Tribunal Fees to Be Scrapped

Employment tribunal fees are poised to be abolished following a historic decision by the UK Supreme Court. Fees introduced in July 2013—sometimes as high as £1,200—have been declared unlawful, meaning that thousands of claimants will be eligible for refunds.

Background

Since their introduction, tribunal fees led to a significant decline in the number of cases brought by employees. The Supreme Court’s ruling overturns prior judgments and confirms that the fees regime was incompatible with long-established constitutional principles.

UNISON’s Legal Challenge

Public service union UNISON launched the challenge in 2013. General Secretary Dave Prentis hailed the decision as a “major victory for employees,” stating that ministers had ignored “laws many centuries old” when imposing fees.

Industry Reactions

Nicholas Robertson, Head of Employment at Mayer Brown, described the outcome as “the most significant employment case for many years.” Meanwhile, Luke Bowery of Burges Salmon noted the ruling’s surprising overturn given earlier court decisions, attributing the challenge’s success to the dramatic drop in tribunal claims.

However, Beverley Sunderland of Crossland Employment Solicitors warned that the government may attempt to reintroduce fees through new legislation—an effort that could struggle to pass in a hung Parliament.

Future Outlook

Despite the abolition, tribunal claims may not rebound to their previous levels. Robertson suggests that the Acas mandatory conciliation process (see our guide on Acas Mandatory Conciliation) will continue to encourage pre-claim settlements.

This decision coincides with the publication of the Taylor Review into Modern Working Practices, which had recommended reducing—but not eliminating—tribunal fees. Author Matthew Taylor told BBC Radio 4 that a “free preliminary judgement” could be a future compromise.

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