Why everyone benefits from the scrapping of employment tribunal fees

Professor Michael Ford QC, Professor of Law, University of Bristol Law School

Unfairly dismissed from your job? Seeking unpaid wages? For the last few years, if you wanted your case heard at an employment tribunal in the UK, you had to pay up front. For unfair dismissal, the fees amounted to £1,200, and for unpaid wages £390.

Introduced in 2013, the fees were designed to ensure that “users” of the system were the ones who funded it. The other justifications were to incentivise early settlements, and to deter weak or vexatious claims.

Underlying all these motivations was a concern that too many cases were being brought. And in that sense, the fees sort of worked.

That was mainly because the high level of fees (for workers who hadn’t been paid or had lost their job) compared unfavourably with the low level of sums awarded. A survey in 2013 found the median award for claims for unpaid wages was only £900. Put simply, it just wasn’t worth it. Continue reading

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