The UK Government is expected to implement a fee structure for claims submitted to the Employment Tribunal (ET) and Employment Appeal Tribunal (EAT) starting in November 2024. These changes are designed to ensure that the system remains affordable, proportionate, and simple for all users while addressing the need for financial sustainability within the tribunal system.
The Proposed Fees
The new fee structure will apply to both claimants (individuals submitting claims to the Employment Tribunal) and appellants (those appealing ET decisions through the EAT). Importantly, the fees will be uniform, regardless of the type of claim being made or how the case is categorized.
- Employment Tribunal Fee: A fee of £55 will be charged for filing an Employment Tribunal claim. If multiple claimants are involved, they can choose to divide this fee among themselves.
- Employment Appeal Tribunal Fee: Similarly, a £55 fee will be charged per appeal submitted to the EAT. If an individual appeals multiple Employment Tribunal decisions, each appeal will incur a separate £55 fee, reflecting how the EAT processes each decision as a separate file.
Fairness and Affordability
To address potential concerns about affordability, the government has indicated that the fees are intended to be accessible, with the £55 fee representing a modest cost relative to the overall tribunal process. This fee covers the entire journey of a claim or appeal, ensuring that the process remains affordable for claimants and appellants alike.
Remission Scheme for Hardship Cases
For individuals who may face financial difficulties, a remission scheme will be available. This means that eligible claimants—those for whom the fees would cause financial or other forms of hardship—can have their fees reduced or waived entirely. The goal of the remission scheme is to ensure that no one is prevented from seeking justice due to an inability to pay.
Exceptions for National Insurance Fund (NIF) Claims
Claims related to payments from the National Insurance Fund (NIF) will not be subject to these fees. For example, if an individual is required to bring a claim to the Employment Tribunal to establish their right to a redundancy payment because their employer has become insolvent, no fees will apply. This ensures that individuals seeking payments due to insolvency are not unfairly burdened by the new fee structure.
What This Means for Employers and Employees
The introduction of fees for Employment Tribunal claims and appeals represents a significant shift in how these cases are handled. While the modest fee is intended to balance affordability and the need to cover administrative costs, it will introduce a new layer of consideration for both employees and employers involved in tribunal cases.
For employers, this change may lead to fewer speculative claims, as individuals may be more cautious before initiating legal action. However, businesses should also be prepared for the possibility of appeals and ensure that their workplace policies and procedures are robust and compliant to avoid unnecessary disputes.
Employees should be aware of their rights and the fee structure when considering whether to bring a claim or appeal. It will be essential to evaluate the potential costs and benefits, and for those facing financial hardship, to explore the remission scheme.
We’re here to help
Keeping up with new legislation can be challenging, HR Solutions can help ensure your policies, handbooks, and contracts are fully up to date with the latest laws. If you have any questions about the upcoming changes, we offer a free 30-minute advice session with one of our expert HR advisors. Simply complete the form here to get started.
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