In a new report, the Trade Union Congress (TUC), has stated that employment tribunal fees have been ‘a huge victory for Britain’s worst bosses’. The report published on 29 July, marks the first anniversary of the introduction of charges for employment tribunals.
The new system, introduced in July last year, requires parties to pay an upfront fee to raise a claim in an employment tribunal. This is followed by a further 'hearing fee' once the case is referred.
The report titled ‘What Price, Justice?’ gives essential details about the impact of the introduction of the fees. The report shows that since their introduction in July 2013, the fees have resulted in a 79 per cent overall drop in claims taken to employment tribunals. The people most affected by this are women and low-paid workers.
The report looks at statistics from the Ministry of Justice and highlighted the following;
- Workers are being cheated out of wages by their employers without redress. The number of workers pursuing claims for non-payment of minimum wage has fallen by 70 per cent and claims for wages and holiday pay not being paid has dropped by 85 per cent.
- Women have been the most affected, with an 80 per cent drop in the number of female employees pursuing sex discrimination claims and a 26 per cent drop in the number of women pursuing pregnancy discrimination claims.
- Furthermore, both racial minorities and the disabled have also been affected.In the first three months of 2014, the number of race discrimination and sexual orientation claims fell by 60 per cent compared to the same period in 2013 and disability claims having dropped 46 per cent from the figures for the previous year.
The report states that the reason many people are failing to claim is because the tribunal often costs more than the money they are owed.
Frances O’Grady, TUC General Secretary said:
“Employment tribunal fees have been a huge victory for Britain’s worst bosses. By charging up-front fees for harassment and abuse claims the government has made it easier for bad employers to get away with the most appalling behaviour. Tribunal fees are part of a wider campaign to get rid of workers’ basic rights. The consequence has been to price low-paid and vulnerable people out of justice”
The current regime is now the subject of a legal challenge by trade union UNISON. UNISON argue that forcing employees to pay a fee in order to bring a claim against their employer acts as a barrier to access to justice. Also UNISON argue that the fees put lower paid workers at a disadvantage which indirectly discriminates against women and ethnic minorities.
Shailesh Vara, Minister for Justice said:
"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 free alternatives such as the early conciliation service provided by [conciliation service] Acas. It is not fair for the taxpayer to foot the entire £74m bill for people to escalate workplace disputes to a tribunal, and it is not unreasonable to expect people who can afford to do so to make a contribution. For those who cannot afford to pay, full fee waivers are available."
Employment Solicitors in Glasgow
If you are an employee or employer looking for advice about Employment Tribunal, or for any other employment law matter, Employment Law Glasgow's specialist lawyers can help. To get in touch, please complete our online enquiry form. You can also call 0141 811 0224.