Employers are in favour of employment tribunal fees

The majority of employers are in favour of introducing employment tribunal fees – nearly 80 per cent said that they thought it would reduce litigation.

The findings from Eversheds also highlight that there is support for elevated charges for those who wish to pursue a claim above the £30,000 award cap. More than 60 per cent agreed that this measure would deter high-value cases.

Geoffrey Mead, Partner at Eversheds, believes that the Coalition should be concerned about this finding as it may put off legitimate discrimination, whistle-blowing or equal pay claims.

He said: “This threshold was proposed by the Government with the stated aim of assisting employers by providing certainty as to the value of any claim.”

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Despite the positive response to these costs, there was division between the two proposed charging options.

There are two choices up for consultation. The first is to introduce an initial fee of between £150–£250. This would be followed by an additional cost of around £250–£1,250 if it proceeds to a hearing, with no limit on the amount awarded.

The second suggestion is a single fee of £200–£600 with an award limit of £30,000. At this point an individual could pay an additional £1,750 in order to seek compensation above this threshold.

In both cases the tribunal would have the right to order the unsuccessful party to reimburse the fees to the other party.