Her Majesty’s Court & Tribunal Service (HMCTS) has just reported that the fee income generated from employment tribunal fees was just under £4.5m in the 8 months between 29th July 2013 and 30th March 2014, equivalent to about £6.7m projected forward over a full year. This means tribunal fees are generating about two-thirds the fee income of what HMCTS was hoping for in the first year.
The Ministry of Justice has also confirmed it will soon be announcing a review into employment tribunal fees. Meanwhile, the Unison judicial review of the introduction of tribunal fees is due to be heard by the Court of Appeal, with an early hearing date requested by the Court.
Despite being less than what the government hoped for, the income generated from employment tribunal fees has actually been a lot more than many experts predicted, especially given the reported two-thirds drop in the number of tribunal claims since the fees were introduced. However, given the large drop in claims, the government is facing increasing pressure to reform the system. Employment Partner Kate Fretten says, “They have already made the remission system easier and commentators believe that there is a fair chance fees will be reduced before the next election, but not abolished.”
At Frettens, all of our solicitors offer a free initial meeting or chat on the phone to answer your questions. If this article raises issues for you or your business, please call us on 01202 499255 andKate or Paul will be happy to discuss it with you.