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August 02, 2013

Unison to challenge new employment tribunal fees

Trade union Unison is to seek a judicial review to challenge the introduction on 29 July of fees payable by workers who want to take their employers to employment tribunal.

Employees must now pay either £160 or £250, with an additional £230 or £950 payable if the case proceeds to tribunal. The higher charges will apply to more serious cases, for example, where unfair dismissal is alleged.

A further charge of £400 will apply if an employee appeals a decision, with another £1,200 payable for a full appeal hearing. Costs are reduced if more than one employee brings the same claim against the same employer, while claimants who are unable to pay can apply to have the tribunal fees reduced or waived.

Changes have also been made to unfair dismissal compensation, which will be capped at one year's salary (or £74,200 whichever is lower).

"The introduction of punitive fees for taking a claim to an employment tribunal would give the green light to unscrupulous employers to ride roughshod over already basic workers' rights," said Unison general secretary Dave Prentis. "These fees are unfair and should be dropped." Unison believes the changes leaves British workers among the least protected in the European Union.

Unite general secretary Len McCluskey described the changes as a "throwback to Victorian times" and added: "Seeking redress for unfair dismissal and discrimination and other injustices in the workplace is a fundamental human right – but now ministers are putting up insurmountable financial hurdles for working people in pursuit of justice".

Employers' groups have welcomed the changes as a way to deter weak claims. The Confederation of British Industry (CBI) said: "Fear of the costs of fighting a tribunal – even when you are in the right – is a massive confidence killer. With firms and employees waiting over a year for a tribunal at the moment, something has to be done to speed things up".

The Federation of Small Businesses (FSB) said: "For an employee, an employment tribunal can be seen as a 'no-cost' option. The FSB hopes the introduction of fees will curb the number of speculative claims and help reduce the perceived risk of taking on staff."

Between 2001 and 2011, the number of tribunal claims is reported to have rocketed by 81%, with taxpayers paying the cost of bringing such cases. Justice Minister, Helen Grant, said: "It's not fair on the taxpayer to foot the entire £74m bill for people to escalate workplace disputes to a tribunal. We want people, where they can afford to, to pay a contribution.

"It is in everyone's interest to avoid drawn-out disputes, which emotionally damage workers and financially damage businesses. That's why we are encouraging quicker, simpler and cheaper alternatives, such as mediation."

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