new fee regime will take effect for employment claims brought on or after 29 July 2013.

Over recent years, there has been a significant amount of criticism, particularly from employers and insolvency practitioners about the ‘claim culture’ of the employment tribunal system. Currently it is free for a claimant to submit a claim to the employment tribunal. This means that there is little to discourage a recently dismissed employee or a trade union representative acting on such an employee’s behalf from bringing a claim or actively considering settlement. The government has indicated that the purpose behind the introduction of fees is not to deter claimants but to discourage vexatious claimants and to encourage settlement.

Under the new fee regime, an individual employee or their trade union representative, if the union agrees to pay, will need to pay a fee of between £160 and £250 (which depends on the type and complexity of the claim) to submit an employment claim. There is a further fee for the claimant or union representative of either £230 or £950 in order to proceed to a hearing…

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