Official figures reveal a steep decline in the number of employment claims raised in the UK since tribunal fees were introduced last year.
Ministry of Justice (MoJ) statistics published this week show a 59% drop in cases lodged between August 2013 and the end of March 2014 compared to the same eight-month period in the previous year (16,206 compared to 39,567).
The period between April and June 2014 also showed a decrease (4,245 claims lodged compared to 13,899 in the same quarter the previous year) but the figures are not comparable due to the introduction of early conciliation in April. All potential claims must now be referred to Acas before they can be lodged, which delays cases by up to one month.
Potential litigants have, since 29 July 2013, been required to pay an issue fee to lodge a claim and a hearing fee to proceed to a full hearing. While fees can be reduced or waived in certain circumstances, this is rarely granted. Fees range from £160 to £250 to issue a claim, and £230 to £950 for a hearing.
According to Innes Clark, head of employment law at Morton Fraser, the statistics will increase pressure on the government to reform the system.
“Whilst employers should not be faced with spurious claims, the impact of the fee requirements has been to create a major barrier to access to justice,” he says.
“The fee regime has unfairly hit low paid workers in particular, who should not be deterred, on grounds of cost, from pursuing legitimate claims. The publication of these statistics is further strong evidence that reform is needed.”
Trade union Unison unsuccessfully challenged the fee regime in the High Court earlier this year. An appeal is scheduled to be heard next week (18 September). The Labour Party has said it will reform the fees regime if it forms the next government.
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